Polynovo shares have slumped further in an overall day of horrors for the ASX. Pic via Getty Images
Health & Biotech
Polynovo (ASX:PNV) CEO Swami Raote will leave the building following last week’s revelations of corporate governance and management issues engulfing the wound-healing company.
Technically, he’s still in the company’s employ until June 10 2025, but steps down as CEO immediately.
On Friday the company said it had “requested” that Raote step down, but the parties had – and have – failed to reach an agreement.
The company said “after careful consideration” the board concluded a CEO change was “in the best interests of Polynovo at this time and that new leadership is required to continue the company’s growth.”
The boardroom drama follows reports in The Australian earlier last week about allegations of improper behaviour on the part of chairman David Williams, including bullying of Raote and chief financial officer Jan Gielen.
In an after-market disclosure on Friday the company acknowledged that last October it had engaged two senior lawyers to probe “certain interactions between the chair and some management team members”.
The lawyers were tasked with “provid[ing] the board with their recommendations as to the ongoing working arrangements and professional relations between the chair and management.”
The board also engaged prominent company director Lindsay Maxsted to advise on “specific governance matters, including on the interaction between board members and group executives.”
The company also has hired executive search firm Spencer Stuart to “assist with skills assessment and succession planning across the entire board”.
In the meantime, director Dr Robyn Elliott becomes acting CEO.
After Monday’s attempt at recovering, Polynovo shares this morning were trading around 9% lower amid an overall market rout.
The shares plunged 13% after Friday morning’s sparse initial disclosure of confidential termination negotiations with Raote.
Polynovo shares have now lost 40% of their worth since February 24, when investors shunned the company’s ostensibly sound half-year results.
Some boardroom wound healing could salve the pain.
Meanwhile former Adherium (ASX:ADR) CEO Dr Paul Mastoridis isn’t fading gently into the good night.
Adherium on Monday said that Mastoridis had issued proceedings in a New Jersey court, alleging the company violated the New Jersey Conscientious Employee Protection Act.
This statute protects whistleblowers.
“The company denies Dr Mastoridis’ claims and intends to continue to strenuously contest them,” Adherium says.
Mastoridis last October was told his initial 12-month term would not be renewed as of January 7 this year and he was placed on gardening leave.
Adherium has developed devices that wrap around an asthma (or similar) puffer and record compliance with the medication.
The company recorded December half revenue of $500,328, 33% higher, with a $5.77 million loss compared to a $4.67 million deficit previously.
The company cites 3000 users (including those enrolled in clinical trials).
Management says it is track with its target of 9000 active users by the end of calendar 2025 – but its share price is going nowhere.
Botanix Pharmaceuticals (ASX:BOT) says it is off to a bright start with US sales of its drug to treat excessive underarm sweating well beyond what’s needed to regulate body temperature.
The embarrassing condition, axillary hyperhidrosis affects about seven million Americans, with many of them not seeking treatment because of the paucity of effective treatments.
Without providing specific numbers, Botanix says new patient prescription volume growth is on track, with refills exceeding the target rate.
Last June the US Food & Drug Administration (FDA) approved the treatment, Sofdra (sofpironium bromide) and the company underwent a ‘soft’ US launch thereafter.
The drug has commercial and public reimbursement.
Oh and don’t sweat about Trump: the company sees “no material impact from any tariffs on [its] product.”
With Botanix shares more than doubling in the last year, the $650 million market cap stock will be elevated into the S&P/ASX300 index as of March 24.
Speaking of index reshuffling, Pro Medicus (ASX:PME) and Sigma Healthcare (ASX:SIG) enter the ranks of the top 50 stocks, with the latter having merged with Chemist Warehouse.
The challenged Ramsay Health Care (ASX:RHC) and Mineral Resources (ASX:MIN) make way for the duo.
EZZ Life Science (ASX:EZZ) has signed a deal with a US manufacturer to produce its range of nutritional supplements for the North American market.
GLSP Inc will make the EZZ-branded dietary supplements “in compliance with FDA regulations and International Standards Organisation-certified quality standards”.
EZZ chair Glen Cross says by manufacturing in the US, the company can serve its customers “with greater speed and efficiency while maintaining our commitment to premium quality and innovation”.
While he doesn’t mention the ‘T’ – tariff word – local manufacturing could obviate any problems.
EZZ hitherto has been heavily focused on China, but sees the US$100 billion-a-year US supplements market as a key diversification route.
The FDA recently approved nine of its products and the company initially is launching four in the areas of probiotics and gut, women’s and exercise health.
At Stockhead, we tell it is as it is. While EZZ is a Stockhead client, the company did not sponsor this article
Health & Biotech
Health & Biotech
Health & Biotech
