- Push-out Score suggests push-out forces
- After about five years in the position
- Praise, thanks and good wishes for Garg
- Jerry McLaughlin taking over
- Garg said 63 words
(exechange) — Dallas/Fort Worth, Texas, June 27, 2018 — Vipin Garg, chief executive of Neos Therapeutics, leaves — “upon mutual agreement”. It is an abrupt change. As announced by Neos Therapeutics, Inc. in a news release and in a regulatory filing published on Wednesday, June 27, 2018, Vipin K. Garg leaves his post as Chief Executive Officer at the pharmaceutical company after about five years in the role, effective immediately.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 9.5 years, according to data compiled by exechange.
Garg’s duties will be taken over by Gerald W. (Jerry) McLaughlin, most recently Chief Executive Officer of AgeneBio, Inc.
The fact that Garg’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
In general, an outsider does not have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.
No reason given
In the announcement, Neos Therapeutics did not explicitly explain the obviously compelling reason for Garg’s sudden move, leaving room for speculation.
Precise information about Garg’s future plans was not immediately available.
Generally speaking, it is often an alarm signal for investors when a CEO leaves the position abruptly and without a reasonable explanation.
Neos Therapeutics said: “Mr. McLaughlin’s appointment follows the mutual decision by Vipin K. Garg, Ph.D. and the Board of Directors for Dr. Garg to resign as Chief Executive Officer, President and Director of Neos.”
Neos Therapeutics further said: “On June 27, 2018, Dr. Vipin K. Garg resigned upon mutual agreement with the Board of Directors … as Chief Executive Officer and President of Neos Therapeutics, Inc. …, and as a member of the Board, each effective as of June 27, 2018.”
“Not the result of any disagreement”
“Dr. Garg’s resignation as Chief Executive Officer and a director of the Company is not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices,” Neos Therapeutics said.
It is a phrase that may be intended to prevent false rumors. It may also fuel further speculation and raise more questions than it answers. Such a phrase should be read very carefully. The exact wording may be insightful.
Share price decline
The change follows a decline in the share price of Neos Therapeutics, Inc. since November 2017.
Chaired by Alan Heller
Neos Therapeutics, Inc. is chaired by Alan Heller.
Alan Heller has over 35 years of leadership experience in the healthcare industry. Heller currently holds a position as an Operating Partner at Water Street and serves as Chairman of the Board of Celerity Pharmaceuticals and a Board Member of BioClinica.
In the position of CEO since 2013
Vipin K. Garg has been the Chief Executive Officer at Neos Therapeutics, Inc. since October 22, 2013.
Vipin Garg has served as the Chief Executive Officer and a member of the Neos Therapeutics, Inc., board of directors since October 2013, and was named the Company’s President in July 2014.
Prior to joining Neos, Garg served as President, Chief Executive Officer and a director of Tranzyme Inc., now Ocera Therapeutics, Inc. (NASDAQ: OCRX) from September 2001 to July 2013.
Garg has also served as Vice President of Operations and Business Development, and later Chief Operating Officer, of Apex Bioscience, Inc. from 1994 to 2000, as Vice President of Development at DNX Bio-Therapeutics, Inc., now part of Baxter, from 1992 to 1994, as Director of Technical Services and Marketing at Sepracor, Inc., now Dainippon Sumitomo Pharma, from 1989 to 1992, and as Manager, Contract Services at Bio-Response Inc. from 1986 to 1989.
Garg has served on the board of North Carolina Biotechnology Center and on the Executive Committee of CED (formerly the Council for Entrepreneurial Development), and is the recipient of the Ernst & Young Entrepreneur of the Year Award for the Carolinas Region in 2009.
Garg received his Ph.D. in Biochemistry from the University of Adelaide, Australia, his M.Sc. from the Indian Agricultural Research Institute in New Delhi, India, and his B.Sc. from Meerut University, India.
Garg will serve as an advisor to the company through the end of July 2018 to assist with McLaughlin’s transition.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Vipin Garg’s sudden move.
The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the change.
Read the full story in the exechange report 27.2018 ($).