By Bhanvi Satija
(Reuters) – U.S. drugmaker Eli Lilly (NYSE:) said on Monday it has appointed insider Lucas Montarce as its new Chief Financial Officer, effective immediately, months after former CFO Anat Ashkenazi resigned to join Google parent Alphabet ( NASDAQ:).
This management change comes at a crucial time for Eli Lilly, as the company invests billions to expand manufacturing capacity and meet rising demand for its diabetes and weight-loss drugs, Mounjaro and Zepbound.
Lilly and Danish rival Novo Nordisk (NYSE:) are leaders in the fast-growing market for new weight-loss drugs, which some analysts predict could top $150 billion by the early 2030s.
The company’s shares were flat in afternoon trading. The Indianapolis-based drugmaker is already the most valuable healthcare company in the world, largely due to the high demand for its weight-loss treatments.
Under Ashkenazi’s leadership, Lilly’s stock grew nearly fourfold. “I think a lot of people were quite surprised by the departure of the previous CFO,” said Dave Wagner, portfolio manager at Aptus Capital Advisors, which owns about 30,000 shares of Lilly, according to a regulatory filing.
Montarce, with Lilly since 2001, has held senior financial positions, including for research laboratories and international divisions.
“Lucas was very well prepared to probably be the next CFO,” Wagner said, noting that Montarce’s experience was similar to Ashkenazi’s within the company.
Ashkenazi also served as chief financial officer of Lilly Research Laboratories before being appointed CFO of the drugmaker in February 2021. Wagner said that while it was difficult to compare the two executives, Montarce has “big shoes” to fill.
In his new role, Montarce will serve as both CFO and Executive Vice President, with a base salary of $1 million and an annual bonus of $1 million.
