Mylan CFO Exits; Analyst Asks: "What Is Wrong Inside The Company?"

Last Updated Sep 9, 2009 5:37 PM EDT

Mylan's new CFO has left the job after just three months. Her departure follows an (as-yet) unrelated manufacturing controversy at Mylan, and an internal probe to find the mole who leaked internal documents about safety procedures at Mylan to the press.

Caris & Co. analyst David Moskowitz downgraded the stock as a result and asked in a note to investors, "What is wrong inside the company"?

Limited visibility on why these departures took place gives us pause regarding the senior leadership team at Mylan, and until another CFO is appointed and assessed, we believe investors will continue to wonder what is wrong inside the company.
The comfort we had in a new set of eyes on the financials is gone, and the chance that something could be wrong with Mylan's accounting or other areas of the business has increased, ... Of course, the business may be fine, however, if that is the case, a bad choice for CFO does not inspire confidence in senior management's decision making, in our view.
Here's the couldn't-be-worse timeline of events at the company:

May Jolene Varney hired as CFO.

July Pittsburgh Post-Gazette publishes story based on leaked documents about workers overriding computer safety procedures at a Mylan plant. Mylan vehemently denies the story. The FDA ultimately clears the plant for business.

August Mylan files lawsuit stating that it has conducted an internal investigation to find a mole who leaked the report to Pittsburgh Post-Gazette.

September CFO Varney exits.

Mylan's Q3 conference call is going to be a doozy.

Image: Mylan CEO Robert Coury.