David E. I. Pyott Explained

David Edmund Ian Pyott
Birth Date:1953
Birth Place:London, U.K.
Occupation:Businessman

David Edmund Ian Pyott CBE (born 1953) was the CEO of Allergan, a pharmaceutical company from 1998 to 2015, when Allergan was acquired by Actavis.[1] In 2014 he was one of the 25 highest-paid CEOs in the United States.[2]

Early life

Pyott was born in 1953 in London, England. His parents were from Scotland; and, as a child, he lived in India, where his father worked in the sugar industry.[3]

Pyott received a Master of Arts degree from the University of Edinburgh in 1975 and a diploma in international and European law from the Europa Institute at the University of Amsterdam. He received a Master of Business Administration from the London Business School and an MS from the University College London in 1980.

Career

Pyott worked for Sandoz Nutrition at various jobs from 1980 until 1990. From 1990 to 1992, Pyott served as the general manager of Sandoz Nutrition in Barcelona, Spain. From 1992 until 1995, he was the president and chief executive officer of Sandoz Nutrition Corporation. In 1995 Pyott transferred from Sandoz and joined Novartis AG, upon the merger of Sandoz and Ciba Geigy where he was head of the Nutrition Division until December 1997.[4] On January 1, 1998, he joined Allergan, which at that time was a small eye care business.[4] As of 2014, Pyott was one of the longest tenured pharmaceutical CEOs.[5] Under his leadership Allergan grew from a small eye care business to an international pharmaceutical and medical device company that earns over $5 billion a year.[6]

In 1998, Pyott joined the board of Allergan and became chairman in 2001, ending his board tenure upon Actavis's acquisition of the company.[7] He was a member of the board of Avery Dennison from November 1999 until March 2020.[8] He served on the board of Edwards Lifesciences Corporation from 2000 to 2014[9] and was a board member of Pacific Life from 2005 until 2007.[10] [4] Pyott was chairman of California Healthcare Institute in 2003 and again in July 2012.[11] As of June 2024, Pyott serves as a vice president of the Ophthalmology Foundation, having previously served as president.[12] [13] He is a member of the board of the Pan American Ophthalmological Foundation,[14] and president of the advisory board of the Foundation of the American Academy of Ophthalmology.[15] [16] He also serves on the boards of BioMarin Pharmaceutical,[17] Alnylam Pharmaceuticals,[18] Royal Philips,[19] and Pliant Therapeutics.[20] He is chairman of the governing board of London Business School[21] and a member of the executive committee[22] and board of trustees of Caltech.[23] [24] He is also Hospitaller of the priory in the United States for the Order of St. John and a Commander of the Order, after his promotion by King Charles III in 2023.[25] [26]

Allergan acquisition

On April 21, 2014, Bill Ackman of Pershing Square Capital Management teamed up with pharmaceutical company, Valeant Pharmaceuticals International Inc, to make a run at acquiring Allergan.[27] Rejecting the unsolicited $46 billion offer, as CEO, Pyott defended his company.[28] He believed selling to Valeant would not create long-term value for Allergan's shareholders due to Valeant's historic reliance on cost-cutting. Pyott is known to value aggressive research and development for Allergan, which he said had enabled Allergan to launch several new products and increase annual sales by an average of 11% since 2011. The R&D and marketing spends address consumer needs while providing value for shareholders, as was seen with Botox. The rejection by Allergan, however, did not prevent Valeant and Pershing from pursuing the Botox maker further.[29]

Originally offering $48.30 per share, Valeant increased the cash portion of its offer to $58.30 per share.[30] Pyott and Allergan, standing tall on their beliefs, rejected the offer citing yet again Valeant's unsustainable business model.[31] As expected, this heated up the war between Pyott, Ackman and Valeant. In order to ward off the hostile takeover attempt, Allergan was courting other offers from companies with more sustainable business models.[32] On November 17, 2014, Allergan announced that they had agreed to a deal with Actavis plc for $66 billion, making it one of the world's largest drug makers by sales. Pyott's decision to move forward with Actavis was based on the company's impressive management structure and desire to keep more of Allergan's research and development operation intact. After the acquisition was finalized, Pyott elected not to join the combined company's board, but stayed on as chairman of The Allergan Foundation for a year.[33]

In July 2015, Actavis plc announced that the company adopted Allergan plc (NYSE: AGN) as the company name following the approval by Actavis shareholders on June 5.[34] The combination of the two companies created one of the world's top 10 pharmaceutical companies by revenue and a leader in a new industry model.

