American Home Products Names CEO

American Home Products Corp. named Robert Essner its chief executive, replacing John Stafford, the attorney who tried and failed three times to engineer a big merger for the drug maker. Stafford will remain as chairman. Essner, 53, will retain his position as AHP president and will replace Stafford as CEO on May 1. Essner joined Madison, N.J.-based AHP in 1989 and currently runs the company’s global pharmaceutical business. The move had been expected. “It has been assumed for a while that Stafford would depart with a flare and find a buyer or merger partner, but those consolidation efforts did not come to pass and were a disappointment,” said David Saks, chief investment officer for SG MedScience Fund. AHP tried to merge with Monsanto Co., SmithKlineBeecham and Warner-Lambert. All three merged with other firms. However, Stafford was instrumental in the 1989 acquisition of A.H. Robins, which makes over-the-counter medications, and the 1994 purchase of American Cyanamid, which makes crop-protection products such as herbicides. AHP shares fell $1.70 to close at $60.20 on the New York Stock Exchange. Their 52-week trading range is $65.25 to $40.50.