Ipsen Seeks CEO as It Splits Top Roles, Deputy CEO to Leave

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  • Stock has biggest drop in almost six months in Paris trading
  • Drugmaker says financial outlook remains unchanged for 2020

Ipsen SA is looking for a new chief executive officer as it splits its top management roles and its deputy CEO leaves the company. The stock slumped.

Chairman and CEO Marc de Garidel will become non-executive chairman once a new chief executive officer is found, the Boulogne-Billancourt, France-based drugmaker said in a statement Tuesday. Deputy CEO Christel Bories will leave amid “disagreements over the group’s strategy.”

“We are surprised by the news,” Peter Welford, an analyst at Jefferies LLC, wrote in a note to clients. Rather than strategic disagreements, Bories’ departure “more likely reflects the decision to look outside for a new CEO,” he said. “Sweeping senior management changes often result in a period of uncertainty, but we note financial objectives are confirmed.”

Ipsen shares fell as much as 7 percent to 45.31 euros in Paris, the steepest drop in almost six months. They declined 4.9 percent at 9:29 a.m. The company said its short-term financial targets and outlook for 2020 remain unchanged.

Ipsen aims to hire a new CEO within the coming months and has initiated a search. It said the role split is needed to speed up its development abroad.