ConvaTec poaches Genus chief executive Bitar

ConvaTec said that Bitar, who has been at Genus since 2011, helped transform the company, creating three global business units and successfully expanding its presence in key emerging markets.

He also substantially increased Genus' investment in R&D, creating a strong pipeline of innovative products and during his tenure as CEO, shareholder returns rose by more than 150%.

Prior to his time at Genus, Bitar spent 15 years in various roles, with increasing responsibility at Eli Lilly where from 2008 he was President of Europe, Australia and Canada.

Chairman Christopher Gent said: "I am delighted to announce Karim's appointment as chief executive officer of ConvaTec. He is an experienced and highly regarded leader with an excellent track record of delivering impressive results and transformational change within similar businesses.

"The board and I are very confident that Karim is the right person to lead ConvaTec through the next stage of the company's development."

The company also said that Christopher Gent plans to retire and will not seek re-election at the AGM on 9 May. Interim chief executive officer Rick Anderson has agreed to serve as executive chairman until a new chair has been appointed.

In addition, deputy chairman and senior independent director Steve Holliday has resigned as a member of the board with effect from the end of March. He will be replaced as a senior independent director by Margaret Ewing.

At 0930 GMT, the shares were up 4.1% to 139.75p.

Peel Hunt upped its stance on ConvaTec shares to 'buy' from 'hold' and lifted the price target to 230p from 150p on the back of the new CEO appointment.

"New CEO Karim Bitar's track record of investing to deliver transformation at global leader Genus bodes well for ConvaTec's nascent turnaround," it said. "Though Mr Bitar will not land for six months, we think now is the time to become more positive on ConvaTec given: (i) Mr Bitar's loyal following among UK midcap investors; (ii) CTEC's Transformation Initiative is already underway; and (iii) 3%/6% dividend and free cash flow yield offer support in the interim."

Russ Mould, investment director at AJ Bell, said: "This fresh start has certainly gone down well with investors as Convatec is one of the few large cap stocks to be rising on a bad day for the UK stock market.

"ConvaTec desperately needs a new lease of life as it has been a serial disappointment for most of its time as a listed business. Having made an impressive start by qualifying for the FTSE 100 index mere weeks after its IPO in 2016, its shares have been in a falling trend since summer 2017."