Smith & Nephew CEO Steps Down; Shares Fall By 7.5%
The current chief executive officer (CEO) of Smith & Nephew has recently announced his departure from the UK based multinational medical equipment manufacturer. Mr. Nawana has highlighted a desire to focus on foreign opportunities as the reason for stepping down. The announcement, according to the update from the market, was not well received by the investor.
ShoreCap Analysts’ View Of The Announcement
Copy link to sectionMr. Adam Barker and Ms. Raveendran have expressed their surprise following Mr. Nawana’s decision. The ShoreCap analysts, however, praised the CEO for introducing a novel commercial strategy and his overall performance during his tenure that started in May 2018. They further added that owing to the market growth rates and the ongoing integration of the new commercial model, the news has come at a crucial time for Smith & Nephew that jeopardizes the chances of it being positively received by the investors.
The financial analysts have also expressed their sheer interest in the upcoming CEO’s strategy for mergers and acquisitions. They were excited to see if the successor highlights plans for larger transactions which could potentially supplement the integration risk and increase the likelihood of overpaying.
Mr. Roland Diggelmann To Take On The Role Of The CEO
Copy link to sectionThe official statement from Smith & Nephew has reported Mr. Roland Diggelmann to be the successor of Nawana in his place as the CEO. The executive-level change will be effective from November 1st, 2019.
Mr. Diggelmann is known for his role as the CEO of Roche Diagnostics for 11 years before he finally joined Smith & Nephew back in March 2018. Before Roche Diagnostics, he had also served in a strategic and leadership roles at Zimmer Biomet as well as Sulzer Orthopedics.
As per Mr. Roberto Quarta, the current chairman of Smith & Nephew, expressed his excitement for Mr. Diggelmann taking on the role of company’s CEO and highlighted his confidence in the new CEO’s attractive qualities including his experience in innovation-led businesses where he has never failed to deliver results and hit the defined targets.
Smith & Nephew is set to release its third-quarter performance results on October 31st, 2019. Despite the company’s claims of “positive momentum”, ShoreCap has recently recommended “Sell” on its shares. Following the news, the recommendation has surely proven to be accurate. The stock opened at 1,780 level this morning, October 21st, 2019. A few hours into the trading session, the share prices have fallen sharply (over 7.5%) for Smith & Nephew. It is currently trading around 1,680 level after having made a daily low of 1,673 so far.
