Lonza Shares Tumble After News of CEO Departure

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By Cecilia Butini

Shares in Swiss life-sciences company Lonza fell sharply in early trading on Monday after it announced that Chief Executive Pierre-Alain Ruffieux will leave the company at the end of the month.

At 0731 GMT, shares traded 8.3% lower at CHF455.90.

The company said that Ruffieux is leaving by mutual agreement, and that Chairman Albert M. Baehny will step in as interim CEO until a permanent successor is appointed.

The CEO’s departure is likely to raise apprehension, especially considering that Ruffieux is leaving at the end of September and the company has a Capital Markets Day scheduled for Oct. 17, analysts at Jefferies said in a note.

The company already had a similar episode in its history, when in November 2019 CEO Marc Funk left Lonza after only nine months in the role, the analysts said, adding that the decision to seek a new CEO may reflect the board’s loss of confidence in management.

Write to Cecilia Butini at [email protected]

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