Warnex’ long-serving CEO resigns; strategic review continues
News of Busgang’s departure from Laval, Canada-headquartered Warnex was announced on November 29 some 11 days after the firm appointed an independent executive committee to assess its strategic options.
Company spokeswoman Catherine Sartoros told Outsourcing-pharma.com that: “The executive committee and Mr Busgang came to a mutually acceptable arrangement which was announced last week.”
Busgang, who has led Warnex as CEO and president since 1998, will serve as a consultant to the firm for a period of up to one year in order to ensure the orderly transition of his responsibilities to remaining members of the executive committee.
Low demand
The departure comes after a difficult three months for Warnex. According to the firm’s third-quarter filing, low industry demand for analytical services – including QC testing - and genetic analysis pegged back modest gains made by its bioanalytical services operations.
Sartoros said that analytical services revenues “have decreased mainly due to lower volume from a few key clients in this division, which is related to the activities of their respective companies.
“We believe that the recession has had an impact on the industry as a whole, which has made it more difficult to make up for the losses from these customers with new business.
Despite this decline Sartoros is hopeful that recent reorganizational efforts – the closure of its laboratory in Laval and consolidation of continuing analytical services operations at Blainville in September – will pay dividends.
“With this reorganization, we expect to increase the efficiency of our operations and improve customer service. We also continue to focus on business development to increase our sales in this division."
