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Sirtex Medical Limited shares fall as it gives market update

The Sirtex Medical Limited (ASX: SRX) share price fell this afternoon, despite the liver cancer treatment specialist announcing the appointment of Mr. Andrew McLean as its new chief executive officer.

McLean apparently comes from a senior management role at NYSE-listed STERIS Corporation and has a big task on his hands to reverse the fortunes of a business that has suffered a series of setbacks recently.

The biggest setback was the need to sack its prior CEO after an investigation by legal advisers appointed by the company to look into the circumstances around the prior CEO’s share selling.

The company is now subject to an external legal claim for compensation over having allegedly misled the market as to its dose sales guidance and is currently prevented from executing a share buyback as a result of the claim from a Melbourne-based firm of lawyers acting on behalf of one or more aggrieved shareholders.

Resolving the mess left behind by his predecessor will be near the top of the new CEO’s agenda then, with the business also missing a Head of Americas after the last incumbent was acknowledged to have been let go by the company on its most recent clinical trials conference call.

Notably, the Head of Americas (before last) left the business on June 30 2016, with sales in this absolutely critical region slowing and the business now searching for its third chief in the region in around 11 months.

The company has also suffered a disappointing set of results for its flagship trials designed to promote the efficacy of its SIR-Spheres treatment for different types of cancer and the new CEO has a lot on his plate to get the business back on track.

Despite the big recent falls in the share price to $11.81 today, I’m not a buyer of Sirtex shares as I remain of the belief that its best days are most likely behind it.

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Motley Fool contributor Tom Richardson has no position in any stocks mentioned.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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