- Signs for push-out forces
- After about half a year on the job
- Search for a successor
(management-change.com) — Cambridge, Massachusetts, February 01, 2017 — Jim DeTore, finance chief of Proteostasis, leaves. It is a change at short notice. As announced by Proteostasis Therapeutics, Inc. in a regulatory filing published on Wednesday, February 01, 2017, James (Jim) DeTore, Chief Financial Officer, leaves the biopharmaceutical company in a surprising move after about half a year on the job, effective February 10, 2017.
No company wants a CFO to flame out in the first year.
Proteostasis will undertake a search for a successor.
The imminent management change is explained as follows. Proteostasis said: “On January 26, 2017, Proteostasis Therapeutics, Inc.’s Chief Financial Officer, James DeTore, provided notice of his resignation from the Company, effective February 10, 2017, for personal reasons.”
In the announcement, the company did not detail the personal reasons causing DeTore to leave the position, leaving room for speculation. Generally speaking, “personal reasons” may include, among others, family-related reasons, health reasons or disagreement.
Generally speaking, it is often an alarm signal for shareholders when a CFO leaves the post at short notice and without a reasonable explanation.
Precise information about the future plans of DeTore was not immediately available.
Share price decline
The change follows a decline in the share price of Proteostasis Therapeutics, Inc. since June 2016.
NEA holds 14.25 percent stake
NEA Management Company, LLC reported a 14.25 percent stake in Proteostasis Therapeutics, Inc. as of September 30, 2016. NEA is a venture capital firm.
Chaired by M. James Barrett
Proteostasis Therapeutics, Inc. is chaired by M. James Barrett.
Barrett has served on the board of directors since May 2015. Barrett has been a manager of an affiliate of New Enterprise Associates 12, Limited Partnership, or NEA, a venture capital fund, since 2001.
CEO: Meenu Chhabra
Meenu Chhabra serves as CEO of Proteostasis Therapeutics, Inc. Chhabra has been serving as President and Chief Executive Officer and a member of the board of directors since May 2014.
On the job as CFO since 2016
James M. DeTore recently joined Proteostasis’ team as of August 1, 2016 as Chief Financial Officer.
DeTore earned his MBA from Northeastern University.
He joined the company from bluebird bio where he served as the CFO from 2014 to 2016.
During his time at bluebird bio, DeTore set financial and investor relations strategy for the company.
He collaborated with the leadership team to drive business strategy, worked directly with Wall Street analysts and investors to communicate company messages and helped the company to raise over $720m in capital.
Prior to that DeTore worked for Ironwood Pharmaceuticals where he worked as the VP of Finance from 2006 to 2011 and then served as the VP of Finance and Administration from 2011 to 2014.
While at Ironwood Pharmaceutical DeTore provided leadership and direction for all financial and many operational aspects of the company.
From 2003 to 2006 he served as Corporate Controller of Microbia, Inc. where he oversaw the accounting and financial planning for the company and built the financial department of the company.
DeTore earned both his B.S. and M.B.A. in Northeastern University.
At the time of DeTore’s appointment as Chief Financial Officer at Proteostasis, Meenu Chhabra, president and chief executive officer of Proteostasis Therapeutics, had said: “Jim’s breadth and depth of experience with small-and large-scale biotech and pharmaceutical companies will be invaluable as we put into place the financial and operational infrastructure necessary to advance our clinical program.”
Signs for push-out forces
It is not completely certain what forces eventually triggered Jim DeTore’s move.
The Push-out Score™ determined by management-change.com suggests that push-out forces may have contributed to the management change.
Read the full story in the management-change.com report 06.2017 ($).