Merck's New CEO to Focus on Expanding the Product Pipeline

Bolstering Merck's flagging pipeline will be the major goal of Merck's new President and CEO Richard Clark, who was recently named to succeed the company's retiring leader, Raymond Gilmartin.

Clark, who began his career at Merck in 1972 as a quality-control inspector, said he is committed to growing the company's pipeline through any means possible, including mergers and acquisitions. "We're going to explore all good ideas," Clark said during a conference call. "We're looking for long-term shareholder value and to grow our pipeline. Anything that will help us toward those goals will be considered."

Larger acquisitions, however, probably won't be part of Merck's growth strategy, as Clark expressed reservations about high-profile mergers -- a stance that was also held by Gilmartin during his tenure. "It's evident to us that large-scale mergers haven't been very successful in the pharmaceutical industry, but we will still consider any situation that might make sense for us," Clark said during the conference call.

Clark's appointment came significantly earlier than many in the industry had anticipated. Merck announced last fall it was initiating a search for a successor to Gilmartin, who under company policy is required to retire in March 2006 when he turns 65. The company was hoping to find a replacement by the end of the year, but Merck's board of directors pulled the trigger on Clark, saying they felt an internal candidate would be best to lead the company.