Avita Medical Ltd (NASDAQ:RCEL) shares plunged 21.9% in premarket trading on Friday after the company announced a sudden leadership transition and major Board changes.
The wound care therapeutics firm said Chairman Cary Vance has been appointed Interim Chief Executive Officer, replacing Jim Corbett, who is stepping down from both his CEO role and his seat on the Board. Vance will retain his position as Board Chairman, while Jan Stern Reed has been appointed Lead Independent Director.
Avita Medical will work with an executive search firm to identify a permanent CEO, evaluating both internal and external candidates, including Vance himself. The interim chief has served on the company’s Board since 2023 and brings more than three decades of experience in the healthcare sector.
“It is a privilege to lead AVITA Medical as we continue advancing innovative solutions across our integrated, multi-product wound care platform,” Vance said in a statement.
BTIG analyst Ryan Zimmerman, who maintains a Sell rating and a $3.00 price target on the stock, commented on the leadership overhaul: “Given the issues RCEL has faced over the past several quarters, we are not entirely surprised by these prelim results and the Board’s decision to name a new CEO… Although this may provide RCEL with a clearing event, we expect the transition period will only add further instability during an already challenging period.”
The leadership shake-up comes at a pivotal moment for the company as it works to scale its wound care platform and reignite growth.
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