Fresenius Shares Rise on New CEO Appointment

By Joshua Kirby and Cristina Roca

Shares in Fresenius SE & Co. traded higher on Monday following its announcement that Chief Executive Officer Stephan Sturm will leave the company next month, to be succeeded by Michael Sen, currently the CEO of subsidiary Fresenius Kabi.

The German healthcare company's decision to replace its CEO is unsurprising, Berenberg analysts Tom Jones and Odysseas Manesiotis said in a research note.

At 0713 GMT, shares traded 5.8% higher at 26.04 euros.

Mr. Sen will take the reins of the German healthcare company on Oct. 1, having been unanimously appointed by the supervisory board, Fresenius said.

Mr. Sturm, CEO since 2016, leaves the company on good terms, the company said.

Under Mr. Sturm's leadership, the company has contended with a string of challenges, from a scrapped merger deal a few years ago to the pandemic and, just last month, a profit warning that was attributed to inflation and labor shortages in the U.S. Its shares have lost 44% of their value over the past 12 months, according to FactSet.

While most of these problems weren't the company's making, a leadership change was probably needed, Berenberg analysts said.

Mr. Sen will remain head of Fresenius Kabi until a successor is appointed, the company said. Prior to joining Fresenius, he managed conglomerate Siemens AG's healthcare business Siemens Healthineers AG and its energy business, Fresenius said.

Write to Joshua Kirby at [e-mail]; @joshualeokirby and Cristina Roca at [e-mail]

(END) Dow Jones Newswires

August 22, 2022 03:59 ET (07:59 GMT)

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