GI Dynamics lines up new CEO

GI Dynamics (ASX:GID) will next month appoint a new CEO to replace long-serving chief Stuart A Randle.

Biotech executive Michael Dale will take over as president and CEO effective 18 September. He will also take a seat on the board.

Dale has 25 years of career experience. He has led several companies in the medical device sector, specialising in the cardiovascular, neuromodulation and electrophysiology markets.

Previous roles include CEO of ATS Medical (now part of Medtronic) and atrial fibrillation treatment technology start-up Helical Systems.

Dale will be paid an annual base salary of US$450,000 ($480,000) plus performance bonuses of up to 45% of this base.

Outgoing CEO Stuart A Randle will remain on the GI Dynamics board and act as a consultant during the transition process. Randle has served as CEO since joining the company in 2004.

GI Dynamics separately announced that increased R&D and other operating expenses contributed to a US$3.7 million increase in the company’s net loss for the half-year ending in June to US$18.3 million.

But these expenses were partially offset by increased sales volumes for EndoBarrier, its device therapy for obesity and type 2 diabetes. Revenue from ordinary activities grew 148.7% to $1.75 million.

The company is underway with a key clinical trial to support a planned application for regulatory approval with the US FDA. By the end of the half-year, 22 of a possible 25 clinical sites in the US had initiated patient recruitment.

GI Dynamics (ASX:GID) shares were trading 7.29% higher at $0.515 as of around 2 pm on Friday.