Merck president Frazier named as new CEO

NEW YORK - The Merck & Co. executive who successfully led thecompany's legal strategy over the Vioxx recall was named CEO onTuesday.

The promotion puts Kenneth C. Frazier in the top spot as thecompany continues integrating its $41 billion buyout of Schering-Plough. The move added a strong pipeline of drugs as the companylooks toward future growth.

Frazier, 55, is currently Merck's president and will become aboard member as part of the promotion. In April, he was named to hiscurrent position from head of global sales, where he oversawoperations in the company's most lucrative unit. At the time, themove to president of the company made Frazier the most likelycandidate to take over from Richard T. Clark, who was expected toretire per company policy at age 65 in March.

CEO Clark, who was a key force behind the Schering-Plough buyout,will remain chairman of the board. He has been CEO since 2005.

The promotion of Frazier completes an upward arc for the mancredited with steering Merck through a storm of potentiallydebilitating costs as lawsuits poured in over the painkiller Vioxx.In 2004, it was pulled from the market because of concerns itdoubled the risk of heart attack, stroke, and death.

General counsel at the time, Frazier had initially elected tofight the lawsuits. Victories in early trials helped the companydevelop a settlement deal for nearly all the cases for a total of$4.85 billion - well below what analysts had estimated as Merck'sliability. Frazier has said his key goal during the lawsuits was touphold the company's core values of putting science first.

He gained key experience as head of global sales, the companysaid, and helped to design a new sales model while improving coststructure and focusing on emerging markets. As president, he helpeddrive the growth of new products and a late-stage research anddevelopment pipeline.

He told The Associated Press on Tuesday that he is lookingforward to focusing on the company's pipeline of potential drugs,which include the cholesterol treatment Anacetrapib. That drug is apotential game-changer in the market, but it still has years to goin development.

"For the entire industry, the challenge will be continuing toinnovate going forward," he said.

That focus on the future was a key reason for the company'sbuyout of Schering-Plough, which gave Merck the allergy drugsNasonex and Clarinex along with animal health products, consumerhealth products, and a biotech division. Merck, based in WhitehouseStation, N.J., is the world's second-biggest drugmaker by revenue.

Outgoing CEO Clark said the integration is "truly exceeding"expectations at the company.

Merck reported third-quarter results last month. Financially, thecompany met Wall Street's quarterly expectations, after adjustingfor a series of charges. Its revenue for the period surged 84percent because of the addition of Schering-Plough products. Merck'stop seller, the asthma and allergy drug Singulair, gained 12 percentto reach just under $1.22 billion.

The push to drive sales of current treatments and build for thefuture occurs as the company faces generic competition on otherproducts. Sales of the blood pressure drugs Cozaar and Hyzaar fell51 percent combined during the most recent period because of genericcompetition, driving overall prescription drug sales lower.

The sales drive includes continuing to tap into emerging marketssuch as China, India, and Russia, as revenue levels off in the U.S.and Europe.