Peptech MD Kwik to resign

Peptech is to lose its managing director Stephen Kwik in the first glimpse of what chairman Mel Bridges has dubbed a "broadening and deepening of scope" for the therapeutic peptide and protein biotech.

"The board and management have mapped out a new strategy for the company to 2010 and beyond, and the future is looking excellent for the company on the strength of that. But we will need a new skill mix, and Stephen has been talking about retirement for the last 12 months as well," said Bridges.

Kwik confirmed that he would stay on as MD until a suitable replacement was found, and the company will be running "business as usual" for the foreseeable future.

"This is good for the company -- it shows it is progressing. It needs somebody with different priorities from me, and will let me take a holiday. I haven't had a break for three years," he laughed.

Not all observers have taken the same tack, with one describing the resignation as "disappointing; a shame". This last move now leaves three major companies in the sector - Gradipore, Amrad and Peptech -- with uncertainty about the future of the CEO. "It begs the question as to what is going on. These companies have weathered the worst of the storm, but still don't seem to be making it through intact," the observer said.

However, Bridges underscored the resignation had no secondary agenda, and asserted that Kwik would continue his relationship with the company until the dispute over royalty payments with Centocor was resolved, even if he had by then left as managing director.

"There are no onerous undertones here. Stephen leaving will be a managed affair, and part of the changes we have planned for the company," he asserted.

Bridges also flagged a change in direction for the company, with imminent acquisitions leading to what he described as a "beefed up, new-look Peptech".

"Within 12 months we are looking to broaden our opportunities in non-therapeutic and animal health markets, and to make more of our IP. And we will definitely be looking outside the company to help us extend and grow. This is not part of a willy-nilly process," he said.

The company is also confident of ongoing support from the financial markets, with a rise in its register from institutional investors to around 20 per cent, noted Bridges.

"That's good for us, but just as importantly it's good news for the industry as a whole. Support is coming back, and we are looking forward to our plans and a strong global position," he affirmed.

In March last year, Kwik, an accountant by training, offered to resign from Peptech so that the company could appoint a commercially-focussed scientist to the CEO position. But one month later, three board members -- including chairman Ed Tweddell -- quit the company under pressure from shareholders, and Kwik was asked to stay at the helm.

Investment banker from EG capital, Alison Coutts, noted that the resignation of Kwik was a positive for the company, and would allow Peptech to continue the progress made under his management.

“This will allow (Peptech) to progress to the next level, to fulfil its potential of being a big league player. Stephen turned in some big contracts that people didn’t expect him to, and it is now time for the next round,” she said.

“Peptech also has an excellent chairman in Mel Bridges. He has done a fantastic job so far, and will now be able to look around for a replacement for Stephen,” added Coutts.