Generic drugmaker Viatris on Monday named Scott Smith as its new CEO beginning April 1, shaking up its leadership as it advances into a new phase of an ongoing business revamp.
Smith will replace current CEO Michael Goettler, who will help Smith transition into the role between now and April.
Formerly the chief operating officer of Celgene, Smith oversaw development of the company’s inflammatory disease drug Otezla, which was later sold to Amgen as part of Bristol Myers Squibb’s 2019 acquisition of Celgene. He joined biotechnology company BioAtla as president following his departure from Celgene in 2018.
Smith has also served on Viatris’ board of directors since December 2022.
As CEO, he’ll be joining a company that’s still in flux following its creation via the merger of Mylan and Pfizer’s generics business Upjohn. Since that 2019 deal, the company has laid off staff and shut down factories, while working to reshape the drugs business it inherited. Last year, it sold off its biosimilar drug business and acquired two companies to build up an ophthalmology division.
Alongside Smith’s appointment, Viatris announced fourth quarter earnings that showed the company has made further progress addressing its debt, having paid down $1.2 billion in the fourth quarter to bring 2022’s total payments to $3.3 billion.
While sales have declined since 2021, Viatris aims to return to growth beginning in 2024. According to Jefferies analyst Glen Santangelo, new drug launches could earn the company $500 million in revenue this year.
“Despite all of the moving pieces and ongoing activities, we expect to deliver a solid 2023 and we remain confident in our outlook for 2024 and beyond,” Viatris CFO Sanjeev Narula said in a statement. “We expect to significantly increase the return of capital to shareholders in 2023 while continuing to pay down debt.”
Shares for Viatris rose slightly to trade around $11.60 apiece Monday.