GroPep MD dismissed

GroPep (ASX: GRO) has sacked its managing director because of a difference of opinion over the company's direction.

Dr John Ballard, who today described himself as the South Australian growth factor company's first employee, said he was disappointed at the decision made 14 months before his tenure was due to expire.

"I had a strong difference of opinion with the board about where the company should go," Ballard said.

"It got to the stage where we didn't agree sufficiently and the board decided to take the steps that it did."

He would not give details of the conflict, saying only that there were a number of issues.

"I am disappointed because I was very pleased to be working over the next year or so to consolidate the purchase of Biotechnology Australia," Ballard said.

"I was the first employee and now there are 110 staff over two sites and it is growing every year in terms of revenue and I think I have taken it all the way."

He said changes to the board made before the company listed on the Australian Stock Exchange in August 2000 had made the environment more difficult because of differences in strategy positions.

In a statement to the ASX GroPep chairman Richard England said there were "a number of strategic issues which go beyond the tenure of Dr Ballard's employment contract".

England's statement recognised Ballard's contribution since GroPep's inception as a not for profit entity through to its public listing and recent acquisition of Biotechnology Australia.

He also indicated that the management team put in place by Ballard would remain with the company.

"The company wants to ensure that it has the very best possible management going forward," England said in the statement.

"The board will proceed to conduct a worldwide search to find a suitable replacement for Dr Ballard."

He said the board had appointed existing executive director Dr Chris Goddard as chief operating officer.

Analysts expressed surprise at the move, but pointed to a steady decline in the stock's price from about $3.40 in late 2000 to today's price of about $1.70.

One analyst said GroPep's recent announcement that its development of a topical diabetic neuropathy treatment would cease had not attracted much attention in the market place when compared to the snowballing effect of Amrad Corporation's negative trial results last month.

"It might have gone relatively unnoticed by the market," the analyst said of GroPep's March 28 announcement, "but perhaps it wasn't unnoticed by the board."

Ballard, who left the GroPep offices immediately, said he planned to set up an angel fund with his wife Dr Leanna Read, who is chief executive officer of TGR-BioSciences in Adelaide.

He is also chairman of GroPep spinout Primegro, which takes on veterinarian products that come out of the parent company, and said he hoped to continue in the role.

Ballard said he had not yet spoken to all of Primegro's board members, but believed the company's chief executive was happy for him to stay on.