Singapore medical device outfit Biosensors International is shaking up its boardroom after a tepid financial performance, working to move on from what it deemed "a challenging year."
CEO Jack Wang is stepping down from the top spot, and Executive Chairman Yoh-Chie Lu will serve as interim chief until Jose Calle Gordo, Wang's replacement, takes the reins in November.
Meanwhile, the stent specialist watched its fiscal year revenue decrease on annual basis for the first time in 5 years. Total revenue fell almost 4% to $323.8 million in 2014, a drop the company blames on a decrease in licensing payments. Product revenue stayed just about flat despite an increase in marketing efforts, and net profits fell roughly 60% to $45.5 million on the fiscal year.
"Overall, we were experiencing a market slowdown and an increase in competition, especially in the fast-growing markets such as China," Lu said.
When Gordo takes over in the fall, he'll inherit a devicemaker in transition. Last year, Biosensors began a wide-ranging shift in strategy, paring down its focus, driving efficiencies and investing only in areas it deemed to have high growth potential. And Gordo, a veteran of Abbott Laboratories' ($ABT) vascular division and Guidant, believes he can help return the company to growth.
"With my experience in leading the development and commercial success of innovative new medical products across the globe, I am confident that I can help Biosensors strengthen its position in the worldwide drug-eluting stent market, develop innovative technologies to broaden its product portfolio, and steer the company onto the path of becoming a bigger international player with multiple product platforms," Gordo said in a statement
But there will be no quick fixes, Biosensors acknowledged, and the company expects the global drug-eluting stent market to get more competitive and experience further price erosion in fiscal 2015.
- read the results
- here's the statement on Gordo