AbbVie (NYSE:ABBV) has announced the appointment of Robert A. Michael, its current president and chief operating officer, as the new chief executive officer (CEO). He will succeed Richard A. Gonzalez, who is retiring from his role as CEO after serving since AbbVie was formed in 2013. AbbVie was established on Jan 1, 2013, following Abbott Laboratories’ divestiture of its pharmaceutical division. Gonzalez will assume the role of executive chairman of the board of directors, effective Jul 1, 2024, when the transition takes place.
Robert Michael will also join the board of directors, effective Jul 1, 2024.
Over the past year, AbbVie’s stock has risen by 16.6%, compared to a 28.9% increase for the industry.
Robert Michael has been with AbbVie since its inception and has played a pivotal role in establishing the company’s financial planning organization, diversifying its business strategy, managing the transition through Humira’s loss of exclusivity, and supporting significant M&A activities, including the acquisitions of Allergan (2020), ImmunoGen, and the pending Cerevel Therapeutics transactions this year.
In December, AbbVie announced a definitive agreement to acquire neuroscience drugmaker Cerevel Therapeutics for $8.7 billion. This acquisition will bolster AbbVie’s neuroscience pipeline with Cerevel’s novel pipeline candidates being studied for a range of psychiatric and neurological disorders, including schizophrenia, Parkinson’s disease (PD), and mood disorders.
The entry of generic versions of AbbVie’s blockbuster immunology medicine Humira in Europe since 2018 and in the United States in 2023 has impacted revenues. However, AbbVie has successfully managed Humira’s loss of exclusivity by launching two other successful new immunology medicines, Skyrizi and Rinvoq.
AbbVie has introduced Skyrizi and Rinvoq across Humira’s major indications, along with a new indication, atopic dermatitis. These drugs have already contributed significant revenues, with $7.7 billion in 2022 and $11.7 billion in 2023. With approvals for many new indications, sales of these drugs are expected to surpass Humira sales. Skyrizi and Rinvoq are projected to collectively exceed Humira’s peak revenues by 2027, with combined sales (risk-adjusted) expected to exceed $27 billion by 2027.
Featured Image: Megapixl
Author Stephanie Bédard-Châteauneuf 