Hospira's CEO and COO to step down
This article was originally published in Scrip
Hospira's CEO Christopher Begley and chief operational officer Terrence Kearney are to resign from their positions, having both served at the company since its foundation in 2004.
Mr Begley will continue as CEO until Hospira finds a successor. He will remain with Hospira as executive chairman of the board. Mr Kearney is to retire by the end of the year and his role will be filled by James Hardy, who is currently vice-president of Hospira's supply chain. Mr Hardy will be appointed senior vice-president of operations at the end of the year.
Mr Begley has been Hospira's CEO since it was spun-out of Abbott in 2004 and the company has more than doubled its market cap during his tenure. Hospira's share price has also doubled since 2004 to trade at above $50.
Mr Begley said: "Over the last six years we have transformed this company from one of declining sales and margins to strong growth and profitability, and the time is right for a new CEO to lead Hospira on its patient-focused journey to sustainable top-tier financial performance."
Hospira's board has formed a search committee, to be headed by Egon Zehnder to identify Mr Begley's successor. The committee will look for an external candidate with a strong healthcare background and proven experience leading multinational companies, Hospira said.
Mr Begley's successor will have to oversee the integration of Javelin Pharmaceuticals, which Hospira acquired for around $145 million last month. The acquisition was a particularly drawn-out affair, with Hospira twice extending the tender offer period, citing manufacturing issues that prompted a recall of Javelin's Dyloject (diclofenac injection) by Therabel, Javelin's commercial licensing partner in the UK (scripintelligence.com, 4 June 2010).