InVivo CFO Steve McAllister leaves at short notice

  • Signs for push-out forces
  • After almost three years on the job
  • Praise, thanks and good wishes for McAllister
  • Melanie Morel-Ferris takes over in the interim

(management-change.com) — Cambridge, Massachusetts, December 08, 2016 — Steve McAllister, finance chief of InVivo, leaves. It is a change at short notice. As announced by InVivo Therapeutics Holdings Corp. in a news release and in a regulatory filing published on Thursday, December 08, 2016, Steven (Steve) McAllister leaves the post as Chief Financial Officer at the clinical-stage biomaterials and biotechnology company in a surprising move after almost three years on the job, effective December 31, 2016.

No company wants a CFO to flame out in the first years.

McAllister’s duties are taken over in the interim by Melanie Morel-Ferris, currently Controller at InVivo Therapeutics Holdings Corp.

The move is a generational change as well. Melanie Morel-Ferris is about 22 years younger than Steve McAllister.

“Transitioning to a new opportunity”

The management change is explained as follows. InVivo said: “He has indicated he will be transitioning to a new opportunity at a privately-held medical device company”.

Precise information about the future plans of McAllister was not immediately available.

“Resignation”

InVivo said: “On December 5, 2016, Steven F. McAllister notified InVivo Therapeutics Holdings Corp. … of his resignation as Chief Financial Officer of the Company, effective December 31, 2016.”

Mark Perrin, InVivo’s Chief Executive Officer and Chairman, said: “The Board of Directors conducts regular succession planning exercises, and Melanie had been identified as a potential successor if and when the opportunity presented itself.”

Share price decline

The change follows a sharp decline in the share price of InVivo Therapeutics Holdings Corp. since June 2015.

Chaired by Mark D. Perrin

InVivo Therapeutics Holdings Corp. is chaired by Mark D. Perrin.

Before joining InVivo Therapeutics in January 2014, Perrin served as President of Dennan Consulting, a biotech consulting firm.

On the job as CFO since 2014

McAllister has been the Chief Financial Officer of InVivo Therapeutics Holdings Corp., since June 19, 2014.

McAllister served as an Interim Chief Financial Officer of InVivo Therapeutics Holdings Corp., from December 31, 2013 to June 19, 2014.

McAllister served as Vice President, Finance and Administration for Biomet Spine and Bone Healing Technologies (a private equity-owned medical device company) from 2007 to 2013, where he was responsible for all accounting, finance, IT, facilities, and insurance operations activities in addition to leading the company’s strategic planning initiatives.

Prior to Biomet, McAllister spent eight years with Johnson & Johnson’s Medical Device and Diagnostics Group, where he served as Director of Finance for the worldwide spine business and Director of Finance, Worldwide Operations, for Global Orthopedics.

From 1984 to 1999 he worked in several capacities in Pfizer’s medical device business, which was sold to Stryker in 1998.

McAllister received his BS in accounting from Fairleigh Dickinson University.

Unplanned

As a general rule, when a top manager announces to step down with no permanent successor available, it’s a sign that the move was unexpected and too early.

Signs for push-out forces

It is not completely certain what forces eventually triggered Steve McAllister’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 46.2016 ($).