Allergan CEO Pyott Out But Don't Fret, He May Have Landed His Next Gig Already

Published: Mar 19, 2015

Allergan (AGN) CEO Pyott Out But Don't Fret, He May Have Landed His Next Gig Already
March 19, 2015
By Riley McDermid, Breaking News Sr. Editor

Ousted former Allergan Inc. chief executive David Pyott has found a new home at Dutch consumer electronics company Koninklijke Philips Electronics NV, which said Thursday it is proposing to appoint him a as a new member of its Supervisory Board.

Pyott was purged from the eye care business after its acquisition by Actavis plc in November 2014. He is perhaps best known for the infamous $34,955,619 “golden parachute” provided by the new management in return for walking away.

It appears he has now landed on his feet: Pyott is also a director of Avery Dennison Corporation and its lead independent director and his new gig at Koninklijke will also keep him busy

"Mr. Pyott has gathered in-depth knowledge of the pharmaceutical and healthcare industries, in North America as well as globally,” said Jeroen van der Veer, chairman of Philips' Supervisory Board. “His expertise will be invaluable in view of Philips' transition into a company focused on HealthTech."

Actavis Plc (ACT), which last fall agreed to buy Allergan Inc. (AGN) for a deal valued at $70.5 billion, is conducting a wholesale cleanse of its upper ranks after it takes over, said in December it will replace Allergan’s current upper management with its own internal choices.

The firm said that Brent Saunders will continue to lead Actavis as CEO and president and a member of the board of directors. Paul Bisaro will remain executive chairman of the newly-combined company’s Board of Directors.

At the time, Pyott had no role that has been decided yet, said David Belian, a spokesman for Actavis, and all other C-level executives are out. The sole exception is Douglas Ingram, Allergan’s president and former head of its Europe, Africa and Middle East unit, who will stay on as an adviser to Saunders.

However, Fierce Biotech reported that after "extensive discussions" with Allergan Pyott will walk away with a $34,955,619 golden parachute.

"We are committed to realizing the full potential of the historic combination of Actavis and Allergan beginning on Day 1, and announcing the proposed leadership of the combined company is a critical step in achieving that objective," said Saunders in a statement. "The management structure we are announcing today will ensure that we capitalize on the value of Allergan's world-renowned businesses and the proven track record of the leaders of its powerful and critically important franchises.”

New Jersey-based Actavis has its legal address in Dublin and the deal will make Actavis one of the world’s 10 biggest drugmakers, including exclusive rights to blockbuster cosmetic drug Botox.

"At close, this combined leadership will ensure that the new company capitalizes on our expanded global commercial footprint, maintains our continued dominance as a world leader in generics and that we elevate our commitment to brand innovation and development by making brand R&D directly report to the CEO level,” said Saunders.

The deal closed officially on Tuesday and will produce three units, International Brands, Branded Pharma and Allergan Medical. Actavis said in December it will invest $1 billion in research and development under a combined department led by Actavis’s C. David Nicholson.

"Although we are acting rapidly in announcing these appointments, we are making them following extensive discussions with [Pyott] and his executive leadership team,” he said. “We believe that by announcing the proposed structure of the combined organization our shareholders, customers and employee teams will better appreciate our commitment to create the most dynamic company in Growth Pharma and will share our confidence in seamless execution of this combination beginning on Day 1.”

BioSpace Temperature Poll
After Amgen Inc. said last week that it will close its South San Francisco facility acquired during its $10 billion buyout of Onyx Pharmaceuticals and will lay off 300 of Oynx’s 750 workers, BioSpace is wondering—will the number of mergers and acquisitions completed in 2014 mean a “streamlining” of biotech jobs in the Bay Area? Tell us your thoughts.

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