Assertio (ASRT) Shares Fall as Dan Peisert Steps Down as CEO
Shares of Assertio Holdings, Inc. ASRT were down 11% on Jan 3, 2024, after it announced that its current chief executive officer (CEO), Dan Peisert, is stepping down from his role.
Heather Mason, who currently serves as the independent director of the company, has been appointed as the interim CEO. The firm is currently searching for a new and permanent CEO.
Heather Mason, who has been with Assertio since 2019, also served as the chair of its Nominating and Corporate Governance Committee. Previously, she held various senior leadership positions at Abbott Laboratories.
Shares of ASRT have plunged 76.8% in the past year against the industry’s growth of 1.5%.
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We note that Assertio has been facing some challenges recently as sales of its products fell short of management’s expectations.
The company’s commercial portfolio includes several products for neurology, rheumatology and pain and inflammation.
Sales of Indocin product franchisee and Cambia declined in 2023 due to generic erosion. ASRT expects Indocin volumes to continue to be negatively impacted due to increasing generic competition.
It closed the acquisition of Spectrum Pharmaceuticals in July 2023, which added the latter’s Rolvedon (eflapegrastim-xnst) injection to its portfolio. However, sales of the product fell below management’s expectations in the third quarter of 2023.
Assertio acquired Sympazan from Aquestive Therapeutics in October 2022, which has been contributing to its top line.
However, Rolvedon and Sympazan’s added sales have mostly been offset by declines in Indocin and Cambia sales following the generic entrants.
The decision of the current CEO to step down from his role can be somewhat attributed to the recent business headwinds and disappointing results.
Zacks Rank & Stocks to Consider
Assertio currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the healthcare sector are Dynavax Technologies Corporation DVAX, Entrada Therapeutics, Inc. TRDA and Puma Biotechnology, Inc. PBYI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Dynavax Technologies’ 2024 earnings per share have improved from 12 cents to 18 cents. In the past year, shares of DVAX have surged 39.1%.
Earnings of Dynavax Technologies beat estimates in two of the last four quarters while missing the same on the remaining two occasions. DVAX delivered a four-quarter earnings surprise of 293.21%, on average.
In the past 60 days, estimates for Entrada Therapeutics’ 2024 loss per share have narrowed from $2.35 to $2.04. In the past year, shares of TRDA have lost 1.4%.
Earnings of Entrada Therapeutics beat estimates in three of the last four quarters while missing the same on the remaining occasion. TRDA delivered a four-quarter average earnings surprise of 70.68%.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 62 cents to 69 cents. In the past year, shares of PBYI have lost 4.6%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.
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