This biotech's chair, who owns more than $28 million in stock, has just quit

The chair of this company has resigned just a day before he was to stand for re-election.

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Key points

  • Polynovo chair David Williams has abruptly resigned.
  • Mr Williams was to stand for re-election at a meeting tomorrow.
  • He owns a substantial stake in the biotech company.

Polynovo Ltd (ASX: PNV) chair David Williams has made a shock exit from the company, resigning with immediate effect just one day before he was to stand for re-election at the company's annual general meeting.

Mr Williams has been a director of Polynovo since early 2014 and also holds a substantial number of shares in the company.

In an update lodged with the ASX earlier this month, Mr Williams indicated he had bought another 55,000 shares in the biotechnology company, bringing his holdings to 21.6 million shares, worth $28.4 million at the company's $1.31 share price, up 1.5%, on Monday morning.

Mr Williams said in a statement released by the company to the ASX on Monday that it had been a privilege to serve as chair of Polynovo.

He added:

I am extremely proud of what we have accomplished, especially the number of lives we have changed and saved. I am very pleased with PolyNovo's new CEO; Bruce Peatey, new director Rob Douglas, and new chair Leon Hoare.

A resolution for Mr Williams' re-election to the board, which was to be voted on at the company's annual general meeting on Tuesday, 28 October, would be withdrawn, the company told the ASX.

No reason for Mr Williams' abrupt resignation was given.

New chair Leon Hoare, in Monday's statement to the ASX, thanked Mr Williams for his 12 years of service to the company.

He went on to say:

Under David's leadership, PolyNovo evolved from an early-stage medical device venture to a global medical technology company. The company achieved record growth in sales and expanded its presence to 46 countries, delivering innovative wound care solutions to patients worldwide.

Mr Williams is also the chair of RMA Global Ltd (ASX: RMY) and Inoviq Ltd (ASX: IIQ), as well as the chair of corporate advisory firm Kidder Williams.

Trading strongly

Polynovo recently released a positive quarterly update saying sales were up 33.3% over the quarter to $34.7 million.

The company's flagship product is NovoSorb BTM, which is a dermal scaffold product used for skin regeneration.

Mr Williams said at the time that there was "a lot to like and be proud of in the continued growth in sales, hospitals supplied, patients treated, countries supplied and surgeon engagement''.

He also said there was a lot to be excited about in the near term for the company, including the possibility of entering the US outpatient market through engagement with plastic surgeons, podiatrists, and the home care market.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PolyNovo. The Motley Fool Australia has recommended PolyNovo. 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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