Why Impax Laboratories Shares Slumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of generic-drug maker Impax Laboratories (NAS: IPXL) are under the weather today, falling as much as 10%, following news that its chief financial officer is resigning.
So what: Impax announced before the bell this morning that Arthur Koch was resigning, although he will help with the transition. Impax also announced that Bryan Reasons, who is currently the vice president of finance, has been appointed as acting CFO while the company conducts its search for a permanent CFO.
Now what: Koch had served as CFO since 2005; it's never a good sign to see a high-ranking, long-tenured executive leave a company. However, it doesn't appear there are any red flags surrounding Koch's departure, so I wouldn't let today's news change your investment thesis on the company. Personally, I'd consider using today's move lower as a potential buying opportunity into Impax as its role in generics is only likely to expand.
Craving more input? Start by adding Impax Laboratories to your free and personalized watchlist so you can keep up on the latest news with the company.
The article Why Impax Laboratories Shares Slumped originally appeared on Fool.com.Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.