GlaxoSmithKline is keeping its Research Triangle Park, N.C. operational center under new U.S. Pharmaceuticals President Christopher Viehbacher.

Viehbacher, the current president of European pharmaceuticals, will head the U.S. business following the promotion of David Stout to president of global pharmaceutical operations. Stout is assuming the responsibilities of Chief Operating Officer and Pharmaceuticals Operations President Robert Ingram, who is retiring from those positions effective Dec. 31.

The management appointments suggest that GSK continues to value geographic diversity in its operations - and in the pre-merger backgrounds of its senior executives.

Like Ingram, Viehbacher will be based at the former Glaxo headquarters in North Carolina. He will report to Stout in the former SmithKline Beecham headquarters in Philadelphia.

The preservation of two significant U.S. operational sites suggests that GSK wants to preserve its contacts with the North Carolina research community and Congressional delegation.

Stout will now report to CEO J.P. Garnier in London. GSK maintains a dual global headquarters in London and Philadelphia.

The elevation of Stout puts the top two management positions at GSK in the hands of former SB execs. Garnier and Stout previously worked together at Schering-Plough for most of the 1980s. Stout is not taking the chief operating officer title. Nevertheless, in the role of pharmaceuticals operations president, he is the top operations exec at GSK and the de facto heir apparent to Garnier.

Viehbacher hails from the Glaxo Wellcome side of the business. He first joined Wellcome in Germany in 1989. Like Ingram, Viehbacher's first significant operational experience was in Canada; he was CEO of Burroughs Wellcome Canada from 1993-95. (Ingram was head of Merck Frosst in Canada before joining Glaxo in 1990.)

Viehbacher served on the merger integration team during the Glaxo/Wellcome consolidation in 1995, and was named VP-strategy & integration of Glaxo Wellcome France and then head of the French business. He was named director of Glaxo Wellcome's European operations in 1999, and retained that position following the SmithKline Beecham merger that closed at the beginning of 2001.

The former Glaxo Wellcome U.S. pharma management team was led by George Morrow and George Abercrombie. Both execs left GSK upon the closing of the merger (¹ Also see "Amgen R&D Entrusted To Ex-Merck Exec; Today's Launches Given To Morrow" - Pink Sheet, 15 January, 2001., p. 5).

Viehbacher's successor as head of the European pharma business is another exec from the Glaxo side of the business: Senior VP-Asia/Pacific Andrew Witty. Witty will be based in London and report to Stout.

GSK International Pharmaceuticals President Howard Pien is not changing roles with the Ingram retirement. Pien was SB's global pharma head at the time of the merger; Stout reported to Pien.

Stout brings considerable North American marketing and management experience to the global pharma post; he joined SmithKline Beecham in 1996 as U.S. sales & marketing director. Two years later, Stout was named North American pharmaceuticals president.

As president of Schering Laboratories from 1994-96, Stout oversaw U.S. pharmaceutical operations, worldwide manufacturing, planning and financial services. He previously held the position of Schering Canada VP and general manager. Stout began his career in sales at Warner-Lambert from 1976-79.

GSK is crafting a unique position for Ingram as essentially the company's chief diplomat. Ingram will work part time as vice chairman of pharmaceuticals and will represent the company on the board of the Pharmaceutical Research & Manufacturers of America.

Ingram is widely respected within the industry for his understanding of government relations efforts. He began his career as a sales rep at Merrell Dow and then moved into government and public affairs. He joined Merck as head of its D.C. office in 1985.

PhRMA typically prefers that a senior operational exec represent members on the board. Ingram's experience in association work, however, will presumably assuage any concerns about GSK's commitment. Ingram will not have direct responsibility for the GSK D.C. office, which will report to Viehbacher.

GSK Management Triangle: Viehbacher To Head U.S. Rx, Reporting To Stout

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