Macrocure Ltd (NASDAQ:MCUR) Refurbishes Management; Overhauls The Board

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Macrocure Ltd (NASDAQ:MCUR) was a massive decliner during the trading session. The stock collapsed by close to 17 percent on high volumes, which were 2 times the daily average. The stock has been unable to breach above the resistance zone at $2.60 due to lack of buying interest at higher levels. The stock currently trades below all daily moving averages. The indicator for relative strength has given a fresh sell signal indicative of lack of strength. The MACD oscillator has given a sell signal, which is considered to be bearish. Trades see the stock heading to levels of $1.42 in the near term.

MCUR

Macrocure Ltd (NASDAQ:MCUR) on November 27, 2015, announced strategic changes to its management. The present Chairman, David Ben-Ami, stepped down and shall now be the member of the Board. He is succeeded by the present CEO and Director of the Board, Mr. Tomer Kariv. He is also the founder of the company Pontifax.

Among other vital executive, changes were that of the Chief Financial Officer. The present CFO, Mark Page will step down from his position in February 2016. Page has resigned from the company and shall now explore other executive opportunities. Succeeding Page is Mr. Shai Lankry, the former CFO and present Vice-President (Finance) of Macrocure Ltd.

Apart from these evident changes, the present Chief Medical Officer, Dr. Michael Molyneaux will resign from the designation in December 2015.

Management reinstated: A Strategic Decision

As Macrocure is looking forward to vital strategic changes in the management, a change in the overall management and the Board is chasing a new leadership with expansion motives in mind.

The CEO and President of Macrocure, Nissim Machiach, said that the contribution of Page, Molyneaux, and Ben-Ami, regarding leadership was immense. The markets may see further strategic alternatives shortly. Mr. Nissim Machiach has already indicated outsourcing an outside advisory firm so as to assist Macrocure with the review of management.

The biotechnology company may look for other alternatives. Until now, Macrocure has confined to the development of a therapeutic platform for addressing acute wounds conditions and problems associated with them.

A strategic decision or cash conservation mechanism?

Recently, the company had also announced cost reduction as well as restructuring initiatives. Both these were targeted towards cash conservation. On August 19, 2015, and October 27, 3015, Macrocure announced the failure of its Phase III clinical studies for CureXcell. However, the company maintained that the interests of shareholders shall remain paramount to it.

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