Dr. Roger M. Perlmutter, 60, the former research head of Amgen, will replace Peter S. Kim, 55, Merck’s current head of research, who is retiring. The company said Dr. Perlmutter would start on April 15 and the two would work closely together until Mr. Kim leaves the company in August.
Mr. Kim, who took over as head of research and development in 2003, is credited with overseeing the development of some of Merck’s biggest products, including the diabetes drugs Januvia and Janumet, which together brought in sales of more than $5.7 billion in 2012.
But after several recent disappointments, analysts and others have questioned whether Mr. Kim was the right person to lead Merck’s research unit.
In February, the company’s stock fell 3 percent after officials announced that it would delay seeking approval for a highly anticipated osteoporosis drug. And in December, it announced that a combination drug aimed at raising so-called good cholesterol levels had failed to protect against heart attacks and strokes in a large clinical trial. The company later said it would not seek approval for the drug in the United States and withdrew it from the European market, where it had already been approved.
“There is such a thing as a blockbuster failure, and there have been a few lately,” said Erik Gordon, a business professor at the University of Michigan who follows the pharmaceutical industry. “The analysts have been pointing at Kim, Kim, Kim.”
In a statement, Kenneth C. Frazier, Merck’s chief executive, praised Mr. Kim’s tenure at the company. “Peter has helped sustain Merck’s commitment to outstanding science and innovation during a period of enormous change for our company and our industry,” Mr. Frazier said in the statement. “His contributions have positioned us well for future success.”
Dr. Perlmutter was Amgen’s head of research and development from 2001 until November 2012, overseeing the development of several successful drugs, including the drug Prolia, to treat osteoporosis, and Xgeva, to counteract bone metastases from cancer. Analysts are also eagerly anticipating an experimental anti-cholesterol drug, which is now entering late-stage clinical trials.
But the company has also suffered some disappointments under Dr. Perlmutter, including its cancer drug Vectibix, which did not perform as well as expected. Sales of Amgen’s anemia drugs, including Epogen and Neupogen, have also been declining recently, in part because of safety issues that were brought to light after the company ran clinical trials aimed at increasing the dosages used.
Dr. Frazier said Dr. Perlmutter was “ideally suited” to lead Merck’s research unit. “I am confident that under Roger’s leadership, Merck will continue to build upon our legacy of translating cutting-edge science into medically important products that make a difference for patients,” he said in the statement.
Before Amgen, Dr. Perlmutter was executive vice president of worldwide basic research and preclinical development at Merck.
Merck declined to make either Dr. Perlmutter or Mr. Kim available for interviews.
Andrew Pollack contributed reporting.
Article source: http://www.nytimes.com/2013/03/08/business/merck-replaces-its-research-chief.html?partner=rss&emc=rss