Gilead Sciences, the Foster City, Calif.-based drugmaker under pressure for its hepatitis C drug pricing, announced last week that longtime CEO John Martin will step down from that role, becoming executive chairman of the company.
Martin has been CEO for the past two decades. He also served as chairman of the board for the last seven years. After Martin steps down on March 10, John Milligan, the company's president and COO, will be promoted to CEO and join the company's board of directors.
Recently, Gilead has been under intense scrutiny over the price of Sovaldi, the company's $1,000 per pill hepatitis C drug. State and federal officials have warned that their drug coverage programs will have significant difficulty paying for Solvadi, and a recent U.S. Senate report found that the company focused on maximizing revenue even as its own analysis showed a lower price would allow more patients to be treated.
“Under Martin's stewardship, the company has developed and delivered therapeutic advancements to millions of people around the world. His legacy is clear—and the vision he has set will continue with his contributions as executive chairman,” said John Cogan, the company's lead independent director.
Gilead reported $8.2 million in sales in the third quarter, up 37.6% from the year before, while profits were up 68.4% at $4.6 million. The company said sales of Sovaldi were down, due primarily to an increase in sales of the newer and more-expensive Harvoni, a hepatitis C drug that costs $94,500 per treatment.
