AbbVie: Robert Michael's Appointment as CEO Suggests Continuity of Business Strategy

AbbVie’s announcement that Robert Michael has been appointed to succeed Rick Gonzalez as CEO supports the continuity of the company’s overall strategy, and we don't expect any changes to our fair value estimate. Gonzalez is 70 years old, so we believe his retirement from the top spot is natural. Michael brings excellent experience to the CEO role, having spent more than 30 years at AbbVie and former parent Abbott in many leadership positions, including chief financial officer and chief operating officer. We expect the transition, which will occur July 1, to be seamless. Gonzalez will continue with AbbVie as executive chair of the board, continuing to provide higher-level oversight of the company. Under Gonzalez’s leadership, AbbVie navigated one of the industry’s largest patent losses (immunology drug Humira) and emerged as a well-positioned drug company with a wide economic moat. We expect continued successful development and marketing of next-generation drugs with Michael as CEO.