German group Bayer is to announce today that the boss of its pharmaceuticals arm, David Ebsworth, is leaving after a disastrous year dominated by the failure of heart drug Baycol.
Mr Ebsworth, an Englishman, will be replaced by Wolfgang Plischke, who runs Bayer's US drugs business.
A Bayer spokesman confirmed the change last night but would not be drawn on the reasons: "We don't comment on personnel matters."
Bayer, best known for inventing aspirin, suffered the worst crisis in its 139-year history in August when it emerged that cholesterol lowering tablet Baycol, also known as Lipobay, had deadly side effects. Withdrawal of the product cost Bayer £600m and ensnared the company in a labyrinth of litigation.
Industry sources said it was likely that Mr Ebsworth was taking the blame for the debacle. There was a suggestion of a disagreement over his role after Bayer's imminent restructuring, which will make the healthcare arm a legally independent corporate unit.
It emerged yesterday that the drugs industry faces an inquiry by the US federal trade commission into allegations of unfair commercial tactics.
The FTC is investigating whether a number of drug companies are abusing the patent system to ward off cheaper generic rivals.
The FTC is said to be focusing on at least four cases in which drug manufacturers have inappropriately listed new patents over old drugs in the food and drug administration's so-called "orange book". A listing protects the makers of branded drugs from losing exclusive marketing rights.
The investigation is a fresh blow for the drug companies that have already seen their share prices depressed by a wave of patents on best selling drugs that are due to expire. Once competition is introduced the price of the branded drugs plummet.
The threat of generic drugs flooding the market has been a main driver behind the consolidation currently taking place in the industry.
An FTC spokeswoman declined to comment on individual firms but said an investigation into the orange book has been launched. "We believe there are issues here and we are looking at them", she said.
Generic drugs makers complain that big pharmaceuticals companies claim new patents when only tiny changes have been made to the ingredients or to the recommended use of long-established drugs.
The inquiry includes Bristol-Myers' attempts to protect its market for breast cancer drug Taxol. Officials are also looking into whether the company misrepresented the patent on high anxiety drug BuSpar to the FDA or the patent office.
Paxil, an antidepressant made by Glaxo SmithKline, is also under the microscope. The company said it believes the patent is properly listed.
Biovail, is being investigated for its patent on heart drug Tiazac. The company is already engaged in a dispute with Andrx, a generic drugs firm.
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