Spine and orthopedics company Orthofix Medical (NASDAQ: OFIX) plummeted in trading on Tuesday after it made some significant leadership changes following an internal investigation. Catherine Burzik, Chair of the Orthofix Board, has been named Interim Chief Executive Officer. Furthermore, Geoffrey Gillespie was named as Interim Chief Financial Officer, and Puja Leekha as Interim Chief Legal Officer.
These appointments come after the unanimous decision of the independent directors to terminate Keith Valentine, John Bostjancic, and Patrick Keran from their respective roles, with Mr. Valentine also asked to resign from the Board. An investigation found that these executives engaged in repeated inappropriate and offensive behavior that violated the company’s code of conduct.
The Board plans to seek permanent successors while maintaining a focus on business operations, integration initiatives, and growth opportunities. Catherine Burzik reiterated that the company remains committed to maintaining a culture of respect and professionalism.
Analysts are cautiously optimistic about OFIX stock, with a Moderate Buy consensus rating based on two Buys and one Hold.
