LOS ANGELES (AP) — Shares of Herbalife are down more than 2 percent after the resignation of CEO Richard Goudis over comments he made before he became the company's top executive.
The company did not release any details about the exact comment, but said late Tuesday that they were unrelated to Herbalife's financial reporting. The Los Angeles company said the comments are contrary to its expense-related policies and business practices, inconsistent with its standards, and don't reflect its culture.
The company did not respond immediately early Wednesday when asked for more details.
Goudis, who became CEO in 2017, will be replaced on an interim basis by former CEO Michael Johnson, Herbalife's executive chairman.
Herbalife Nutrition Ltd.is looking among its own senior executives for a permanent replacement.
8 Biotech Stocks to Buy and Hold in 2020
Biotech stocks are far from a sure thing. However, towards the end of 2019 several stocks in the sector got a nice lift based on promising new drugs in their pipelines. One of the key ways to measure any biotech stocks is the depth of its pipeline. When a biotech company issues a drug, its stock typically gets a lift because, for a brief period of time, the company has exclusive rights to that stock.
But those rights only last for a period of time. And at that point, generic equivalents can enter the market. Since generic labels typically bring prices down, it can be harmful to the stock unless they have a continuous stream of drugs coming to the market.
And in 2020, the story of biotech companies has been the coronavirus. Several of the leading biotech firms are working either individually or in tandem with other firms to develop vaccines or antiviral therapies to help treat and eventually blunt the spread of the virus which remains foreign to our bodies.
So while a volatile market is typically a clue to stay away from biotech stocks, now may be an ideal time to jump into this sector. And we’ve identified 8 stocks that you can buy today and hold until the end of the year.
View the "8 Biotech Stocks to Buy and Hold in 2020".