Changes at the top of pharmaceutical firms

The pharmaceutical industry was dominated by personnel changes among top managers last year, a scenario that was not anticipated at the start of the year. Whereas in 2006 the industry was heavily affected by the shortage of entry-level personnel, in 2007 it was top-level management positions that gave shareholders with major headaches. In total, five companies at a producer/importer level altered their managers last year: GlaxoSmithKline (GSK), Merck, Zentiva, Eli Lilly and Novo Nordisk. The former managers, industry veterans, were individuals whose names were strongly identified with the company; two, Adrian Caretu and Marius Savu, ran domestic operations for over ten years, whilst another, Mariana Wencz, supervised the company’s initial entry onto the market.
Among manufacturers, however, there are few changes anticipated this year. The takeover of LaborMed and privatisation of Antibiotice Iasi could also result in changes to their respective management structures. Another question mark regards the manager who will take over the reins of Zentiva Romania when Josef Belcik’s mandate as temporary head comes to an end. Should the Czechs manage to attract a rival manager, the pharmaceutical market could witness the management move of the year.
Already, market rumours have hinted at the return of Stephen Stead, CEO of the largest drug manufacturer in Poland, at the helm of a Romanian company. Another available pharmaceutical manager is Klaas Postema, who ran Sicomed’s operations until 2006. At present, he is one of the entrepreneurs, together with two other partners, behind Genesis Capital consultancy.
At first glance, pharmaceutical managers’ job appears to be easier: the issue of un-recovered funds has been largely solved, the funds for compensated and free drugs have risen considerably in recent years, and drug consumption has started to follow a strong upward trend. However, there still is the problem of legislative changes that are reviewed several times a year, of prices standing in the way of profit and also fierce competition. The main question is if companies will succeed in toppling hierarchies or preventing slippages in an industry where the leaders have remained the same for several years. The experience various managers have gained on other markets and business acumen will be evident in the end-of-year results.
Some of this year’s major management changes included the appointment of David Leichter as deputy chairman and general manager of GSK Romania, leader of the pharmaceutical market, Agata Kakoncic’s appointment as a country manager for Romania with Merck Sharp&Dohme, and Josef Belcik, who was put in charge of Zenktiva’s Romanian operations after the resignation of Mariana Wencz.
The distribution field also witnessed several interesting moves, although on this sector most founders are the ones who actually run the business. Retail did not experience any significant personnel changes last year.

Pharmaceuticals
2007 was dominated by personnel changes at top-level management, a scenario that was not anticipated at the start of the year
5 companies at a producer/importer level changed their managers last year: GlaxoSmithKline (GSK), Merck, Zentiva, Eli Lilly and Novo Nordisk.
At the level of manufacturers, there are few changes anticipated this year.
Distribution witnessed several interesting moves last year, but retail did not