Executive Shuffle Continues at InVivo Therapeutics

InVivo Therapeutics continues to experience personnel upheaval. Two weeks ago, the company’s CEO and chief financial officer (CFO) Francis M. Reynolds resigned due to “health concerns.” Sean F. Moran took over as interim CFO, but has now resigned just two weeks later. Michael J. Astrue, who is interim CEO, will now take over the role of interim CFO as well.

The company just announced the appointment of current board member John A. McCarthy, Jr. to the office of non-executive chairman of the board. In addition, board member Kenneth DiPietro has been appointed as a member of the Board’s audit committee.

McCarthy is currently the CEO at CryoXtract Instruments, and has been on InVivo’s board of directors since April 2013. DiPietro currently serves as executive vice president of human resources at Biogen Idec, and joined InVivo’s board in December 2012.

As a result of Moran’s departure, InVivo cancelled a presentation it was due to give at the 15th Annual Rodman and Renshaw Healthcare Conference on Sept. 10. The company also experienced a sharp dip in share price following the personnel change announcements, which it made after business hours on Monday night Sept. 9.

In addition to the executive personnel changes, the company also announced a considerable delay in the commercial availability of its flagship product—a biopolymer scaffolding for spinal injury patients. The testing procedures will start in early 2014 and each new human trial will be staggered by a 3-month period, further delaying the end of testing. The delay was caused by unexpected clinical trial requirements by the U.S. Food and Drug Administration.

InVivo Therapeutics Holdings Corp. focuses on polymer-based platform technology to develop treatments for traumatic spine and brain injury. The company is based in Cambridge, Mass.