Novartis US Pharma CEO Alex Gorsky Resigns
15 CommentsBy Ed Silverman // February 13th, 2008 // 8:10 pm
Alex Gorsky, who joined the drugmaker as its No. 2 exec in the US four years ago before rising to the top slot, resigned today, a Novartis spokeswoman confirms. A replacement for the 47-year-old executive, who had previously worked at Johnson & Johnson, is being sought.
Gorsky will “pursue opportunities outside of the company,” the spokeswoman wrote us this evening. “We thank him for his strong leadership of the North American pharma business and wish him every success in his new role. His successor will be announced at a later date.”
UPDATE: Gorsky is going back to Johnson & Johnson. He will be the company group chairman and worldwide franchise chairman for Ethicon, and report to Sheri McCoy, who runs the Surgical Care Group, a J&J spokesman confirms.
His departure comes four months after an executive shuffle in which Joe Jimenez became worldwide pharma ceo, a spot that was previously held by Thomas Ebeling. Jimenez joined Novartis in April from Blackstone, the private equity firm, and was previously on the AstraZeneca board and an exec at HJ Heinz.
The changes occur as Novartis undertakes a cost-cutting campaign that involves cutting about 2,500 jobs and saving $1.6 billion. Before that reorganization was announced, the drugmaker had already disclosed plans to trim 1,250 jobs in the US specifically.
UPDATE: We would like to note that this was an exclusive item first reported by Pharmalot, which may not have been acknowledged elsewhere.
Hypocrisy rules
If even 5% of what was said about this guy on CP is true, he was one of most disliked CEOs in Novartis USA history. His sudden departure says it all. Is vasella next. According to what those poor tortured sales reps are saying, that would be as good as news as this one. Maybe there is justice after all. The only problem is that “leaders” like this one do so much damage around them that when they do fall, there is no euphoria. Just some relief.
Bless the Truth
Just about time some of the rotten executives be ejected. Unfortunately this guy’s only achievement is the hiring of monsters and unethical crooks who have ruined the company and accumulated dozens of legal complaints. He did a nice job growing a fertile ground for whistleblowers and sexual harrassmnet cases. May the good Lord forgive him and the monster bullies arround him. Hopefully, NVS stock will pop up tomorrow! Vasella needs to resign too.
Internal view
Alex was not perfect in his role. However, he walked in 4 years ago to an impossible situation where Machiavellian culture ruled. The numerous people to leave or change jobs recently at Novartis; Graves, Ebeling, Iwicki, Schofield, and Smith were all there prior to Alex and built a culture of unrealistic expectations, quick fixes, and backstabbing. I really don’t think Alex had any idea of what he was in for when he was hired and if he had known would have not left J&J. In my personal estimation, it is Vasella that is to blame; he either ignored the pharma organization or Ebeling or supported its behavior until he needed a scapegoat. Either way, Alex was a pawn and Vasella’s ability to blame others should be over.
Harry Hamlin
Alex Gorsky had to be one of the worst leaders. He was out of central casting and knew what to say but his track record was terrible. Nothing but a glorified cheerleader, when things went bad he hide. He made the worst hires, e.g., Nancy Lurker. Not only was she a nasty person but also talentless. All they need to do is get rid of Anish Batlaw and they will have cleaned house of the people who did true harm. Alex, you were they 4 years too long.
someone
Now if only they can figure out a way to shuffle out Epstein and Vasella - what a happy day it truly would be…
Hypocrisy rules
Our update: How nice. He is going back to mama. Must be his good looks that did it. We can not see any other reason. So go to mama Alex and stay there. Whoever takes you they richly deserve you.
ps: he does have what is needed for another “celebrity” exec/CEO.
Jack
In the first posting, Hypocrisy Rules mentions CP. What is that and how do you access it? Thanks.
Hypocrisy rules
It’s the notorious/infamous (acording to some but I like it)
caphepharma blog. I think even Ed goes there on occasion. Look for “boards” and then for “company boards”. Hope Ed will not mind.
Hypocrisy rules
Sorry it is “cafepharma”
South Carolina
I think it is a huge loss for Novartis. I don’t care what other people say about Mr Gorsky. He was a good leader, compassionate person and was real…..unlike many execs who don’t have heart.
Lance Obahu
Alex likes to win. He ran with Risperdol and made a fortune for Jannsen taking it from $200 million compnay to 2 billion. He rode out Novartis rise but like all big pharma they have their ups and downs. Now Novartis is on a decline and with the reorganization he decided to jump. Why wouldn’t he. Big pharma thinks the way to improve is to hire a consultant like Boston Consulting or McKenzie and then hire them away to do their work. Only time keeps showing this does not work. Joe Jimenez is wet behind the ears and Alex is too smart to be brought down by him. In four years you cannot accomplish much nor screw up either. Novartis decline (which will be short lived) is due to inexperienced leaders in development who screwed up Galvus, and poor legal advisors who told them that you can combine two generic drugs and turn it back into a proprietary drug merely because you were studpid enough to do an NDA all over again and act like it was a new drug. Going to Ethican is even a smarter move as Jannsen has no new drugs and Risperdol is going generic and their new drug is nothing more than the active moiety so its really Risperdal in new clothing. So Jannsen is in big trouble, but you always will have surgery and need sutures so he cannot go wrong at Ethicon. Good Luck Alex and shame on you Dan Vasella, you idiot. Go work for the UN and leave Novartis already.
Hypocrisy rules
Interesting analysis. Alex ran with Resperadol and took the co from 200 mil. to 2 billion, all by himself. Novartis is in decline, not Alex’s fault, of course. Typical. Take the credit and pass on the debit that is how they operate. Success is their doing failure is someone elses’. So Alex was the hero of Resperdol. What the analyst does not say that at the time of its intro Resp. could be sold by trained monkeys for there was such a need and pant up demand for a drug like that used for non-responders to standard therapy. Besides, Clozaril by Sandoz also prepared the market for Resp. by selling the idea of such alternative therapy and had lot of problems that Resp did not. So it was like taking candy from the kids. Where is the heroism of Alex G? It just ain’t there. He just happened to be there at the right time and with his exec skills that are no better or worse than anyone’s at that level, it just happened with hundreds of reps spreading the word.
Again, with all those surgeries how can Alex fail?
thank you
Alex was a great leader. He was well respected, liked, hard working and honest. Maybe too honest and hard working for some. It’s a loss for the company.
You are right
Some one, I agree with you, Epstein needs to go back to drug store and be a staff pharmacist. So must Alex Riva go back to his coner shop in Paris. He has no feel nor touch of human relationship. He hires bad people like the biting tiger from BMS at stat dept. That guy should be sent to jail for hating the Chinness and people of color so badly. Ironically his skin is dark than mud. Investors should clean the house by dumping NVS and by MRK!
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