Johnson & Johnson CEO Alex Gorsky will step down in January, the company announced Thursday. Joaquin Duato, Vice Chairman of J&J’s executive committee will be appointed as the company’s next CEO effective January 3, 2022.
Gorsky, 61, who served as J&J CEO and Chairman since 2012, will become Executive Chairman at the time, according to the company statement.
Duato, who is a J&J veteran, served in a variety of roles across its business segments during his 30-year tenure. He also sits on the boards of Hess Corporation, UNICEF USA, and Tsinghua University School of Pharmaceutical Sciences.
“As the world continues to face significant health challenges, including the ongoing pandemic, I am inspired by Johnson & Johnson’s opportunity to play a key role in meaningfully improving the global trajectory of human health,” Duato said.
Gorsky said in a statement that it was an honor to lead the company.
It was at Gorsky’s helm that J&J witnessed tremendous growth in the consumer health sector. With the help of several technological advances it was able to develop Covid-19 vaccine, as well as breakthroughs for treating diseases like Ebola and HIV. He also led the company through several crises that plagued its business, including thorny opioid and talcum-powder lawsuits. In 2020, the company said it would stop selling the product. J&J is still braving the impact of pandemic that has upended factories, offices and labs while it pursued a vaccine for Covid-19.
The family’s health issues prompted Gorsky to step down, he said in an interview.
“In spite of the tremendous challenges we faced with Covid-19, I could not be more optimistic about the future of healthcare and the important role that J&J will play going forward,” Mr. Gorsky said. “I have the utmost confidence in Joaquin to lead Johnson & Johnson as the Company’s next CEO. Over our more than 25 years of working together, he has always demonstrated a passion for solving complex medical and business challenges.”
Under J&J’s new CEO, the company will follow the same course it would have if Gorsky had stayed in the job. Duato will face several challenges that Gorsky hasn’t yet resolved, including the lawsuits alleging J&J’s talcum-powder causing cancer or mesothelioma as well as reports of side effects of the Covid-19 vaccine.
The New Brunswick, N.J.-based company said it made $23.3 billion in sales in its last quarter’s earnings report. It netted $6.3 billion, an adjusted $2.48 per share.
