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Pin to quick picksGlaxosmithkline Share News (GSK)

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UPDATE 2-GSK grabs Astra executive to replace pharma head

Thu, 19th Jan 2017 10:13

* Pharma head Hussain leaving GSK after missing top job

* To be replaced by Luke Miels from AstraZeneca

* Miels was head of Astra's European business (Adds interview with GSK CEO in Davos, further details)

By Ben Hirschler and Paul Sandle

LONDON/DAVOS, Switzerland, Jan 19 (Reuters) -G laxoSmithKline's global head of pharmaceuticals, AbbasHussain, is to leave Britain's biggest drugmaker after beingpassed over for the top job and will be replaced by Luke Mielsfrom AstraZeneca.

Hussain, the brother of former England cricket captainNasser Hussain, had been a contender to take over from ChiefExecutive Andrew Witty, who steps down at the end of March, butthe job went to GSK's consumer health boss Emma Walmsley.

"Succession processes are challenging for everyone involvedand, unfortunately, it is rare that all of those involved staywith the company," Witty said.

Miels' defection, announced by GSK on Thursday, is a blowfor AstraZeneca, which has seen a string of high-profilescientists leave in the last 18 months.

Its head of oncology, Mondher Mahjoubi, left to join Frenchbiotech company Innate Pharma a month ago, while Sanofipoached one of its top researchers in March.

AstraZeneca said Miels, who heads its European business,would stand down with immediate effect and the company hadstarted the process to find his replacement.

Witty told Reuters on the sidelines of the World EconomicForum in Davos that Miels would have a lengthy handover periodworking alongside Hussain, who intends to stay on at GSK throughmuch of this year.

GSK's manufacturing head Roger Connor and finance directorSimon Dingemans had also been suggested by industry observers aspossible candidates for the CEO job. However, Witty said he didnot expect any other significant management departures.

For new boss Walmsley, the selection of Miels is a keyappointment and marks her first big step in building up a teamas she prepares to steer the drugmaker through changing times.

Miels, who has both commercial and scientific experienceafter working at AstraZeneca, Roche and Sanofi, arrives at an important moment for GSK, which islooking to new drugs to offset the decline of lung treatmentAdvair.

"In the next 18 to 24 months we are going to have somethinglike 25 assets reporting out clinical data," Witty said. "If wehave a substantial yield of good news from this Phase IIpipeline then hopefully by 2019 or 2020 the company will need toinvest a bit more in R&D."

Walmsley, who worked in marketing and management at L'Oreal for 17 years before joining GSK, has her roots a longway from the pharmaceutical lab bench, which has raised doubtsamong some investors about her insight into prescription drugs.

Last month GSK said it was bolstering scientific expertiseon its board by establishing a new science committee, chargedwith overseeing research, as she prepares to take over. (Editing by Jason Neely and Mark Potter)

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