Gradipore still filtering applicants for top job

Time is not on Gradipore's side. Not only has its separation technology been delayed by production problems, but it still hasn't found a replacement CEO for the trouble-shooting Bob Lieb, who officially departs at the end of this week.

"Although we have had a huge number of people interested, and of a very high calibre too, for various reasons it is taking longer than we had originally anticipated," said Tim Wawn, the company's chief operating officer.

Lieb, who was brought in as CEO in May 2002, was tasked with assisting the company make the move from a primarily research-oriented organisation to a customer driven, commercially successful company.

However, as recently as last week, the company revised its projected loss from to $AUD12 million to $15.5-$16 million, attributing the blow-out to "production problems" and "unanticipated manufacturing cost variances" during the gel expansion process.

Gradipore claimed improved process controls and quality assurance methods are being implemented to address these problems.

Nonetheless, Lieb is to stay on the board, although now based permanently in the US whilst the interim executive chairman, Jeremy Davis, will continue wrestling with local problems. These have been listed as refocusing the business and reviewing expenditure, as previously announced by the board.

Wawn, who resigned as a director last year to "focus on his executive duties as COO of the company", said the issue of a replacement CEO was a very important one for the company.

"We are still in transition, and now Jeremy has come up to speed in his role we are looking to get somebody as CEO in the very near future. We see it as a high priority issue," affirmed Wawn.

Falling revenues

While Gradipore claims its expenditure has now been controlled, revenues have fallen short. Although it has inked proof of principle agreements, conversion into manufacturing agreements remains a major challenge. The initial target of monoclonal antibody markets for its Gradiflow BF400 has now been revised following disappointing response, and although market response to its expanded gel range has been described as "encouraging", delayed release has set back the sales penetration process by some months.