{"id":49053,"date":"2024-07-08T17:38:54","date_gmt":"2024-07-08T17:38:54","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/07\/08\/canadian-pharma-company-dri-plunges-as-ceo-leaves-in-expenses-probe\/"},"modified":"2024-07-08T17:38:54","modified_gmt":"2024-07-08T17:38:54","slug":"canadian-pharma-company-dri-plunges-as-ceo-leaves-in-expenses-probe","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/07\/08\/canadian-pharma-company-dri-plunges-as-ceo-leaves-in-expenses-probe\/","title":{"rendered":"Canadian pharma company DRI plunges as CEO leaves\u00a0in expenses probe"},"content":{"rendered":"<div style=\"text-align:center\"><\/div><p> \n<\/p>\n<div id=\"\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p data-async=\"\">Shares of DRI Healthcare Trust fell as much as 32 per cent, the most since it went public more than three years ago, after its chief executive departed under scrutiny over expenses.<\/p>\n<p>The Canadian pharma royalty company said the board asked for and received the resignation of chief executive Behzad Khosrowshahi. DRI has launched an investigation, with the help of lawyers and forensic accountants, into \u201cirregularities related to certain alleged consulting and other expenses\u201d that Khosrowshahi presented, it said in a statement Monday.<\/p>\n<\/div>\n<div id=\"\">\n<p>Article content<\/p>\n<p>Chief financial officer Chris Anastasopoulos was suspended with pay, pending the outcome of the investigation. Board chair Gary Collins, a former politician in British Columbia, was named interim chief executive.<\/p>\n<p>DRI said it has identified $7.5 million that may be owed to the trust based on the information it has so far. A related company that manages the trust is making a payment for that amount, it said.<\/p>\n<p>DRI, which holds royalty streams on drugs for various forms of cancer, psoriatic arthritis, spinal muscular atrophy and other conditions, generated $151.4 million in net revenue in the 12-month period ended March 31.<\/p>\n<p>The management shake-up prompted a downgrade from Stifel Financial, which cut its rating to hold from buy, citing limited upside for the company as the investigation continues.<\/p>\n<p>National Bank of Canada analyst Zachary Evershed said his team wasn\u2019t \u201coverly concerned\u201d about the financial impact of these irregularities because they\u2019re relatively small and will be reimbursed by the external management firm.<\/p>\n<section aria-labelledby=\"moreTopicLabel3546444618094019703691836783591424\" class=\"more-topic\" data-aqa=\"embed-more-topic\" data-carousel-component=\"\" data-carousel-icon-button=\"\" data-carousel-type=\"list\">\n<p>Recommended 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height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Ontario judge approves sales process for The Body Shop Canada<\/span><\/p>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p>\u201cOur main concerns are the impact of the firm\u2019s reputation and potential weakening of the bench impacting the trust\u2019s growth trajectory,\u201d Evershed said in a note to clients.<\/p>\n<p>Shares of DRI were down 28 per cent to $10.91 as of 1:12 p.m. in Toronto.<\/p>\n<p data-async=\"\">Bloomberg.com<\/p>\n<\/div>\n<div id=\"\">\n<p>Share this article in your social network<\/p>\n<\/div>\n\n<br \/>Canadian pharma company DRI plunges as CEO leaves\u00a0in expenses probe<\/a><br \/>\n<br \/>2024-07-08 17:38:54<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article content Shares of DRI Healthcare Trust fell as much as 32 per cent, the most since it went public more than three years ago, after its chief executive departed&#8230;<\/p>\n","protected":false},"author":2,"featured_media":49054,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/07\/Boeing-fine-gs0708.png?h=96&strip=all&quality=5&sig=FbC7Btzl8aKQw5i4MHfXWQ","fifu_image_alt":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-49053","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/49053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=49053"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/49053\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/49054"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=49053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=49053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=49053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}