Australian medical technology company PolyNovo Ltd saw its shares hit a 16-month low on Friday after confirming that CEO Swami Raote had been asked to step down. The leadership change, revealed in response to media reports, has sparked investor concerns.

PolyNovo stated that its board recently held a private discussion with Raote, requesting his departure by June 2025, aligning with his contractual notice period. However, the company did not disclose specific reasons for the decision.

Following the announcement, PolyNovo shares fell 7.4% to A$1.278 as of 01:53 GMT, marking their lowest level since November 2023. The stock drop reflects market uncertainty over the company’s leadership stability at a crucial time of global expansion.

Adding to the turbulence, The Australian reported earlier this week that PolyNovo Chair David Williams is under independent investigation over allegations of bullying senior executives, including Raote and CFO Jan Gielen. PolyNovo has not commented on the claims against its chairman.

To ensure business continuity, the company has proposed appointing non-executive director Robyn Elliott as interim CEO if Raote exits before a permanent replacement is named.

Despite the leadership changes, PolyNovo remains focused on its global expansion strategy. The company, which specializes in advanced wound-care solutions, has treated over 50,000 patients across 41 countries and continues to invest in new products and markets. However, the leadership transition raises questions about its future direction and execution of growth plans.

As PolyNovo navigates this period of uncertainty, investors and analysts will be watching closely for further updates on its leadership transition and overall strategy.