David E.I. Pyott

David Edmund Ian Pyott (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]

David Edmund Ian Pyott
Born1953
London, U.K.
Alma materUniversity of Edinburgh
London Business School
University College London
OccupationBusinessman

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.[4]

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. He has been a member of the board of Avery Dennison since 1999. He served on the board of Edwards Lifesciences Corporation from 2000 to 2014 and was a board member of Pacific Life from 2005 until 2007.[4] Pyott was chairman of California Healthcare Institute in 2003 and again in July 2012.[7] Pyott currently serves as the president of the International Council of Ophthalmology Foundation,[8] member of the board of the Pan American Ophthalmological Foundation,[9] member of the advisory board of the Foundation of the American Academy of Ophthalmology,[10] Retina Global[11] and the American Glaucoma Society Foundation.[12] David also serves on the boards of BioMarin Pharmaceutical,[13] Alnylam Pharmaceuticals,[14] Royal Philips,[15] Avery Dennison[16] and as chairman of privately held Bioniz Therapeutics.[17] He is deputy chairman of the governing board of London Business School and a member of the board of trustees of Caltech.[18][19]

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.[20] Rejecting the unsolicited $46 billion offer, as CEO, Pyott defended his company.[21] He believed selling to Valeant would not create long-term value for Allergan's shareholders due to Valeant's historic reliance on cost-cutting.[21] 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.[21] The R&D and marketing spends address consumer needs while providing value for shareholders, as was seen with Botox.[21] The rejection by Allergan, however, did not prevent Valeant and Pershing from pursuing the Botox maker further.[22]

Originally offering $48.30 per share, Valeant increased the cash portion of its offer to $58.30 per share.[23] Pyott and Allergan, standing tall on their beliefs, rejected the offer citing yet again Valeant's unsustainable business model.[24] 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.[25] 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.[25] 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.[25] 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. [26]

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.[27] 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.[27]

As of March 15, 2015, Valeant's stock crashed more than 50%.[28] A number of factors contributed to the collapse of Valeant, many of which validate Pyott's approach to business.[29] Since the acquisition attempt and the subsequent fallout, Pyott's sentiments regarding Valeant have been vindicated.[30] Some have even gone as far to call Pyott a “hero” for saving Allergan and its shareholders and fighting for what he believes in.[31][32]

Honors and awards

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

  • Director of the Year Award; recognizing corporate directors for their outstanding dedication to the highest ideals of leadership in the boardroom – 2001.[33]
  • The honor of Commander of the Most Excellent Order of the British Empire (CBE) by Her Majesty the Queen for his contribution to British business excellence and management skills in the United States – 2006.[34]
  • University of California Irvine; The Medal, UCI's most prestigious honor – 2010.[35]
  • Moacyr Gold Medal for services to Brazilian ophthalmology – 2010.[34]
  • UCLA Anderson School of Management; Executive Leader of the Year – 2012.[36]
  • U.S. Marine Corps; Semper Fidelis Award – 2013.[34]
  • Harvard Business Review; 4th best-performing CEO in the World – 2014.[37]
  • United Cerebral Palsy Gala; Corporate Impact Award – 2015.[38]
  • Chapman University; Citizen of the Year Award – 2015.[39]
  • University of Edinburgh; Honorary Degree in Medicine – 2016.[40]
  • Chapman University; Honorary Doctor of Pharmaceutical Science – 2018.[41]

Philanthropy

In his first year as CEO of Allergan in 1998, Pyott created the Allergan Foundation. The Allergan Foundation strives to make a positive and lasting impact on the community.[42] They provide philanthropic support and lend involvement to organizations working hard to make the lives of individuals healthier and happier.[42] The foundation also strives to make their communities better places to live, now and in the future.[42] Because of his dedication to positive patient outcomes, Pyott continued his philanthropic efforts outside of Allergan as well. In 2015, he donated £4.3 million to his alma mater, London Business School.[43] His donation helped transform the future of the school and its ability to fulfill its vision of having a profound impact on the way the world does business.[43] To further his quest for driving positive patient outcomes, Pyott also established a personal foundation, the David & Molly Pyott Foundation, to help address the many issues in the eye care community.[44] On March 9, 2016, the foundation pledged $2 million to the American Academy of Ophthalmology.[44] When the donation was made, it was the largest gift ever contributed to the academy's foundation from a single individual.[44] The David E.I. Pyott Glaucoma Education Center will help speed online medical training in glaucoma treatment addressing a growing need in the world.[44]

Recognizing that more physicians must properly be trained to affect a greater number of positive patient outcomes, Pyott also donated to the University of Edinburgh for The David E.I. Pyott Master of Surgery in Clinical Ophthalmology Scholarship, awarding online distance learning Masters scholarships in the field of Ophthalmology for students from Africa, South Asia, Caribbean Islands, Pacific Islands, Central and South America.[45] The Pyott Foundation will donate $2 million to Orbis over a period of 3 years (2019- 2021) to further support Orbis's work in Zambia to strengthen eye health capacity and care.[46] Pyott is also the chairman of the privately held Bioniz Therapeutics helping treat immune-inflammatory diseases and cancer.[47]

  • Center for Oral History (8 November 2011). "David Pyott". Science History Institute.

