Regeneus (ASX: RGS) has made a number of board and senior management changes consistent with its focus on increasing commercial and partnering activities for its regenerative medicine products and reducing costs and greater Board independence.
John Martin has stepped down as executive chairman and will take up the role of chief executive officer with immediate effect.
Founding chief executive officer Professor Graham Vesey will step down as CEO and take up the position of chief scientific officer.
He will also remain on the board as an executive director.
Martin will focus on taking actions necessary to increase commercial and partnering activities and reducing costs.
His job is to unlock the value in the company’s product pipeline and close the gap between the value of the assets and the share price.
Independent non-executive director Dr Roger Aston, has been appointed as the company’s independent chairman.
He will work closely with the new CEO in making sure that the market and all stakeholders have a clear understanding of the company’s strategy and plans to build shareholder value over the next phase.
The board will also look to appoint a new independent director with relevant healthcare and biotech experience while non-executive director and co-founder Dr Ben Herbert will step down with immediate effect.
Regeneus has also appointed John Bird as its new chief financial and operations officer.
He has over 25 years experience in senior finance and operations roles in ASX-listed and private technology, service and manufacturing businesses in Australia and Asia.
This includes being chief financial officer at ASX-listed AWA and iCash Payments Systems and senior business development roles at TAB.
Bird will help the company meet its operational and financial targets for the next 2 years including its quarterly cash burn target of $1.7 million pre any research and development rebate.
Regeneus is funded to progress its product pipeline having received $3.7 million from its R&D tax rebate from the 2014 financial year and raising $6.3 million through an oversubscribed Share Purchase Plan.
Its HiQCell treatment recently expanded into Singapore while its Kvax canine cancer therapeutic is now available to Australian dog owners.
Analysis
The changes are likely to be embraced by investors, as the company looks to narrow the divide between the value inherent in its assets including IP, including the potential for revenue generation and relativity to the valuations of its peers.
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