On February 18, Adagio Therapeutics Inc. (ADGI) announced that its current CEO Tillman Gerngross has agreed to resign from the position. Consequently, the stock went down by a further 8.10% in the after-hours.
ADGI stock was already in the red with a slight loss of 0.77% during the regular trading session. The stock closed the session at $6.42 while the volume remained only 1.61 million shares, just 19% of its average. Following the announcement, the stock’s downfall escalated in the after-hours as it reached a value of $5.90 per share. Thus, ADGI stock declined by 8.10% or $0.52 in the after-hours session on Friday.
The anti-body-based solutions developer for infectious diseases, Adagio Therapeutics Inc. has a market capitalization of $714.24 million. Currently, the company has 111.25 million shares outstanding in the market. In the past five days, the stock has declined by 8.29% while losing 11.57% year to date.
ADGI’s CEO Transition
On Friday, the company announced that Mr. Gerngross has informed the board of his agreement to resign from the role. Moreover, the board has decided to appoint Mr. David Hering as the Interim Chief Executive Officer. Mr. Hering has served the company as Chief Operating Officer. He comes with over 25 years of experience in the industry with some of the top pharmaceutical companies. Before joining ADGI, as the president, North America of Pfizer, he led and launched Pfizer’s Covid-19 vaccine.
Thus, Dr. Gerngross has agreed for transferring his duties as CEO to Mr. Hering.
Company News
On January 13, the company participated in the 40th Annual J.P. Morgan Healthcare Conference. Mr. Gerngross presented at the conference at 7:30 a.m. EST.
On January 12, the company summarized recent findings related to its lead monoclonal antibody, ADG20. As per the findings, ADG20 retains activity against SARS-CoV-2 variants Alpha, Beta, Delta, and Gamma. Moreover, it also retains neutralizing activity against the Lambda, Mu, and Delta plus variants. In comparison to these, ADG20 has reduced potency against the Omicron variant but does how neutralizing activity against it.
Additionally, the company is exploring various strategies for tackling Omicron including improving ADG20’s binding. ADGI is also evaluating numerous mAbs against the variant.
Conclusion
After less than two years of the company being founded, Mr. Gerngross decided over his resignation from the company. This news was not taken very favorably by the investors as the shares of the company’s stock continued to decline after the news was shared.
