The Australian share market may be storming higher on Thursday, but the Medical Developments International Ltd (ASX: MVP) share price hasn't followed its lead.
In morning trade the healthcare company's shares are down 1% to $8.42.
Why is the Medical Developments International share price tumbling lower?
Investors have been selling the company's shares this morning after the surprise announcement of the exit of its chief executive officer, John Sharman.
According to the release, Mr Sharman has resigned from the role after almost 10 years with the company in order to pursue other business interests.
However, he intends to remain with the company behind the Penthrox non-opioid analgesic pain management product for at least three months to assist with an orderly transfer.
Medical Developments International's chairman, David Williams, spoke very positively about the outgoing chief executive.
He said: "On behalf of our Board, our staff and our shareholders, I would like to thank John for his outstanding leadership and significant contribution to the company over the last 10 years. During this time MVP has undergone a significant transformation, expanded geographically and enjoyed extraordinary commercial success that has shaped the company into a global pharmaceutical business."
"John has been a fantastic leader of our business, we congratulate him on his achievements. While we are sad to see John leave, this is a good opportunity to take the company to another level with a new leader," he added.
What now?
The chairman advised that the company has started the search for a new leader that it hopes can spearhead its growth in the United States and Europe. It is also looking for someone who can bring its flow technology and related products to market.
Until then, the board and Mr Sharman will work closely with the leadership team to manage the transition.
