ALK shares slump as CEO change adds to uncertainty
19/06/2023 10:23
** Shares in ALK-Abello ALKb.CO fall 11% after the Danish
pharmaceutical company announced a CEO change with Peter Halling
replacing Carsten Hellman at helm
** Nordnet analyst Per Hansen notes that the decision comes
after recent "turbulent" quarters for the allergy specialist
** The stock has lost about 50% of its value since record
highs in December 2021, according to Refinitiv data
** Investors fear that the 2025 plan to reach an EBIT margin
of 25% will be difficult to fulfil as the company revised its
expectations downwards just before the Q1 figures were
presented, Hansen said
** He adds that on the one hand, firing the CEO can be seen
as a sign of strength as the company acts on what it sees, but
on the other hand investors "are allergic to uncertainty" and
some may fear the recent guidance cut might be more than just a
one-off
** The stock, on track for its worst day in two months, is
among worst performers on STOXX 600 index .STOXX
(Reporting by Jesus Calero)
((Jesus.calero@thomsonreuters.com))