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. "America's 25 Highest Paid CEOs". Forbes. Retrieved 29 October 2014.
  3. Nash, Emily (3 October 2000). "Allergan's David Pyott His Coaching And Sharpened Focus Helped Revive Drugmaker". Investor's Business Daily. Archived from the original on 29 October 2014. Retrieved 29 October 2014.
  4. "David E. I. Pyott". Bloomberg. Retrieved 8 June 2015.
  5. Hirsch, Abigail (2014-02-14). "Fireside Chat with Allergan CEO, David Pyott". BIOtechNOW. Retrieved 29 October 2014. 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. "A Conversation with Allergan CEO David Pyott". California Healthcare Institute. Retrieved 29 October 2014.
  7. Yu, Jane (July 19, 2012). "Pyott Named Next Chair of California Healthcare". Orange County Business Journal. Retrieved 29 October 2014.
  8. "International Council of Ophthalmology : About the ICO : ICO Board and Advisory Committee". www.icoph.org. Retrieved 2016-09-16.
  9. "PAAO – Pan-American Association of Ophthalmology". www.paao.org. Retrieved 2016-09-16.
  10. "Overview – American Academy of Ophthalmology". www.aao.org. Retrieved 2016-09-16.
  11. "Board – Retina Global". Retrieved 2016-09-16.
  12. "David E. I. Pyott, CBE" (PDF). Archived from the original (PDF) on 2016-09-20. Retrieved 2016-09-16.
  13. "Board of Directors : BioMarin". www.biomarin.com. Retrieved 2016-09-16.
  14. "Board of Directors – Alnylam". www.alnylam.com. Archived from the original on 2016-09-24. Retrieved 2016-09-16.
  15. "Supervisory Board – Our management – Company – About | Philips". Retrieved 2016-09-16.
  16. "Board of Directors | Avery Dennison". www.investors.averydennison.com. Archived from the original on 2017-06-14. Retrieved 2016-09-16.
  17. "Board of Directors – Bioniz Therapeutics". bioniz.com. Retrieved 2016-09-16.
  18. "Governance | London Business School". Retrieved 2016-09-16.
  19. "David Pyott Elected as New Caltech Trustee". Retrieved 2016-01-29.
  20. "Ackman, Valeant team up to bid for Allergan". Reuters. 2014-04-22. Retrieved 2016-09-16.
  21. Walker, Joseph (2014-05-13). "Allergan Formally Rejects Valeant's $46 Billion Takeover Bid". Wall Street Journal. ISSN 0099-9660. Retrieved 2016-09-16.
  22. Gelles, David. "In Rejecting Merger Bid, Allergan Focuses on Strategy". Retrieved 2016-09-16.
  23. "Valeant Just Cranked Up Its Offer For Botox-Maker Allergan". Retrieved 2016-09-16.
  24. Benoit, David (2014-06-10). "Allergan Rejects Valeant's Latest Takeover Bid". Wall Street Journal. ISSN 0099-9660. Retrieved 2016-09-16.
  25. Rockoff, Jonathan D. (2014-11-18). "Actavis Agrees to Buy Botox Maker Allergan". Wall Street Journal. ISSN 0099-9660. Retrieved 2016-09-16.
  26. "Old Allergan CEO Pyott won't join New Allergan's board | FiercePharma". www.fiercepharma.com. Retrieved 2016-09-16.
  27. "Actavis plc is now Allergan plc". Allergan. Retrieved 2016-09-16.
  28. Herper, Matthew. "Five Lessons Big Pharma Should Learn From Valeant's Collapse". Retrieved 2016-09-16.
  29. Herper, Matthew. "Allergan's Attacks On Valeant Are Looking Eerily Prescient". Retrieved 2016-09-16.
  30. Gapper, John (2016-03-23). "McKinsey's fingerprints are all over Valeant". Financial Times. ISSN 0307-1766. Retrieved 2016-09-16.
  31. Investor, Uncommon Profit (2015-11-09). "Valeant – Why Bill Ackman Is Scared". Retrieved 2016-09-16.
  32. Rockoff, Jonathan D.; Farrell, Maureen (2015-10-22). "Valeant Slumps Again After Rebutting Critical Report". Wall Street Journal. ISSN 0099-9660. Retrieved 2016-09-16.
  33. "Hall of Fame | FCD – Forum for Corporate Directors, Orange County CA". fcdoc.org. Retrieved 2016-09-16.
  34. "David Pyott Donor Spotlight – American Academy of Ophthalmology". www.aao.org. Retrieved 2016-09-16.
  35. "UCI News – 2010 Medal". Retrieved 2016-09-16.
  36. "David Pyott | UCLA Anderson School of Management". www.anderson.ucla.edu. Retrieved 2016-09-16.
  37. "The Best-Performing CEOs in the World". Retrieved 2016-09-16.
  38. "United Cerebral Palsy Gala Nets $518K - Newport Local News". 2015-05-22. Retrieved 2016-09-16.
  39. WINSLOW, JONATHAN. "Chapman's 'American Celebration' brings back some of its best moments for the show's 34th edition". Retrieved 2016-09-16.
  40. "Honorary Graduates in 2016 | The University of Edinburgh". www.ed.ac.uk. Retrieved 2016-09-16.
  41. "David Pyott Elected as New Caltech Trustee". Retrieved 2016-01-21.
  42. "The Allergan Foundation". The Allergan Foundation - To make the lives of individuals healthier and happier. Retrieved 2016-09-16.
  43. "London Business School announces landmark gift | London Business School". Archived from the original on 2016-09-20. Retrieved 2016-09-16.
  44. Ophthalmology, American Academy of. "David E.I. Pyott Foundation Endows $2 Million to the American Academy of Ophthalmology to Create Glaucoma Education Resource". www.prnewswire.com. Retrieved 2016-09-16.
  45. "The David E I Pyott Master of Surgery in Clinical Ophthalmology Scholarship | The University of Edinburgh". www.ed.ac.uk. Retrieved 2016-09-16.
  46. "Orbis Secures USD $2 Million Funding from the David and Molly Pyott Foundation to Strengthen Eye Health in Zambia". Retrieved 2019-07-27.
  47. "About Us – Bioniz Therapeutics". bioniz.com. Retrieved 2016-09-16.
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