Avastra founder resigns as MD

Five years after founding Sydney-based biomaterials company Avastra (ASX:AVS), managing director Paul Ralph has resigned.

"It's not an unfriendly move, I'm just moving on," said Ralph.

Avastra has faced a tough year after the clinical trials of its protein based BioWeld Tube were abandoned at Concord Repatriation and General Hospital, Sydney, following unexpected results in a long-term animal study.

"We've worked very hard, and we're still working hard to progress the BioWeld," said Ralph.

In August the company also decided not to exercise its option to acquire the global rights to the Universitaetsklinikum Freiburg's Benz Stent technology -- a device that was being developed to sit inside and adjacent to a rejoined deep colorectal resection to prevent leakage and assist in healing.

Ralph said that he has a "couple of things" that he wants to do but first he's "going to go the beach and have a holiday".

"Founders do move on, and they should move on at points in time," said Ralph. "There comes a time when you've got to make a transition."

Ralph finished as managing director last Friday, and will remain as a consultant to Avastra until the end of the month.

Avastra has appointed US investment bank Montgomery Pacific Group to investigate possible offshore acquisitions to ensure a cash flow for the company. It is likely that any further decisions about Avastra's management will occur once any acquisitions are complete.

In the meantime, Avastra's research manager Matt Harris has been appointed as interim CEO.

Ralph is still a significant minor shareholder of Avastra in his own name, and is also a shareholder in the New Millennium Fund. The fund is the company's single largest shareholder with a 21.8 per cent stake.

In further board changes, Guy Aird, a partner in Melbourne boutique investment bank Domain Capital, has joined Avastra as a non-executive director. Aird is also a director of the New Millennium Fund.