Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) CEO Kare Schultz will step down at the end of next month, sooner than expected.
Teva today announced the appointment of Richard Francis as president and CEO as of January 1, 2023. The company added that in order to facilitate an orderly transition, Kåre Schultz and the Teva board of directors have mutually agreed that Schultz will retire from December 31, 2022. Schultz joined Teva in November 2017, and his main task has been to streamline the company and cut its debt.
Francis, 54, has 25 years of experience as a pharmaceutical executive, including five years as Sandoz CEO and a member of the Novartis executive. Prior to his role at Sandoz, he was a senior executive at Biogen for 13 years. He is currently CEO of Purespring Therapeutics, a pioneering gene therapy company focused on transforming the treatment of kidney diseases, and CEO of Forcefield Therapeutics, a pioneer of best-in-class therapeutics to protect heart function. He is also an operating partner for Syncona Investment Management Limited.
Francis has signed a three-year contract with Teva, with an automatic option to extend it for a further three years. He will receive an annual salary of $1.6 million and bonuses of between 150% and 200% of his salary based on meeting targets. Capital incentives could reach $9 million - 70% in blocked shares on meeting target and 30% in regular blocked shares as well as other incentives. Francis will also receive $5 million in blocked shares, redeemable after one year, as a signing-on fee. Like Schultz, Francis will manage the company from Israel and will receive financial assistance to help in his relocation.
Schultz said, "It has been a great privilege to serve Teva as its CEO since 2017, and to work with our dedicated and talented team to improve the lives of patients. We have positioned Teva as a leader in both our specialty and generics businesses, built a strong financial and operational foundation and enhanced our portfolio and pipeline. This is the right time for a transition, and Richard’s proven track record in the industry makes him the right person to serve as Teva’s next CEO."
Teva chairman Dr. Sol Barer said, "On behalf of the entire Board, I would like to thank Kåre for his dedication and contributions to Teva over the last five years. Under Kåre’s leadership, we have stabilized the business and undergone a significant operational transformation across our international footprint. The company is now well positioned for an exciting future and, by leveraging Richard’s compelling track record of growing businesses in the life sciences, biologics and generic drug sectors, his entrepreneurial and pragmatic leadership style and emphasis on a collaborative and innovative culture, the board and I are confident that Teva will build on this solid foundation. As a global enterprise, we look forward to furthering our mission to provide much needed medicines to even more patients around the world under Richard’s leadership. The board is delighted to have found the ideal leader for the next phase in Teva’s exciting journey to return to growth and leadership."
Francis said, "I have long been impressed with the value Teva provides to patients globally and I am honored to take on the role of leading this extraordinary company into the future. I look forward to leveraging my background and years of pharmaceutical experience to build on Teva’s strong fundamentals and to write the next exciting chapter for Teva, focusing on building a solid pathway to deliver long-term growth. I continue to see a bright future ahead for the Company and look forward to working closely with the Board, management team and talented employees to continue driving value creation for patients, employees, shareholders and other stakeholders."
Published by Globes, Israel business news - en.globes.co.il - on November 21, 2022.
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