Allscripts Axes CEO, Ends Plans to Sell Itself
Shares of Allscripts (NASDAQ: MDRX) plunged over 15.5 percent on Thursday to trade around $9 per share. This drop came after the company replaced its CEO, Glen Tullman, who will also step down from the company's board.
Effective immediately, Paul Black will take over the company's CEO role. Mr. Black is the former COO of Cerner Corporation (NASDAQ: CERN) and currently sits on Allscripts' board of directions. He has also served on the board of The Truman Medical Center, as a director of global healthcare company Haemonetics Corporation (NYSE: HAE), and as a senior advisor at New Mountain Capital and a director with several New Mountain portfolio companies.
Allscripts also indicated that Lee Shapiro will step down as President, further shaking up the company's leadership. Mr. Shapiro will serve as a consultant to Mr. Black for up to six months.
According to CNBC, this leadership shakeup occurs just days after the company's stock fell in trading upon news of a merger between Baylor Health Care System and Scott & White Healthcare. With Baylor Health Care System being a major client of Allscripts, the move jeopardized some business for the already struggling firm.
Still, despite his departure and the company's struggles, now former CEO Glen Tullman is optimistic, at least publicly.
Black certainly has the resume of a proven leader. He helped Cerner develop into a company with $1.5 billion in annual revenues and already has direct experience with Allscripts as a board member. Look for shares of Allscript to rebound with Black at the helm.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.