Abbvie Announces New CEO, Bond Sell Off & OSE Immunotherapeutics Deal
AbbVie has announced Robert Michael, currently president and COO, will succeed Richard Gonzalez as CEO on July 1, moving into the role as executive chairman. The transition occurs as AbbVie faces significant market changes, notably biosimilar competition for its drug Humira.
Separately, Bloomberg reports that AbbVie plans to sell at least $13 billion in bonds to finance the acquisitions of ImmunoGen and Cerevel Therapeutics, with the deal set to be announced shortly. The move follows AbbVie's strategy of focusing on smaller deals to support growth over the next decade.
However, the company has recently secured a $713 million deal with OSE Immunotherapeutics for the chronic inflammation drug OSE-230, targeting ChemR23 to reprogram immune cells and reduce inflammation. This aligns with AbbVie's strategy to enhance its pipeline through smaller licensing deals amidst competition from its leading brand, Humira.
AbbVie today announced that its board of directors has unanimously selected Robert A. Michael, AbbVie's current president and chief operating officer, to succeed Richard A. Gonzalez as the company's chief executive officer (CEO). Mr. Gonzalez, who has served as CEO since the company's formation in 2013, will retire from the role of CEO and become executive chairman of the board of directors, effective July 1, 2024. Additionally, the board has appointed Mr. Michael as a member of the board of directors effective July 1, 2024.
"On behalf of AbbVie's board, I am extremely excited that Rob has agreed to serve as AbbVie's next CEO," said Richard A. Gonzalez, chairman and chief executive officer, AbbVie. "As a key member of the Executive Leadership Team, he has had a tremendous impact on AbbVie. From establishing our financial planning organization, to the development of our diversified business strategy, to successfully navigating the end of exclusivity for Humira in the U.S., Rob has been integral to AbbVie's impact since inception. Rob has also played an important role in key business development opportunities that have been critical to delivering on our long-term growth strategy, including the acquisitions of Allergan and ImmunoGen and the pending Cerevel Therapeutics transaction. I have known and worked with Rob for many years, and he has the experience, leadership capabilities and strategic vision to accelerate AbbVie's success well into the future."
"The board and I have been planning for a seamless CEO succession for some time. Now is the opportune time to hand the CEO role over to Rob," continued Mr. Gonzalez. "The business is performing very well and is in a strong position for the long term. Our pipeline contains multiple promising candidates to sustain our future strong growth. It has been a privilege and immensely gratifying to serve with all my AbbVie colleagues for the past 11 years growing AbbVie into what it is today, and I look forward to continuing to work with Rob as executive chairman of the board."
"The AbbVie board recognizes that CEO succession planning is one of our most important responsibilities," said Glenn Tilton, lead independent director, AbbVie's board of directors. "The company has been planning for the eventual succession for a long time and has been thoughtful and deliberate to ensure the right plan was in place for a potential successor. The board conducted a thorough process to identify the right leader for AbbVie's next chapter. It is a testament to the strength and depth of AbbVie's management team that we have the ideal internal candidate in Rob to assume the CEO position. The board has the highest confidence in Rob and looks forward to working with him to create meaningful value for our shareholders and all our stakeholders."
"All of us at AbbVie owe Rick an enormous debt of gratitude for his remarkable leadership over the past 11 years," continued Mr. Tilton. "Under his stewardship, AbbVie has generated a total return to shareholders of more than 700%, created over $250 billion in market valuation, grown our annual patient base to more than 60 million people in 175 countries, invested over $60 billion in R&D and nearly tripled annual revenue. We are thrilled that we will continue to benefit from Rick's experience, intellect and integrity on AbbVie's board of directors."
"I am honored to assume the CEO role for AbbVie, and I am excited about our company's bright future," said Robert A. Michael, president and chief operating officer, AbbVie. "Rick has been a tremendous leader for AbbVie and mentor to me personally. His legacy at AbbVie will be felt for years to come. I would like to thank the board for expressing its confidence in me, and I look forward to working with Rick and the entire board to deliver results for our patients, our employees, our shareholders and our communities."
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