Never Mind The Layoffs: Hassan & Damage Control
7 CommentsBy Ed Silverman // July 17th, 2008 // 1:54 pm
The Vytorin controversy must be taking its toll on the Schering-Plough ceo. Next week, a former journalist from The Financial Times will join the drugmaker as a communications consultant to help manage Fred’s response to the flap over the cholesterol pill and assorted crises that cause bad press, among other things.
Christopher Bowe, who for many years followed pharma for the FT from the newspaper’s Manhattan offices, arrives in Kenilworth, New Jersey, to work closely with Ken Banta, a full-time consultant and strategic communications specialist, our sources tell us. For many years, Banta has functioned as Fred’s media masseuse and unofficial right hand at both Schering-Plough and Pharmacia.
Fred could certainly use some image building. The ‘Whytorin’ controversy over the disclosure and interpretation of the Enhance clinical trial caused a precipitous drop in prescriptions for both Vytorin and Zetia, one of two drugs comprising the cholesterol med. A chain reaction ensued, causing a slump in Schering’s stock price, which has since begun to recover, and huge layoffs.
However, some of the Schering employees who are losing their jobs may wonder how the company finds the money to hire yet another communications consultant at a time when 5,500 jobs are being eliminated in hopes of saving $1.5 billion by 2012. The answer may be that damage control requires a concerted effort. In any event, a Schering spokeswoman writes us that Bowe will serve as a consultant - not an employee - and work with many employees on a “variety of assignments.”
Former SP
Hassan and Schering-plough are already quite good at slinging the bull! Why do they need extra help when they are actively terminating rank and file employees? because to fred, it’s all about Fred!
SP 2
Good God! How many people do Fred and company need to try and improve their image after the incredible ENHANCE fiasco? They have a PR department, they’ve had Ken Banta forever, they hired back a former IR VP in May, they have multiple outside consulting firms and now they another communications consultant! Sounds like some major fiscal mismanagement in the face of falling sales and the need to layoff rank and file employees. Unfortunately, all the kings men will not be able to put Humpty Fred back together again. He’s taken a fall, cracked his head and now has egg is all over his face. Give it up and just retire. While you’re at it, take the Board and all your cronies with you. Your overworked and underappreciated employees will be much happier.
BPW
Why is this man still smiling? Because his company is under fire, but he continues to be able to protect the pockets of he and his cronies while he makes the ‘tough decisions” and lays off countless dedicated, hard-working employees.
Doc
Fred needs to talk to Billy Tauzin at PhRMA to learn the fine art of PR. Both men seem to think that by simply using some PR scheme they can lull the American people into a drug induced stupor to spout “Big Pharma is ethical” as their mantra. Once you show people your true motives, saying you have changed, carries little weight.
Deb
The true colors of Pharma have been revealed, and all the king’s horses and all the king’s men won’t be able to put this Humpty Dumpty together again.
Concerned
Well - what’s another several hundred thousand for another consultant? And, it is no secret they need one. Consultant fees are just written off as a business expense and also keeps some more of Fred’s outside cronies employed.
Then there are all the other consultants. First they had Price Waterhouse, then McKinsey, then Price Waterhouse and now the Boston Consulting Group. A bunch of recent Ivy league MBA types who are running around putting together spreadsheets and trying to come up with numbers to show Wall Street how much money they are saving. Two questions here - why can’t the current management and professionals do spreadsheets? And has anyone ever done a cost benefit analysis of consultant services?
As to the Board, how can anyone expect this handpicked board to step up to the plate. They have no incentive too - they are secure in their knowledge that by “hook or by crook” Fred will in the short term make his performance transition bonus targets or sell the company. Maybe they should read the book on Chainsaw Al, who anointed himself America’s best CEO. But all he every really did was destroy companies and the people working for them.
SP 2
Chainsaw Fred strikes again!!!! Just like at Pharmacia.