Abbott Details Management Team for Spinoff Company
Abbott Details Management Team for Spinoff Company [Chicago Tribune]
From Chicago Tribune (IL) (June 6, 2012)
June 06--Abbott Laboratories has revealed more details of its plan to spin off its proprietary pharmaceutical unit into a separate publicly traded company later this year.
In a first-draft filing on Monday with the U.S. Securities and Exchange Commission, Abbott said it will pluck a team of in-house executives to lead AbbVie Inc., which will be based at 1 North Waukegan Road in North Chicago, about a mile south of the massive Abbott campus.
As the company previously announced, Richard Gonzalez, the chief of Abbott’s pharmaceutical division, will serve as chairman and chief executive of the new company. He will be surrounded by a group of familiar faces in the executive suite, all of whom will migrate to AbbVie after the spin.
- Abbott’s vice president of licensing and acquisitions, William Chase, will serve as AbbVie’s chief financial officer.
- Laura Schumacher, Abbott’s general counsel, will assume the same position at AbbVie.
- John Leonard will be AbbVie’s senior vice president of pharmaceutical research and development, the same position he holds at Abbott.
- Carlos Alban, Abbott’s senior vice president of proprietary pharmaceutical products, will take the same position at the new company.
- Timothy Richmond, Abbott’s divisional vice president and compensation and benefits will serve as chief human resources officer for AbbVie.
The company also said it plans to pay an unspecified dividend to investors, who will gain a tax-free distribution of AbbVie shares once the spin is complete.
In a letter to investors that accompanied the filing, Abbott CEO Miles White, who will remain with Abbott Laboratories, said AbbVie is a high-margin business with an intense research focus. According to the filing, the pharmaceutical business posted gross margins of 73.4 percent in 2011, up from 72.5 percent in 2010 and 71.5 percent in 2009.
Profits in the segment in 2011 were $3.4 billion on $17.4 billion in revenue. The blockbuster anti-inflammatory drug Humira led the way, posting sales of nearly $8 billion.
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Posted: June 2012