Movers & shakers: Alchemia appoints new CEO

Alchemia has appointed former Chief Financial Officer Charles Walker to the post of Chief Executive after Peter Smith stepped down following the failed Audeo Oncology demerger.

Alchemia (ASX:ACL) has a new Chief Executive Officer, with Charles Walker, former Chief Financial Officer, stepping into the role as of today.

This follows former CEO Dr Peter Smith stepping down on 25 January. Smith was a key driver of the attempt to demerge Alchemia and split off Alchemia Oncology into a new business.

Alchemia’s shares plummeted in December last year when the company pulled the plug on the demerger due to insufficient interest from investors.

Walker has a BSc with Honours in pharmacology and an MBA, and had held the post of CFO for two years.

“The board is delighted to have secured the services of a talented and experienced life sciences executive to lead the company through what promises to be a critical development period,” said board chairman Dr Mel Bridges, who was acting as the interim CEO following Smith’s departure.

“Charlie’s financial, technical and operational background and proven leadership skills will support the delivery of key milestones, while maintaining a sharp focus on delivering shareholder value.”

The market reacted positively to the news, with Alchemia shares (ASX:ACL) lifting 1.5% to 32.5c as of around 2 pm Monday, although they are still well shy of the 59c prior to the failed demerger.

The company also announced today a quarterly profit share of $3.4 million on generic fondaparinux sales of $12.3m by Dr Reddy’s in the US. This is up 90% on the previous quarter.

“It is pleasing to see a significant improvement in profits this quarter compared with the last quarter,” said Walker.

“This is mainly a result of the joint investment in process improvement and reduction in the cost of the API. We look forward to updating the market on next quarter’s profit share.”