As of March 15, 2015, Valeant's stock crashed more than 50%.[35] A number of factors contributed to the collapse of Valeant, many of which validate Pyott's approach to business.[36] Since the acquisition attempt and the subsequent fallout, Pyott's sentiments regarding Valeant have been vindicated.[37] Some have even gone as far to call Pyott a “hero” for saving Allergan and its shareholders and fighting for what he believes in.[38] [39]

Honors and awards

Throughout his career, Pyott has collected a number of honors and awards for his philanthropic efforts and his leadership at Allergan.

External links

Notes and References

  1. Caleb Melby and Cynthia Koons for Bloomberg News. March 31, 2015 Ex-Allergan CEO Pyott Trades Stock for $534 Million Cash in Sale
  2. Web site: America's 25 Highest Paid CEOs. Forbes. 29 October 2014.
  3. Web site: Nash. Emily. Allergan's David Pyott His Coaching And Sharpened Focus Helped Revive Drugmaker. Investor's Business Daily. 29 October 2014. 3 October 2000. https://web.archive.org/web/20141029114558/http://news.investors.com/management-leaders-in-success/100300-350297-allergans-david-pyott-his-coaching-and-sharpened-focus-helped-revive-drugmaker.htm . 29 October 2014.
  4. Web site: David E. I. Pyott. Bloomberg. 8 June 2015.
  5. Web site: Hirsch. Abigail. Fireside Chat with Allergan CEO, David Pyott. BIOtechNOW. 29 October 2014. 2014-02-14. Day two of the 16th Annual BIO CEO & Investor Conference kicked off with a Fireside Chat featuring one of the longest tenured pharma CEOs, David E.I. Pyott, Chairman of the Board & Chief Executive Officer, Allergan..
  6. Web site: A Conversation with Allergan CEO David Pyott. California Healthcare Institute. 29 October 2014.
  7. Web site: Allergan CEO Pyott heading for the exits as Actavis finalizes buyout. Biopharma Dive. March 18, 2015.
  8. Web site: Avery Dennison Announces Change in Board Leadership Structure . Graphics Pro. March 9, 2020.
  9. Web site: Pyott Leaves Edwards Board. OCBJ. October 3, 2014.
  10. Web site: OC's Wealthiest. OCBJ. July 29, 2019.
  11. Web site: Yu. Jane. Pyott Named Next Chair of California Healthcare. Orange County Business Journal. 29 October 2014. July 19, 2012.
  12. Web site: Ophthalmology Foundation elects new board members and officers . Modern Retina. March 22, 2024.
  13. Web site: International Council of Ophthalmology : About the ICO : ICO Board and Advisory Committee. www.icoph.org. 2016-09-16. 8 June 2019. https://web.archive.org/web/20190608213822/http://www.icoph.org/about/ico_board_and_advisory_comittee.html. dead.
  14. Web site: PAAO – Pan-American Association of Ophthalmology. www.paao.org. 2016-09-16.
  15. Web site: Letter From the President. American Academy of Ophthalmology. March 31, 2023.
  16. Web site: Overview – American Academy of Ophthalmology. www.aao.org. 2016-09-16.
  17. Web site: Board of Directors : BioMarin. www.biomarin.com. 2016-09-16.
  18. Web site: Board of Directors – Alnylam. www.alnylam.com. 2016-09-16. https://web.archive.org/web/20160924162256/http://www.alnylam.com/who-we-are/board-of-directors/. 2016-09-24. dead.
