(Bloomberg) — Johnson & Johnson expanded a leadership overhaul as the health-care giant prepares for its chief executive officer and top scientist to depart before spinning off its consumer business.
Mathai Mammen, head of research and development for the Janssen pharmaceutical unit, and Bill Hait, global head of external innovation, will be elevated to executive vice president roles. They will share the duties of retiring Chief Scientific Officer Paul Stoffels though neither will take his title.
“We’ve got a tremendous and deep bench of leaders to replace him,” said Alex Gorsky, J&J’s outgoing CEO, in an interview on Bloomberg Television’s “Balance of Power With David Westin.”
“Those two leaders will be added to our executive committee and I think even increase the voice of science among our senior leadership team,” Gorsky said.
Mammen will become the executive vice president of R&D for all pharmaceuticals. Hait will lead the company’s innovation, medical safety and global public health efforts.
Vanessa Broadhurst, group chair of global commercial strategy, will become executive vice president of global corporate affairs, replacing Michael Sneed, who will retire April 1. Also being promoted is James Swanson, J&J’s chief information officer. All four will join the executive committee on Jan. 3.
New Year, New Company
The new year will mark a major milestone for J&J as its two most prominent executives — Gorsky and Stoffels — step down. The 135-year-old company, which is replacing Gorsky with longtime veteran Joaquin Duato, continues to prioritize internal talent to steer it into the future.
The leadership overhaul will position the company for a forthcoming breakup. After years of internal debate, J&J decided to separate its consumer division from the drug and devices business, a process it aims to complete within 18 to 24 months.
Read More: J&J Drug Business to Target Cancer, Eye Disease After Split
The split mirrors moves by other conglomerates such as General Electric Co. that are looking to sharpen their focus and more quickly respond to economic trends. The Covid-19 pandemic expedited that process, according to Gorsky.
“As dynamics change, markets change, the science changes, expectations change, we need to evolve with it,” he said.
Scientific Direction
Gorsky said the split will unlock the value of the pharmaceutical business. This year, J&J’s stock has underperformed many of its large-cap drug-industry peers, up only 4.5%, compared with the double-digit growth seen by Pfizer Inc. and Eli Lilly & Co., among others.
Moving forward, J&J may pursue different and emerging technologies, Gorsky said, including so-called messenger RNA used in the Pfizer and Moderna Inc. coronavirus vaccines.
“I think mRNA is a very exciting technology and in fact we are working at it in a number of different areas,” Gorsky said.
J&J’s top scientist Stoffels, known for his infectious disease research and passion for public health, will retire from J&J at the end of the year.
In his place, Mammen and Hait will steer the slimmed-down company’s pipeline to focus on lucrative pharmaceutical products, such as treatments for cancer and rare diseases. Together with Swanson, they’ll use data and technology to expedite the discovery and development process.
(Updates with TV interview with CEO beginning in third paragraph)
More stories like this are available on bloomberg.com
©2021 Bloomberg L.P.
