Liva Nova (Nasdaq: LIVN) + CEO Damien McDonald has resigned effective immediately, with board chair William Kozy assuming interim CEO responsibilities.

“As we move forward, I would like to express our gratitude on behalf of the Board to Damien McDonald for his dedicated leadership through a challenging period of Covid and unrivaled global economic disruption. We wish him the best in his future endeavors. We are confident in our experienced senior management team and anticipate a smooth and positive transition over the quarter,” Kozy, a former BD executive, said in a news release posted after market close on April 14.

The London-based cardiac surgery and neuromodulation device company also announced a preliminary Q1 2023 revenue number of $263 million, up 9% from the first quarter of 2022 and surpassing the Wall Street consensus of $243.42 million. LivaNova will release full first-quarter results on May 3

LIVN shares were up more than 10% to $47.15 apiece by afternoon trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up slightly.

Mike Matson, senior research analyst at Needham & Co., noted that McDonald’s departure came after several pipeline disappointments at LivaNova, including the Caisson transcatheter mitral valve replacement and a heart failure indication for vagal nerve stimulation.

A new CEO could pare back expenses involving pipeline initiatives, engage in additional cost reductions in administration and sales, and perhaps even sell the company to a strategic or private equity, Matson said.  “We think there are opportunities for a new CEO to create value.”