As Chief Executives go, JP Garnier has always been VERY well paid. But in order to justify his huge salary JP needs to deliver – and he’s not – in fact, he is fast becoming an embarrassment to the company. When Garnier said “I’ll be a hero in three years.” (5 May 2004), I’m not quite sure this is what he had in mind!
At Glaxo’s AGM last week shareholders voiced their anger over the poor performance of GSK’s share price, which has dropped by almost 15% over the past year.
GSK investor John Farmer blasted the group for its “colossal under-performance” and demanded the resignation of chairman Sir Christopher Gent and a more speedy exit for CEO Jean-Pierre Garnier. Garnier is not due to step down until May 2008.
The current controversy over Avandia, the latest in a long line of scandals associated with Glaxo and its drugs, has seen more than £9 billion wiped off the share price.
New data that shows Avandia dramatically increases the risk of heart attacks, has seen frightened patients abandoning a long-term trial of the drug that is aimed at proving its safety. Glaxo has become so alarmed at the threat to the 4,400-patient safety study that it is examining ways to persuade volunteers to stick with the drug.
Perhaps Glaxo could get Sir Christopher to write to all the patients and tell them what he told the AGM “We remain confident that the significant benefits of the medicine continue to outweigh any treatment risks.”
Yep, that should do it…
Or maybe a word from JP himself would help all Glaxo’s frightened patients: “If anyone thought drugs were without side-effects, hopefully that’s over. All drugs have side-effects. We are having to spend hundreds of millions of dollars on lawyers.” Jean-Pierre Garnier 23 April 2005