Two companies have announced significant changes in their management team and overall structure today, and the news has sent their shares soaring.
First up - Vernalis, the biopharmaceutical company. The group has axed its chief executive Simon Sturge, who will step down at the end of the month.
The firm has become the latest victim of a turbulent biotechnology sector, which has been hit hard by the credit crunch. Yesterday, Ardana put itself up for sale, and at the beginning of the month, CeNeS Pharmaceuticals said it was in talks with a suitor.
Shares in Vernalis have fallen 88% since May last year. In October, troubles were compounded by the US drug regulator's rejection of its key Frova drug as a treatment for menstrual migraine.
The group has also announced a major restructuring plan that will see 120 people lose their jobs in the UK and US. It will divest of Apokyn, its drug for Parkinson's disease, and of the company's US commercial operations.
The restructuring is expected to be completed during the second quarter of the year.
Shares in Vernalis have risen 0.98p, or 13.4%, to 8.3p, as investors are relieved that action has been taken, and also on hope that the company might now be a prime takeover target.
Management Consulting Group is the other company to have been hit by the resignation of some of its management team. Its chairman, chief executive and finance director have all resigned following investor pressure.
The consulting company has said Dr Rolf Stomberg, chairman, and Kevin Parry, chief executive, have resigned with immediate effect.
Craig Smith, the finance director, has also resigned but will continue to work until August 19 or earlier if agreed.
Gartmore, a fund manager with a 20% stake in the company, had been particularly unhappy with Parry, and had requisitioned an EGM to remove him. But it seems the company has pre-empted the move.
Shares in the company rose 3p to 37p on the news.
