Ailing medical equipment maker Convatec hopes new boss will transform fortunes
Convatec’s shares rose this morning as it announced it had poached Karim Bitar, chief executive of Genus, as its new boss.
The struggling medical equipment manufacturer confirmed the appointment this morning, meaning it will finally have a permanent chief after previous CEO Paul Moraviec stepped down last October.
Read more: Shares in Convatec fall 20 per cent on ‘disappointing’ results
Convatec, which makes colostomy bags and catheters, has struggled in recent months after a profit warning in October. The company's shares have fallen 45 per cent in the last year.
The company’s board will hope Bitar can turn the firm’s fortunes around after making a success of animal genetics firm Genus, where he expanded the company’s reach into emerging markets such as Brazil, Russia, India and China, poured money into research and development and increased shareholder returns by more than 150 per cent.
Convatec shares rose 3.5 per cent this morning as investors hoped for the same thing, while Genus shares fell 3.2 per cent.
Meanwhile chairman Christopher Gent, former chief executive of Vodafone and chairman of Glaxosmithkline, has announced he will not be seeking re-election at the firm's annual general meeting in July, despite leading the firm to an initial public offering in London just two-and-a-half years ago.
The news was first reported by Sky on Sunday evening.
Bitar said: “Convatec competes in attractive chronic care markets and has a solid portfolio of products and services. I am excited by the opportunity to lead Convatec to stronger and sustainable rates of profitable growth.
“Convatec has the potential to achieve market leadership across its franchises, by focusing on innovation and execution excellence and by leveraging its global presence.”
He will be paid £875,000 a year, but this could rise to £2.6m a year if Bitar earns his annual bonus.
Read more: Convatec issues profit warning as CEO leaves
Christopher Gent, chairman of Convatec, said Bitar is “an experienced and highly regarded leader with an excellent track record of delivering impressive results and transformational change within similar businesses.”
“The board and I are very confident that Karim is the right person to lead Convatec through the next stage of the company’s development.”