J&J CEO Gorsky to step down, company veteran to lead in 2022

FILE - In this Tuesday, Oct. 25, 2016, file photo, Joaquin Duato attends the fourth annual Save the Children Illumination Gala at The Plaza Hotel in New York. Johnson & Johnson said late Thursday, Aug. 19, 2021, will replace Chairman and CEO Alex Gorsky with Duato starting next year. (Photo by Charles Sykes/Invision/AP, File) (Charles Sykes)

Johnson & Johnson will replace Chairman and CEO Alex Gorsky with another veteran company executive starting next year.

The worldā€™s biggest maker of health care products said late Thursday that Joaquin Duato will become CEO and a member of the companyā€™s board of directors on January 3.

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Duato, 59, currently serves as vice chairman of J & Jā€™s executive committee, which involves working with the companyā€™s pharmaceutical and health sectors and overseeing its global supply chain.

Duato, a dual citizen of Spain and the United States, has been with Johnson & Johnson for more than 30 years, the company said.

Gorsky, 61, has served as chairman and CEO since 2012 and will become executive chairman of the board.

He said in a prepared statement from the company that the timing was right for his decision, both for the company and personally, ā€œas I focus more on my family due to family health reasons.ā€

J&J reported a 73% jump in second-quarter profit last month, driven by strong sales growth as hospitals and other parts of the health care industry rebounded from COVID-19 pandemic slowdowns the previous year.

The New Brunswick, New Jersey, company made more than $6 billion in the second quarter but received little help from its one-shot COVID-19 vaccine, which brought in just $164 million in sales. The vaccine ā€” one of three approved for use in the United States ā€” has been plagued by concerns about some very rare side effects and the temporary shutdown of a contract manufacturerā€™s factory due to contamination problems.

Gorsky, who joined Johnson & Johnson in 1988, oversaw the companyā€™s biggest-ever acquisition, a $30-billion deal for Swiss biopharmaceutical company Actelion that was completed in 2018.

The company also noted that investment in research and development has jumped more than 60% during Gorskyā€™s tenure to $12 billion last year, with oncology being a focus.

Shares of J & J gained $1.13 in Friday morning trading, climbing to $179.70 while broader indexes also rose slightly. The stock price has climbed more than 12% so far this year.


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