NEW YORK, Aug. 27 – Shares in German firm MWG Biotech slid 28 percent on Friday after its chief executive announced his resignation in light of an impending core operating loss for the year.
CEO Michael Weichselgartner, who founded the biotechnology equipment manufacturer, will be replaced on Sept. 1 by Matthias Schönermark, a consultant for MWG from the Boston Consulting Group, the company said.
Schönermark blamed weak market conditions and consultancy costs for the loss, which he said will reach $4.5 million euros, or roughly $4.1 million. He does not expect MWG to crawl out of the red before 2002.
"Under new management, MWG Biotech now enters the decisive phase of the restructuring process," the company said on its website. "The next months will be dedicated to strategic reorganization with a focused product portfolio, defined structures for turnover and...a strong increase of sales and marketing efforts."
Shares in MWG closed at 2.15 euros on the Neuer Markt on Friday, down from their peak of 30 euros one year ago.