This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New CEO for aaiPharma

Now what?

AaiPharma's (AAII) CEO, Dr. Philip Tabbiner, was replaced Monday by the embattled company's founder and chairman, Frederick D. Sancilio.

The company's stock dropped 61 cents, or 7.2%, to $7.86 in late-morning trading.

The Wilmington, N.C.-based aaiPharma has been beset by a series of recent problems that have caused the company's stock to drop 75% since mid-January. Financial revelations have triggered several cuts in Wall Street equity ratings; provoked one equity analyst to drop coverage; sparked a downgrade to negative from stable by Standard & Poor's; and prompted Moody's Investor Services to place several aaiPharma debt issues under review for a possible downgrade.

Tabbiner also resigned as a director and will become a consultant to aaiPharma "for an extended period to facilitate this transition," the company said.

The company also appointed Gregory F. Rayburn as interim chief operating officer, replacing David M. Hurley, who resigned Feb. 12 to head a start-up medical company. Hurley had been chief operating officer for only five weeks. He had been employed by aaiPharma for two years. Rayburn is a senior managing director with a consulting firm, FTI Consulting, whose corporate headquarters is in Annapolis, Md.

Tabbiner joined the company in 2000 after holding jobs at several larger drug companies. He became chief operating officer in the spring of 2002 and was elevated to chief executive in July 2002, as Sancilio took the titles of executive chairman and chief science officer to focus on scientific strategy. Sancilio had held the CEO since he founded aaiPharma in 1979.

"We see this change as forward progress in getting to the heart of difficulties and addressing issues as soon as possible," said David W. Maris, of Banc of America Securities, in a research report Monday. Maris cut his rating to neutral from buy four weeks ago. (He doesn't own shares, but his firm is a market-maker in aaiPharma's stock and has had an investment banking relationship with the company in the past 12 months.)
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $112.76 -0.47%
FB $89.43 -1.74%
GOOG $618.25 -1.92%
TSLA $249.06 0.23%
YHOO $32.25 -2.70%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs