The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is having a difficult day.
In afternoon trade, the biotechnology company's shares are down 12% to $1.48.
This makes the Paradigm share price one of the worst performers on the All Ordinaries index today.
Why is the Paradigm share price sinking?
Investors have been hitting the sell button on Tuesday after Paradigm announced the surprise exit of its CEO and managing director, Marco Polizzi.
According to the release, Mr Polizzi has stepped down from his role immediately and will cease employment with the company on 20 February.
Paradigm only announced the appointment of Polizzi at the end of May, with the experienced pharmaceutical industry executive commencing in the role on 1 July. At the time, the company hyped up his appointment, describing him as "a CEO with the skills to fully unlock the commercial value of the company."
No reason was given for the CEO's exit after just a few months with the company. Nor did Polizzi leave a parting comment, which is never a good look and could potentially be an indication of boardroom tensions.
What now?
The Paradigm board has acted quickly and appointed the company's founder and non-executive chairman Paul Rennie as its new leader. He said:
I am pleased to advise that the personal circumstances that originally required my stepping down from the Managing Director role in 2021, have now been successfully resolved. I look forward to working closely again with the Paradigm executive team and the Board in continuing our journey together.
Following today's decline, the Paradigm share price has now lost almost a third of its value over the last 12 months.
