The PolyNovo Ltd (ASX: PNV) share price is having a poor start to the week.
In fact, in early afternoon trade, the medical device company’s shares are the worst performers on the ASX 200.
At the time of writing, the PolyNovo share price is down 8% to $1.61.
Why is the PolyNovo share price sinking?
Investors have been selling down the PolyNovo share price since the release of an announcement late on Friday afternoon. Including today’s decline, the company’s shares have now lost 13% over the last two trading sessions.
As you might have guessed from the market’s reaction, that announcement wasn’t a positive one.
According to the release, after almost seven years with the company, Managing Director Paul Brennan has handed in his resignation. Though, he will remain in the position for three months to assist with an orderly transfer.
The release explains that Mr Brennan’s interactions with senior staff and his management style have led to differences with the PolyNovo Board. This ultimately culminated with the Managing Director tendering his resignation.
PolyNovo’s Chairman, David Williams, explained: “I would like to thank Paul for his leadership over the last 7 years. During this time PNV has undergone a significant transformation, expanded geographically, and enjoyed extraordinary commercial success that has shaped the company into a global medical device business.”
“However, in more recent times there have been increasing differences with the Board in relation to Paul’s interaction with the company’s senior management team and his management style. Accordingly, the Board has accepted Paul’s resignation.”
PolyNovo advised that it will now seek to find a new Chief Executive Officer that will take the company to another level.
Mr. Williams said: “The Board sees this as an excellent opportunity and a catalyst to take the company to another level with a new leader. The Board has started the search for a new outstanding candidate and leader with appropriate sales and marketing experience to spearhead growth in the US and the EU.”
In the meantime, Max Johnston has accepted the role of interim Chief Executive Officer.
The release notes that Mr Johnston was a Director of PolyNovo between 2014 and 2020 and knows the business well. In addition, for 11 years he was President and Chief Executive Officer of Johnson & Johnson Pacific and an Executive Director of Johnson & Johnson.
The PolyNovo share price is now down 59% in 2021.