Johnson & Johnson announced Thursday that its chief executive officer, Alex Gorsky, will be stepping down in January. The company also announced that the vice-chairman of its executive committee, Joaquin Duato, will be taking over.
Apart from taking over as the company's new CEO, Duato will also be appointed as a member of its board of directors. Gorsky will officially step down from his position on Jan. 3, 2022.
Duato has been working with the company for more than 30 years in various capacities. He is also a board member of UNICEF USA, Hess Corporation, and the Tsinghua University School of Pharmaceutical Sciences.
In a prepared statement, Duato said he was "honored" to be appointed as Johnson & Johnson's new CEO. He said he is now "inspired" to play a key role in the global effort to improve human health, particularly as it faces significant challenges because of the pandemic.
Gorsky, who has been Johnson & Johnson's CEO for nearly 10 years, has been working closely with Duato within the company. He praised Duato's work within the company, crediting him with helping driving growth and profitability within its pharmaceutical and consumer health businesses. Gorsky also praised Duato for spearheading "significant technology transformations" within the company over the past year.
Gorsky said it was a great honor and privilege to have led the company for close to a decade. He said he would continue to serve and the company and its customers as its executive chairman.
During Gorsky's tenure with the company, Johnson & Johnson has made significant investments in research and development. The company spent nearly $12 billion in research and development and billions more in acquisitions to enhance its capabilities. This included acquiring biotechnology company Actelion for $30 billion in 2017 -- the company's largest-ever acquisition.
Gorsky's bet on oncology had greatly paid off, helping grow Johnson & Johnson's sales from just $2 billion in 2011 to more than $12 billion in 2020. Gorsky also was instrumental in leading the company out of significant challenges, including its legal problems because of its talcum powder products. The company is currently still facing lawsuits over allegations that its talcum powder products caused cancer.
