Summary
A prominent Contract Development and Manufacturing Organization (CDMO) facing significant operational and reputational challenges partnered with Klein Hersh to conduct a confidential search for a new CEO. In just 71 days, Klein Hersh placed an experienced executive in this role to successfully lead the organization’s turnaround, stabilizing operations and positioning the company for future growth and a successful transaction.
The Challenge
A prominent CDMO specialized in aseptic and sterile drug manufacturing faced a critical challenge. The company was under the scrutiny of the FDA, who had issued them a warning letter due to quality standard violations. This letter required the organization to take corrective actions to address the violations and prevented them from continuing production operations or taking on new business until the issue was resolved. This situation not only affected their revenue streams but also jeopardized their reputation and future viability in a competitive and rapidly growing market.
The Private Equity (PE) firm behind the company needed a new CEO who could drive quality improvements, restore operational stability, and ultimately position the company for a profitable future transaction. The market was competitive, and those few qualified CEOs interested in new opportunities were in high demand, often entertaining multiple offers.
The CDMO knew that attracting and landing the right candidate for this role would be vital to their long-term success.
The Approach
Identifying and landing the right candidate in this climate to lead the organization through these challenges required a strategic and transparent approach. Klein Hersh’s deep CDMO industry expertise and past successes with this longstanding client, having delivered them 10 leadership placements since 2018, uniquely positioned us to tackle this complex search. Klein Hersh’s two Pharmaceutical Services & Technology Partners led the work through a methodical and relationship-driven approach to meet the CDMO’s urgent needs:
- Needs Analysis: The Partners began by conducting a comprehensive needs analysis with the client to fully understand the scope of the current situation and the ideal profile and phenotype required for the role. Our deep dive revealed the need for a CEO who possessed a rare combination of aseptic operational expertise, FDA experience, and turnaround capabilities in a difficult environment. Klein Hersh also coached the client to offer a more competitive compensation package to attract high-caliber talent in an extremely competitive market.
- Identifying Target Candidates: Next, we compiled a targeted list of candidates who met these criteria from within our extensive network of leading CDMO executives.
- Strategic Communication: Then, we used a systematic outreach approach to engage candidates with transparency about the opportunity and the challenges the company was facing, while highlighting the unique opportunity this role presented for career growth, financial reward, and resume-building credentials. We also methodically engaged trusted industry contacts to validate top candidates, helping to ensure that they not only possessed the technical and operational qualifications needed, but also fit culturally with the company’s goals for long-term success.
Throughout the search, the Klein Hersh team faced challenges, including top candidates entertaining offers from multiple organizations. They navigated these obstacles with open communication, strategic guidance, and an unwavering commitment to meeting the client’s urgent goal of finding the right person for the role.
The Results
Exceeding expectations, the Klein Hersh team successfully placed a CEO who was an ideal match for the company’s needs in just 71 days – well ahead of the anticipated 90 to 120-day timeline. This candidate possessed the operational experience, FDA knowledge, and turnaround expertise necessary to address the company’s most pressing challenges. Furthermore, the CEO was committed to the company’s long-term success, a key factor for the PE firm, which sought a leader who would both stabilize the organization and ultimately drive a successful transaction.
The client was thrilled with the outcome, and feedback from the PE firm was overwhelmingly positive. Within months of the new CEO’s appointment, they began working closely with consultants to remediate the site and address the FDA’s concerns. Through his leadership, the company restored its operational capabilities, lifted the FDA warning letter, and regained its ability to produce and take on new business. The new CEO also demonstrated the company’s financial viability, paving the way for its eventual sale at a significantly higher value than would have been possible without these improvements.
Klein Hersh has the expertise and trusted network to solve even the most challenging executive leadership searches. If your organization is facing leadership challenges or needs expert guidance to navigate complex transitions, contact us to discuss how we can help you secure the visionary talent needed to create a successful future.
