NEW YORK - US pharmaceutical giant Merck, in troubled times after the withdrawal of a best-selling medicine, announced Thursday the appointment of Richard Clark as its new chief executive.
The company confounded speculation on Wall Street that it might choose a star outsider as its new head by picking Clark, a company insider, as the top executive.
Raymond Gilmartin stepped down as chairman, president and chief executive officer of Merck after nine years.
Gilmartin will remain a special adviser to the company's executive board, which Merck said would now be chaired by Lawrence Bossidy, former chief of Honeywell International.
Bossidy said the company looked at both internal and external candidates, including those unrelated to the pharmaceutical industry, to find its new boss.
"The more we looked, the more convinced we became that the ideal candidate would be familiar and experienced with the industry and Merck. We have found that candidate in Dick Clark," he said in a statement.
Clark, 59, who steps up from serving as president of Merck's manufacturing division, said he was "honoured" to be chosen.
"Along with Merck's experienced and talented senior management team, I look forward to leading the change that is necessary to continue Merck's success into the future," he said.
"As CEO, my priorities are clear -- meeting the needs of patients and building shareholder value."
Merck disappointed investors last month by reporting a 15-percent fall in first-quarter earnings to 1.37 billion dollars.
In September, Merck abruptly yanked its blockbuster arthritis drug Vioxx from international sale after research showed it doubled the risk of heart attacks and strokes in some long-term users.
The US Food and Drug Administration has said the drug can be put back on the market, albeit with restrictions, but Merck has yet to do so. Vioxx had 2003 sales of about 2.5 billion dollars.
Merck shares were 13 cents or 0.4 percent higher in pre-market trade at 35.06 dollars.
05/05/2005 13:27 GMT