PolyNovo Ltd (ASX: PNV) shares are sinking on Tuesday morning.
At the time of writing, the ASX 200 healthcare share is down 9% to a 52-week low of $1.14.
PolyNovo is a medical technology company based in Melbourne that specialises in advanced wound care solutions. Its flagship product, NovoSorb BTM, is a dermal scaffold designed for complex wound management.
With over 50,000 patients treated across 41 countries, PolyNovo continues to expand its product offerings and global market reach.
This morning, the company confirmed that its chief executive officer (CEO), Swami Raote, is stepping down from his role. This follows recent speculation that Raote was looking for an early exit from his contract.
According to the release, while Mr Raote will officially cease employment with the company on 10 June 2025, he will no longer serve as CEO from today.
The company's board has appointed non-executive director Dr Robyn Elliott as acting CEO while an executive search is conducted to find a permanent replacement. Dr Elliott will also retain her position on the board.
The leadership change follows confidential discussions between the board and Raote, which ultimately did not result in an agreement. The Board has stated that, after careful consideration, it believes new leadership is necessary to continue PolyNovo's growth and strategic direction. Mr Raote has been asked to assist in the transition until his formal departure in June.
As part of the transition, the outgoing CEO will receive his regular salary and benefits up to the cessation date. However, his unvested options will lapse, and his 64,022 escrowed shares will become freely transferable around 30 September 2025.
The ASX 200 healthcare share notes that Dr Elliott brings a wealth of experience to the acting CEO role.
She recently retired as Global Head of Portfolio Management at CSL Ltd (ASX: CSL), where she was responsible for governance oversight and business value delivery of a multi-billion-dollar capital expansion portfolio.
Her background also includes senior strategic roles at CSL, managing director at IDT Australia, and experience in regulatory affairs, clinical trials, and operational strategy.
In addition to the CEO transition, PolyNovo has engaged global executive search firm Spencer Stuart to review the company's board structure, skills, and composition. This is part of an ongoing effort to enhance governance and ensure orderly succession planning. Further updates will be provided as the review progresses.
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