Why is ASX All Ords healthcare share Race Oncology plummeting 10% today?

Its got something to do with the company's chief scientific officer and director.

Key points
  • The Race Oncology share price is plunging 9.5% at the time of writing to trade at $1.805
  • It comes as the stock exits a trading halt with news its chief scientific officer and director Daniel Tillett is stepping down
  • Tillett said "serious differences" with other board members, as well as "conflict with [his] own personal wishes and desires", led him to resign

The share price of All Ordinaries Index (ASX: XAO) healthcare company Race Oncology Ltd (ASX: RAC) is having a day to forget after exiting a trading halt with the news of a leadership shakeup.

The company's executive director and chief scientific officer (CSO) Dr Daniel Tillett has stepped down from his roles citing "serious differences with some members of the Race board".

Right now, the Race Oncology share price is $1.805, 9.52% lower than its previous close.

Let's take a closer look at the news weighing on the ASX All Ords oncology company's stock today.

A man in a white coat holds a laptop in one hand and his head in the other, it's bad news.

Image source: Getty Images

What's going wrong for this ASX All Ords share today?

The Race Oncology share price is tumbling on Friday after the company announced its star CSO and director is stepping away from the company.

Tilliett first became involved with the company in 2019 as a major investor before joining its board and, later, taking on the CSO role. He's been credited as a key contributor to the discovery of the company's cancer drug Zantrene's cardiovascular protective properties.

Tillett commented on his departure, saying:

I have full faith that our CEO Damian [Clarke-Bruce] and the Race clinical and preclinical teams have the capability, skill, and drive to ensure Race's success.

I am very grateful to have been able to work with so many talented scientists and clinicians during my time at Race, but serious differences with some members of the Race board have made my continued involvement untenable.

He gave a little more detail in an accompanying interview, continuing:

When you're a director, it's not an easy job. Many times you have to make decisions that maybe conflict with your own personal wishes and desires, versus the interests of the shareholders, and it's always the shareholders that have to come first.

In this particular case I've put the shareholders' interests ahead of my own personal interests.

Tillett also assured investors that he has no intent to sell his stock in the ASX All Ords company.

He held around 13.7 million Race Oncology shares as of last month – a roughly 8% stake – with another 2.3 million shares in voluntary escrow until November.

Professor Tim Hammond of the company's partner Advonate Clinical will succeed Tillett as interim CSO until a replacement is found.

Race Oncology share price snapshot

Today's tumble sees the Race Oncology share price in the longer-term red.

The stock has dumped 9% since the start of 2023. It's also trading 35% lower than it was this time last year.

For comparison, the ASX All Ords is trading flat year to date. Looking further back, it has dropped 7% over the last 12 months.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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