- Push-out Score determined
- After about a year and a half in the position
- Thanks for Stewart
- Chirag Patel and Chintu Patel taking over
- Stewart kept it short and said 34 words
(exechange) — Bridgewater, New Jersey, August 5, 2019 — Rob Stewart, chief executive of Amneal, leaves. As announced by Amneal Pharmaceuticals Inc. in a news release and in a regulatory filing published on Monday, August 5, 2019, Robert A. (Rob) Stewart has left his post as Chief Executive Officer at the pharmaceutical company after about a year and a half in the role, effective August 2, 2019.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 7.4 years, according to data compiled by exechange. Only 13 percent of the CEOs who departed over the past 12 months left their position within two years, and 24 percent left their position within three years.
Rob Stewart’s duties as CEO will be taken over by Chirag Patel and Chintu Patel, Co-Founders of Amneal Pharmaceuticals, Inc., as Co-Chief Executive Officers.
“Return to growth and maximize shareholder value”
Rob Stewart’s departure from the CEO post is explained as follows. Ted Nark, an independent director of the Board, said: “The Board believes there are no better executives to help Amneal return to growth and maximize shareholder value than the operators who built it. Recent industry headwinds and increased competition continue to put pressure on the Company. In order to succeed in today’s environment, Amneal must move decisively and prioritize its key strategic initiatives that will drive value for our shareholders. Chirag and Chintu possess both the leadership skills and the requisite strategic, operational, manufacturing and R&D expertise to execute on these efforts.”
Precise information regarding Rob Stewart’s future plans was not immediately available.
Amneal said: “Paul Bisaro and Rob Stewart have resigned as Executive Chairman, and President and Chief Executive Officer, respectively, and have stepped down from the Board. Mr. Stewart will serve as an advisor to the Company through a transition period.”
Amneal further said: “The leadership transition follows the resignations of Robert Stewart from his positions as President and Chief Executive Officer and as a director, Paul M. Bisaro from his position as Executive Chairman and as a director and each of Robert L. Burr, Dharmendra “DJ” Rama and Janet S. Vergis as directors.”
Amneal further said: “On August 3, 2019, the Board appointed Messrs. Chirag Patel and Chintu Patel as Co-Chief Executive Officers and Chirag Patel as President, effectively immediately.”
Amneal added: “On August 2, 2019, Mr. Stewart resigned as the Company’s President and Chief Executive Officer and as a member of the Board, effective immediately.”
“None of the resignations were based on any disagreement”
“None of the resignations were based on any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices,” Amneal said.
Share price decline
The announcement follows a decline in Amneal Pharmaceuticals, Inc.’s share price of 87% since September 2018.
In the position of CEO since 2018
Rob Stewart became CEO of the Company in January 2018.
Following his resignation, Stewart will serve as an advisor to the Company to assist in transitional matters through November 2, 2019.
Robert A. Stewart has served as the Company’s President and Chief Executive Officer and as a member of the Company’s Board of Directors since the Combination, and from January 25, 2018 to the completion of the Combination, as Chief Executive Officer of Amneal.
Prior to joining Amneal, he held several leadership positions at Allergan plc, including Executive Vice President and Chief Operating Officer, from May 2016 to December 2017, President, Generics and Global Operations, from March 2015 to May 2016, Chief Operating Officer, from July 2014 to March 2015, and President, Global Operations, from August 2010 to July 2014.
He previously served as Senior Vice President, Global Operations at Watson Pharmaceuticals from 2009 to August 2010 and held various positions with Abbott Laboratories, Inc. (NYSE: ABT), a multinational healthcare company, from 2001 until 2009 where he most recently served as Divisional Vice President, Global Supply Chain, Quality Assurance and prior to this position served as Divisional Vice President for U.S./Puerto Rico and Latin America Plant Operations.
Prior to joining Abbott Laboratories, Inc., he worked for Knoll Pharmaceutical Company from 1995 to 2001 and before that Hoffman La-Roche Inc.
Stewart has been the board chair of the Association for Accessible Medicines since January 2019. Stewart has been a North American Manufacturing board member since September 2016, and a member of the Fairleigh Dickinson University Board of Trustees since June 2017.
He earned his Bachelor’s degree in Business Management and Finance from Fairleigh Dickinson University.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to Amneal and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 32.2019 ($).