BMS Board Sacks Dolan
According to the Wall Street Journal, Bristol-Myers Squibb decided to fire CEO Peter Dolan last night. The board took action after a federal monitor recommended that Dolan and the company’s general counsel Richard Willard be sacked because of their actions relating to the botched deal with Apotex to protect Plavix’s patent.
The monitor, Frederick B. Lacey said that Dolan’s Plavix-related actions violated the terms of an agreement the company made with the federal government after a three-year investigation into its efforts to provide wholesalers with more product in an attempt to meet sales targets.
Dolan is the third CEO of a pharmaceutical company to be dismissed in the past 16 months. Pfizer’s Henry McKinnell was fired in July and Merck’s Raymond Gillmartin was forced into retirement in 2004.
See below for previous coverage of Merck on this blog.
September 13th, 2006 at 7:01 am
I think it is astounding that their stock went up 5% yesterday on the news. I wonder what that says about investors views of those pharma companies who stock seems to be stagnant or slowly declining.
September 13th, 2006 at 7:56 am
Carol:
Yes, the stock price rise was very interesting. I think it had to do with the fact that Dolan was not viewed as a very capable CEO and that new management would bring better decision-making and strategic focus.