WHITEHOUSE STATION, N.J., June 9 -- Pharmaceuticals giant Merck & Co. Inc. named Thursday veteran Becton Dickinson & Co. executive Raymond V. Gilmartin as president and chief executive officer, effective June 16.
Gilmartin, 53, will succeed P. Roy Vagelos as chairman in November when Vagelos turns 65.
Merck had been expected to name Martin Wygood as CEO and Vagelos' successor until last month when Wygood announced his resignation from Merck. Wygood had sold his Medco Containment drug distribution firm to Merck last year for $6 billion but decided that he lacked the 'total commitment' to head Merck.
The selection of Gilmartin came from Merck's board, which had formed a search committee headed by Bruce Atwater and including Lawrence A. Bossidy, William G. Bowen, Ruben F. Mettler and Richard S. Ross.
'I am delighted by the selection of Raymond Gilmartin as my successor,' Vagelos said. 'He has proven abilities as a strategic thinker and marketer, having guided Becton Dickinson's response to the forces of managed care which affected the medical supply industry before they affected the pharmaceutical industry.'
Gilmartin has worked for Becton Dickinson, a major medical supplies producer, since 1976 and was named senior vice presdent and executive vice president in 1983. He was named president in 1987 and CEO two years later.
Gilmartin has been credited with expanding Becton Dickinson's business into foreign markets, doubling sales over the past decade.
Gilmartin faces the challenge of trying to continue inteegrating Merck, the nation's largest pharmaceutical company, with Medco, the largest prescription drug management company.
The companies announced their deal in July in the face increasing pressures on healthcare companies to cut costs under the Clinton Administration reform plan.
Medco rose to prominence in recent years through providing companies with the ability to aggressively cut costs for employees and retired workers with chronic medical conditions requiring large orders of medicine. Medco also developed the practice of mailing prescriptions directly to retirees, cutting overhead, leading to demands discounts from drugmakers.
Merck is on track for 1994 revenues of $14 billion. Wall Street analysts have expressed some concerns about the premium it paid for Medco, which reportedly considered merging with Bristol-Myers before deciding to go with Merck.
