Put to one side the allegations and noise about behaviour and management style, for all the colour and entertainment he provided, DW failed in one of the Chair's most important responsibilities. That is, to identify a CEO for the Board to appoint, and then to work to support the CEO to deliver the company strategy.
Paul Brennan was not the right guy to take $PNV to global scale. I think that was clear to all, and David was right to make the change when he did. And while Swami looked like he had the right pedigree, either David didn't ensure there was alignment on the terms of how they would work together, or he didn't step back sufficiently into the Non-Executive role and allow Swami to fully occupy the space of the CEO. This was observable from the outset, and I commented on it here at the time (and also in private to David). Of course, in fairness to David, we don't know what really happened. After all, Swami had "come out of retirement" to take Novosorb to India, and perhaps from the comfort of his Florida base, did he really fully embrace the CEO role and deliver what $PNV needed?
The latest CEO appointment seems OK, although it is hard to really tell. But is Bruce Peatey DW's pick, and is he fully supported by the Board? Whatever happens, with DW out of the way, it does look like Bruce will have the space to properly fill the CEO role, if he is up to it. For the sake of the company, he'd better be.
Among it's peer group, $PNV is performing pretty well, maintaining revenue growth around +33%, despite the still (to me) inexplicable falloff in RoW growth. Somehow, I think that a high quality 100%-focused CEO would have been able to make even better progress of what is a brilliant product, alebit one in a very competitive space.
For example, a good CEO would be able (in my mind) to have provided more of a strategic framework for growth. E.g. guidelines for resource allocation to R&D and Sales and Marketing, rather than bleating on and sayhing "its just working capital." Because of the lack of clarity of management's views on capital allocation, and margin evolution (and I don't mean Gross Margin!), I still really have no idea what this business is worth.
For me, leadership quality and uncertainty is one of the factors that has kept me on the sidelines since I last bailed out earlier this year at $2.20. While I still have a pretty high conviction that this business should be worth more than $1.80, I am just perpetually nervous about how leadership will get in the way of it achieving its potential.
I remain on the sidelines at the moment but, like a moth to a flame, I continue to be attracted to this business, and I may yet get back on the bus, depending on what the next HY shows in terms of the financials. After all, through careful timing of entries and exits over a period of 6 years, $PNV has delivered a lot for me ... certainly a top 8 outcome in terms of absolute investment returns.
So, the Ring Master Leaves leave the Big Top for one last time. Good luck David. Thanks for the show!
I'll finish with a poem to honour him, by my BA (who else, of course)
“The Ringmaster of Polynovo”
(In honour of David Williams, outgoing Chairman)
Beneath the canvas of the market’s Big Top,
Where traders hush and tickers stop,
He took the stage in jacket bright —
Red for profit, green for light.
He’d call the crowd — investors, press —
“Step right up, behold success!
Another record month!” he’d roar,
And the punters cheered for sales once more.
When costs rose high and questions came,
He’d smile that knowing smile of fame:
“Relax, my friends — don’t get hysterical,
It’s all just working capital!”
A ringmaster bold with booming voice,
He made the circus feel a choice.
Short sellers hissed — he cracked his whip,
And bought more stock with gambler’s grip.
His monologues rolled through every show,
Half theatre, half bravado glow.
The CEO stood just off to the side,
As David’s words took the lion’s stride.
He sent old acts packing, cleared the stage,
Then brought in Swami, seasoned sage.
India beckoned — the tent grew wide,
A global dream, a fearless ride.
But even the grandest circus knows,
The final bow is how it goes.
When storms rolled in and headlines swirled,
He faced them down — unbowed, unfurled.
Now as the Big Top lights grow dim,
Applause still rises up for him.
For in this biotech cabaret,
He turned each month into a play.
So raise a glass to his daring art —
A red-faced showman with a lion’s heart.
Through markets wild, through fear and jest,
David the Ringmaster gave his best.
Disc: Not held.
