Richard Vincent to replace Stephen Roche as Australian Pharmaceutical Industries CEO

API shares have spiked as the CEO’s exit announcement coincided with an upgraded profit forecast.

Outgoing Australian Pharmaceutical Industries CEO and managing director Stephen Roche.

Australian Pharmaceutical Industries has seen its shares shoot 6 per cent higher, after news of the imminent departure of long-time chief executive Stephen Roche coincided with the group upgrading its full-year profit forecast.

The latter development allowed the group to immediately quash concerns of weak performance that typically marry with news of the exit of a leading executive.

The owner of Priceline Pharmacy and Soul Pattinson Chemist has tapped Richard Vincent – current general manager of business development, operations and strategy – to succeed Mr Roche in February.

“After ten years in the role and with the business having delivered successive years of very strong profit growth and with an experienced team in place, it is an appropriate time for me to step down,” Mr Roche said.

Group chairman Peter Robinson said the understanding of the company Mr Vincent had developed over more than a decade with API made him the preferred candidate of the board.

“Richard has the most relevant experience for this unique role that combines mainstream retailing and pharmaceutical distribution,” Mr Robinson said.

“He has been responsible for major programs across the total business, gaining a thorough understanding of the business drivers. To that end he has the right attributes to lead our strategy with a highly experienced retail team to execute on it.”

API (API) also announced a lift in its underlying earnings projection to $51 million, up from $49.5m and 17 per cent beyond last year’s corresponding number.

Its results are due out on October 20.

The news pushed its shares up 6.1 per cent to $2.01 at 11.15am (AEDT), as against a broader market gain of just 0.3 per cent.