Ipsen Seeks CEO as It Splits Top Roles, Deputy CEO to Leaveby
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.