NuVasive CEO Alex Lukianov resigned from his post with the company and as a member of the company's board after an investigation found non-compliance with the company's expense reimbursement and personnel policies.
Greg Lucier was appointed chairman of the board and interim CEO. He has been a member of the company's board of directors for two years and is a member of the board's audit and compensation committees. He has previous experience as chairman and CEO of Life Technologies, which he transformed into a global, world-leading biotechnology firm with nearly $4 billion in sales.
"We believe this leadership transition is appropriate and in the best interest of the company and all of our stakeholders," said Jack R. Blair, lead independent director of the NuVasive Board. "We appreciate the positive contributions Alex has made to the company and wish him well in his future endeavors."
Here are five things to know about the leadership transition:
1. The NuVasive board of directors oversaw an independent investigation finding Mr. Lukianov didn't comply with certain policies.
2. The "amounts involved" in the non-compliance are considered immaterial to the company's financial results.
3. NuVasive's shares fell 5.4 percent to $43.52 in recent premarket trading, according to a Nasdaq report.
4. The company is still focused on market share-taking strategies that have driven double-digit revenue growth, according to Mr. Lucier, as well as leveraging meaningful scale and efficiencies to accelerate profit growth and strong free cash flow.
5. NuVasive anticipates the first quarter revenue will exceed $190 million, which includes more than $2 million of currency headwinds. This announcement came at the same time as Mr. Lukianov's resignation.
"I have great confidence in the company's senior management team, strategic direction and opportunities that lie ahead," said Mr. Lucier. "NuVasive benefits from an experienced team, which shares a commitment to improving patient outcomes by providing our surgeon customers with the most innovative product offerings."
As Nasdaq points out, NuVasive's disclosure comes on the heals of Polycom agreeing to pay the SEC $750,000 to settle charges that the company didn't have adequate internal controls and "failed to report to investors that a former executive used nearly $200,000 of corporate funds for personal perks."