  19. Web site: Supervisory Board – Our management – Company – About Philips. 2016-09-16.
  20. Web site: Board of Directors. Pliant. June 11, 2024.
  21. Web site: New Governing Body Chair for London Business School. London.edu. February 23, 2023.
  22. Web site: Board members. CalTech. June 11, 2024.
  23. Web site: Governance London Business School. en-GB. 2016-09-16.
  24. Web site: David Pyott Elected as New Caltech Trustee. en-GB. 2016-01-29.
  25. Web site: Order of St John. The Gazette. October 4, 2023.
  26. Web site: Priory officers and chapter members. SaintJohn.org. June 13, 2024.
  27. News: Ackman, Valeant team up to bid for Allergan. 2014-04-22. Reuters. 2016-09-16.
  28. News: Allergan Formally Rejects Valeant's $46 Billion Takeover Bid. Walker. Joseph. 2014-05-13. Wall Street Journal. 0099-9660. 2016-09-16.
  29. Web site: In Rejecting Merger Bid, Allergan Focuses on Strategy. Gelles. David. 12 May 2014 . 2016-09-16.
  30. Web site: Valeant Just Cranked Up Its Offer For Botox-Maker Allergan. . 2016-09-16.
  31. News: Allergan Rejects Valeant's Latest Takeover Bid. Benoit. David. 2014-06-10. Wall Street Journal. 0099-9660. 2016-09-16.
  32. News: Actavis Agrees to Buy Botox Maker Allergan. Rockoff. Jonathan D.. 2014-11-18. Wall Street Journal. 0099-9660. 2016-09-16.
  33. Web site: Old Allergan CEO Pyott won't join New Allergan's board FiercePharma. www.fiercepharma.com. 2016-09-16.
  34. Web site: Actavis plc is now Allergan plc. Allergan. 2016-09-16.
  35. Web site: Five Lessons Big Pharma Should Learn From Valeant's Collapse. Herper. Matthew. . 2016-09-16.
  36. Web site: Allergan's Attacks On Valeant Are Looking Eerily Prescient. Herper. Matthew. . 2016-09-16.
  37. News: McKinsey's fingerprints are all over Valeant. Gapper. John. 2016-03-23. Financial Times. 0307-1766. 2016-09-16.
  38. Web site: Valeant – Why Bill Ackman Is Scared. Investor. Uncommon Profit. 2015-11-09. en-US. 2016-09-16.
  39. News: Valeant Slumps Again After Rebutting Critical Report. Rockoff. Jonathan D.. 2015-10-22. Farrell. Maureen. Wall Street Journal. 0099-9660. 2016-09-16.
  40. Web site: Hall of Fame FCD – Forum for Corporate Directors, Orange County CA. fcdoc.org. 2016-09-16.
  41. Web site: David Pyott Donor Spotlight – American Academy of Ophthalmology. www.aao.org. 2016-09-16.
  42. Web site: UCI News – 2010 Medal. 2016-09-16.
  43. Web site: David Pyott UCLA Anderson School of Management. www.anderson.ucla.edu. 2016-09-16.
  44. The Best-Performing CEOs in the World. Harvard Business Review . November 2014 . 2016-09-16.
  45. Web site: United Cerebral Palsy Gala Nets $518K - Newport Local News. 2015-05-22. en-US. 2016-09-16.
  46. Web site: Chapman's 'American Celebration' brings back some of its best moments for the show's 34th edition. WINSLOW. JONATHAN. 9 November 2015 . en-US. 2016-09-16.
  47. Web site: Honorary Graduates in 2016 The University of Edinburgh. www.ed.ac.uk. 2016-09-16.
  48. Web site: Night Of Light: California Life Science Association (CLSA). Life Science Leader. December 12, 2016.
  49. Web site: David Pyott Elected as New Caltech Trustee. 2016-01-21.

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