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Chairpersons

SFBC International Appoints New CEO, Updates Guidance for Fiscal 2005

Strategic Insights

— 2 min read

SFBC International, Inc., a leading provider of drug development services, has announced the appointment of Jeffrey P. McMullen as its new CEO, replacing Arnold Hantman, who is retiring. The company also announced the resignation of Dr. Lisa Krinsky, who served as president and chairman. Jack Levine, previously lead director, has been elected as chairman of the board of directors. The board now comprises four independent directors and two management directors, with additional director searches ongoing.

Key Takeaways:

  • SFBC International has appointed Jeffrey P. McMullen as its new CEO, replacing Arnold Hantman, who is retiring.
  • Dr. Lisa Krinsky, president and chairman, has resigned, and Jack Levine, previously lead director, has been elected as chairman of the board of directors.
  • The board now comprises four independent directors and two management directors, with additional director searches ongoing.
  • SFBC is updating its GAAP EPS and non-GAAP EPS guidance for fiscal 2005 to reflect one-time, pre-tax charges related to the separation agreements with Dr. Krinsky and Mr. Hantman.
  • The company anticipates recognizing a total of approximately $3.825 million in one-time charges, or approximately $0.17 per fully diluted share net of tax effect, in the fourth quarter 2005 results.
  • SFBC's new guidance for 2005 is approximately $1.39 - $1.44 in GAAP EPS and approximately $1.71 - $1.76 in non-GAAP EPS.
  • SFBC has a strong management team in place, including PharmaNet's 14-person executive committee, Dr. Gregory B. Holmes, and Marc LeBel, CEO and president of SFBC Anapharm.
  • The company continues to have the support of its clients, who understand SFBC's commitment to excellence and regulatory compliance.
  • Mr. McMullen has more than 30 years of experience in the drug development industry, with a background in operational, business development, and sales and marketing roles.

Statistics:

  • $3.825 million: The total amount of one-time charges SFBC will recognize in the fourth quarter 2005 results.
  • $0.17: The approximate per-share impact of the one-time charges on GAAP EPS.
  • $1.39 - $1.44: SFBC's revised GAAP EPS guidance for fiscal 2005.
  • $1.71 - $1.76: SFBC's revised non-GAAP EPS guidance for fiscal 2005.
  • 30: The number of years Jeffrey P. McMullen has spent in the drug development industry.
  • 14: The number of people in PharmaNet's executive committee.
  • 24 months: The length of the non-compete agreements agreed upon by Dr. Krinsky and Mr. Hantman.

Sources:

  • SFBC International, Inc. (NASDAQ: SFCC) press release dated December 2005 (no date specified).
  • SFBC International, Inc. (NASDAQ: SFCC) SEC filings (no specific date specified).
  • SFBC International, Inc. website (www.sfbci.com) (no date specified).

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