ConvaTec (LON:CTEC) shares lost a third of their value today after the British wound care giant said the CEO that took it public two years ago is stepping down and lowered its outlook for the rest of the year.
Chief executive Paul Moraviec, who led ConvaTec to a $1.8 billion initial public offering in October 2016, retired effective immediately, the company said. Moraviec was replaced by board member Rick Anderson, the former chairman of Johnson & Johnson (NYSE:JNJ), on an interim basis.
ConvaTec also slashed its top-line guidance for the rest of 2018, saying it now expects organic revenue growth to be flat to 1.0%, down from 2.5% to 3.0% previously. The company blamed the downgrade on a change in inventory policy for its largest infusion devices customer, said by one analyst to be Medtronic (NYSE:MDT), that’s expected to deliver a hit of -$18 million to -$23 million to fourth-quarter revenues.
The company also said its Americas president, Tim Moran, left the company last month and was replaced by Ken Donlon, also on an interim basis.
The news sent CTEC shares down -33.1% to a £150.00 close today in London.