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Investing.com -- Avita Medical Ltd (NASDAQ:RCEL) stock plunged 21.9% in premarket trading Friday following the announcement of an immediate leadership change and Board restructuring.
The therapeutic acute wound care company revealed that Chairman Cary Vance has been appointed Interim Chief Executive Officer, replacing Jim Corbett who is departing from both his CEO position and Board membership. Vance will continue as Board Chairman, while Jan Stern Reed has been named Lead Independent Director.
The company plans to engage an executive search firm to help select a permanent CEO, considering both internal and external candidates, including Vance. The interim CEO has served on Avita’s Board since 2023 and brings over 30 years of healthcare industry experience.
"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 $3.00 price target on the stock, commented on the changes: "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 transition comes at a critical juncture for Avita Medical, which has been working to expand its wound care platform and return to growth.
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