August 15, 2014
Corporate Executive of the Year: Kenneth Frazier Shares Prescription For Growth
Counseled by the venerable Merck Chairman and CEO Dr. P. Roy Vagelos, among others, who helped him “get out of my comfort zone,†Frazier accepted a position at Merck in 1992. During his tenure as general counsel, Frazier cemented his reputation for his grace-under-pressure approach to problem-solving as he led the company through thousands of lawsuits regarding the alleged harmful effects of the painkiller Vioxx. Kuhlik, who was hired by Frazier to serve as associate general counsel at the time, remembers witnessing the development of Merck’s unflappable leader: “He was an absolute rock. Two of the real strengths that I think he has came through for me there, and he’s applied them elsewhere. One is that he’s absolutely fearless. He will not back down from a challenge and will do everything that it takes to succeed. That’s combined with a remarkable set of analytical skills. He saw how the pieces would fit together and what needed to happen in order to achieve the objectives.â€
That can also be said about his humanitarian approach to business.
There’s a bronze sculpture in Merck’s lobby of a blind African man being led by a boy along the bank of a river. When Frazier looks at the statue, entitled “Sightless Among Miracles,†he beams with pride. It commemorates the 25th anniversary of Merck’s Mectizan Donation Program which started in 1987–the longest-running initiative and public—private partnership of its kind–to treat millions in African and South American countries who suffered from the parasitic disease river blindness. In December 2007, Merck announced a contribution of $25 million over eight years as part of an initiative with the World Bank to raise about $50 million to help eliminate the disease in Africa. The World Bank has raised the remaining $25 million, providing all the funding necessary for 28 African countries affected by river blindness to develop self-sustaining Mectizan distribution programs by 2015.
That type of commitment fused with Frazier’s own sense of humanity has led to the creation of Merck for Mothers, a 10-year, $500 million program that seeks to reduce maternal mortality. The company recently partnered with Women in the World to raise awareness and promote treatment. Working closely with the World Health Organization, Frazier and his team took the effort a step further by seeking to develop medical solutions. “Scientifically, we are very excited about working on an opportunity to take the drug, Carbetocin, which is a very good drug but needs to be refrigerated. It’s commonly used for this kind of hemorrhaging,†he explains. (A leading cause of maternal mortality is post-partum hemorrhage.) “We’re looking to make a heat-stable version of that drug which can be used in the field. Obviously, if you have to refrigerate it, it’s not of use in [parts of] India and sub-Saharan Africa, where refrigeration isn’t available,†he adds.
He expends the same energy on projects not related to Merck. For instance, he and his wife, Andréa, are part of the founding board of Cornerstone Christian Academy, a school serving roughly 250 children from one of Philadelphia’s poorest census tracts. “Our goal as a school is to provide a first-rate education in the context of Christian upbringing so that the children can gain not only the academic skills they’re going to need to compete in the world, but also a sense of who they truly are and of their responsibilities to their fellow humans. I think they could be future leaders of Merck. They could be future leaders of this country,†Frazier says. “My life story, if it has any meaning, based on my father’s beliefs, means that being born poor doesn’t mean that you’ll always end up there. Your story isn’t written. You get to write that story. You get to determine your future. â€
–Additional reporting by Richard Spiropoulos