In any event, history favors the ironic, this morning, it would seem (per the last lines of this PharmaLive article), as Carrie S. Cox is apparently going to be the non-executive chair of the SpinCo / NewCo Merck is forming to hold what I'll call legacy Schering 2.0 assets (and perhaps more importantly, liabilities, in her case -- see update, below).
I won't drag the readership through the entire 2007 to 2010 saga at Schering-Plough. . . but suffice it to say [in my experienced opinion] she utterly failed in her fiduciary responsibilities to the company' shareholders. She cravenly did "Fast" Fred Hassan's dirty work -- and then, she made off with around $44 million, all in, as the yard sale to Merck was closing. She and Fred left a well over $8
. . . .Merck notes that the new company’s footprint will generate about 75% of sales outside the U.S. and have about 10,000 to 11,000 employees. It will likely be headquartered in New Jersey. . . .
Carrie Cox will be the new company’s chairman of the board. Cox was formerly chair of Array BioPharma, chief executive officer and chair of Humacyte, president of Global Pharmaceuticals at Schering-Plough, and executive vice president of Pharmacia Corporation and vice president of Women’s Health Care at Wyeth-Ayerst Laboratories.. . .
Now she's to be the non-executive Chair of the spinoff? Color me. . . chagrined.
UPDATED: Mid morning -- I guess one other way to look at it is to say that from mother Merck's perspective -- since the SpinCo will be "sent out" with around $9 billion in debt, the cash proceeds from which will be dividended back to mother Merck, pre-spin (and thus tax free), Ms. Cox will preside over a debt load that just about equals the losses she and Fred inflicted on Merck's bar tab over the past decade or so. And Merck will have made back at least a goodly chunk of what it advanced, on their tabs -- in fact, nearly. . . all of it. That's the able lawyer, in Mr. Frazier -- playing the long game -- over a decade.
Q.: Will NewCo "siphon off" any of the existing Merck board members, as it goes? Perhaps Ms. Russo, the currently weakest board member, and also a former legacy Schering-Plough director? We shall see. End, update. I'm out -- grinning at the shoveling ahead. . . .
नमस्ते
5 comments:
As a former S/P employee...they weren't the only bad players.....Kogan and Cesan started the whole debacle. I often wonder was it premeditated? There were so many positive things going on at the time including a robust pipeline. Then all of a sudden...bam; manufacturing issues.....
Thanks anon. I quite agree...
I guess I’d single them out — along with their GC Sabatino — because it was a pattern, at company after company. Look at B+L or Pharmacia.
Thanks again... and do stop back.
Namaste....
To be clear, Raul Kogan ought to be brought in for criticism in S-P’s fall from grace, but to my knowledge he didn’t make such implosions a repeating career hallmark the way the crew of five did. . . .
yikes!
I think we agree....with the 5 shining stars (remember that~~?; play on Hassan et al); my premise is maybe Cesan/Kogan initiated it all at some high level; knowing that the Fab 5 come in to do the real ugly stuff. But, C/K get their buyout without the 'taint.'
Conspiracy abounds...!!!
Indeed, Anon. --
I am pretty sure Kogan made off with the high tens of millions. I just never tracked it.
And. . . you know it's not a "conspiracy". . . if they really are out to get you. . . heh.
New one up shortly, on the "rapid start" efforts -- at Moderna, NIH and elsewhere -- to get clinicals underway on hoped-for Corona virus vaccine candidates. It is no surprise that this effort [even though Corona is far less lethal, proportionately. . .] is at light-speed, compared to the three decades' delay, on what became the first approved Ebola vaccine.
Oops. . . I think I just blew my lead. Smile. . . .
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