Quintiles CEO Tom Pike will have an operating role as president of research and development solutions after the company merges with IMS Health, but Chief Operating Officer Kevin Gordon will be departing after the two companies combine.
Pike’s new role will include heading the core contract research organization, or CRO, operations, according to the two companies’ announcement of key executive positions released Monday. CROs help drug companies conduct clinical trials of experimental drugs and analyze the results.
When the so-called merger of equals between Durham-based pharmaceutical services giant Quintiles and IMS Health, a healthcare information technology headquartered in Connecticut, was announced in May, Pike was named vice chairman of the combined board of directors but no operating role was mentioned.
In his new role Pike, who has been CEO of Durham-based Quintiles since 2012, will report directly to Ari Bousbib, who is chairman and CEO of IMS and will have the same roles at the combined company.
Quintiles’ board of directors was so worried about losing Pike after the merger is completed that they agreed to pay him $9.5 million in cash plus stock valued at $7 million if he remained with the combined business through the end of 2017.
Quintiles spokesman Phil Bridges and IMS spokesman Tor Constantino declined to expand on Monday’s announcement, including questions about the overall scope of Pike’s new role.
Gordon, who was named Quintiles’ chief operating officer in October 2015 after five years as chief financial officer, will resign when the merger is consummated, the companies disclosed in documents filed with the Securities and Exchange Commission. The merger is expected to be completed before the end of the year.
Other top Quintiles executives who will remain with the combined business are:
▪ Michael McDonnell, chief financial officer, will be executive vice president and CFO of the combined company.
▪ James Erlinger, executive vice president and general counsel, will have the same role after the merger.
▪ Scott Evangelista, president of integrated healthcare services, which helps drug companies market their products after they win regulatory approval, has been named president of the contract sales organization.
In addition to the four Quintiles executives named to posts with the combined company, four IMS executives also were assigned roles at Quintiles IMS.
Trudy Stein, vice president of administration and chief of staff to the CEO at IMS, will be executive vice president and chief human resources officer. Kevin Knightly, senior vice president of information offerings, will be president of information and technology solutions.
Also, Jose Luis Fernadez, senior vice president of global services, will be president of global services. And Jon Resnick, vice president and general manager of real-world evidence solutions, will be president of real-world insights.
The two companies also unveiled the board of directors of the combined company – six directors named by each company – on Monday.
In addition to Quintiles founder Dennis Gillings, who is lead director, and Pike, the vice chairman, the other Quintiles directors who are joining the combined board are outside directors.
They are: John P. Connaughton, Jack M. Greenberg, Michael J. Evanisko and John M. Leonard. Greenberg, the former chairman and CEO of McDonald’s, currently is chairman of Quintiles’ board.