Kogan steps down from troubled Schering
pharmafile | October 21, 2003 | News story | |
Richard Jay Kogan has stepped down as Chairman of Schering-Plough and will relinquish his post as Chief Executive and President in time for the company's AGM next April.
Mr Kogan, who will be 62 in June, indicated that obtaining the approval of cholesterol drug Zetia was his final major task before stepping down.
"Now that Zetia has been approved, I will step down the earlier of either the annual meeting in April, or the Board selection of my successor", he said. "I am proud of the company's many achievements. Over the past two decades, we have built a good record in a rapidly changing industry and I know that Schering-Plough is well prepared to face the challenges ahead."
Some analysts, however, believe pressure from shareholders for a management change was behind his departure. Mara Goldstein, analyst at CIBC World Markets, told the Financial Times that a replacement from outside Schering could usher in a change of strategy and corporate culture.
While Mr Kogan was responsible for overseeing the company's pioneering DTC advertising for its blockbuster allergy drug Claritin, he has come under criticism for the handling of delays to the drug successor, Clarinex, following ongoing manufacturing problems.
Sales of Claritin have dropped ahead of its switch to OTC status aimed at minimising sales erosion by generic competition as US wholesalers reduce their levels of stock.
Schering is pinning hopes on Clarinex and Zetia on more than making up for Claritin lost sales and, despite issuing a profits warning for 2002 in October, which apparently angered investors, expects these two new drugs to boost the company in 2004.
Mr Kogan has been succeeded as Chairman by Richard de J Osborne, a director at Schering since 1988 who will take the lead in finding a replacement chief executive.
