JP Garnier leaves the drugmaker next year at this time and the wily ceo has given three of his lieutenants assignments to determine which, if any, are worthy of his legacy. The lucky candidates are: David Stout, who heads global drugs, Chris Viehbacher, US pharma titan, and Andrew Witty, who has the same role in Europe.

Stout has been asked to come up with proposals to rethink ways to manage the supply chain, Viehbacher must grapple with the industry’s public standing and Witty must look at marketing given the growing sensitivity about costs and direct-to-consumer advertising. This is on top of their day jobs, by the way.

Let’s see, who has the hardest assignment? The supply chain is critical, of course, but not very sexy. Marketing is rife with allegations of illegal activities, so this job involves finding ways to avoid criminal charges. And the industry image is so bad these days that no one seems to smell nice. Hmm….maybe studying the supply chain isn’t so bad.

Perhaps, however, JP may want to look outside the company, or outside pharmaceuticals. A little fresh thinking is in order for an industry that clings to an outdated model.

Anyway, in discussing the rivalry, The Daily Telegraph notes that, at age 52, Mr Stout is the oldest of the candidates and has worked with Garnier the longest. Both came from the SmithKline side of the business. Before taking on his job overseeing the drug biz, Stout ran Glaxo’s business in his native US.

Andy Smith, who manages the International Biotechnology Trust, an investment fund, said Stout’s experience in the “all-important” US market will be a strong advantage as it accounts for about half of Glaxo’s and is the largest market in the world. Others, however, believe Stout lacks the dynamism of his rivals.

Viehbacher, 47, has the advantage of having a lot of direct access to Garnier because he works in Glaxo’s US headquarters in Philadelphia, where Garnier bases himself. Some analysts believe his present job and previous experience running the European biz makes him a well-rounded candidate. His mixed Canadian-German heritage also fits Glaxo’s international culture.

Mike Ward, an analyst at Nomura Code, said: “Glaxo holds a round table about twice a year on its US business. Viehbacher is very polished and gives the impression he is in command of his troops.”

One drawback is that GSK may not want to appoint another US-based chief executive, after the palpable reluctance of Garnier - who is French but has mainly lived in America - to come to the UK. The issue contributed to an early froideur between the company and London investors. Viehbacher could allay fears of a repeat of the problem by simply moving to the UK.

Despite being the youngest candidate, the 42-year-old Mr Witty has run Glaxo’s Asian business and done time in the US before taking over Europe in 2003. One industry insider said: “Witty is very dynamic and even a bit impetuous. But he has a lot of talent and he would be a courageous appointment.”

Source: The Daily Telegraph

Hat tip to In Vivo
[tags]GlaxoSmithKline, Jean-Pierre Garnier[/tags]