AbbVie Inc.’s founding CEO Richard Gonzalez will step down July 1, the drugmaker said Tuesday, and will be replaced by the company’s current president and chief operating officer, Robert Michael.
Gonzalez, who has been AbbVie’s chief executive since the company’s formation in 2013, will become executive chair of the board of directors, the company said.
The leadership shakeup comes as AbbVie is contending with new, lower-cost competition for its blockbuster autoimmune drug Humira and is closing some major acquisitions. AbbVie said last week that it had closed its acquisition of cancer-treatment maker ImmunoGen, and the company is working to close its acquisition of neuroscience-focused Cerevel Therapeutics Holdings Inc.
CERE,
With Humira, AbbVie is dealing with one of the industry’s biggest losses of exclusivity, and Gonzalez in a statement Tuesday credited Michael for his role in navigating that transition. Michael has also played a key role in business development and has been “integral to AbbVie’s impact since inception,” Gonzalez said.
Gonzalez discussed the succession planning on a call with analysts early this month, saying the transition would come when the company has navigated the Humira loss of exclusivity and “the rest of the business is performing at a high level.”
AbbVie has been planning for the CEO succession for a long time and “has been thoughtful and deliberate to ensure the right plan was in place for a potential successor,” lead independent director Glenn Tilton said in a statement Tuesday.
Michael previously served as AbbVie’s chief financial officer and vice chair before becoming chief operating officer in 2023.
AbbVie shares
ABBV,
gained 0.5% Tuesday morning and are up 15.1% in the year to date, while the S&P 500
SPX
has gained 4.2%.
This story originally appeared on Marketwatch
