Sonic Healthcare's (ASX:SHL) new CEO, Jim Newcombe, is facing investor pressure to reconsider the company’s US operations as he steps into the shoes of long-serving predecessor Colin Goldschmidt.
Although Newcombe has led Sonic's Douglass Hanly Moir Pathology lab in Sydney for eight years, delivering strong earnings and margins, investors want greater transparency after years of Goldschmidt's reticence.
Sonic’s share price has fallen roughly 50% since late 2021, trading near $23 and valuing the $12-billion ASX-listed company at $11 billion, following slower pathology growth and disappointing full-year earnings.
Shareholders are urging Newcombe to unlock cost synergies from recent European acquisitions and review the company's underperforming US business, which generates more than 20% of revenue but lags behind rivals Quest Diagnostics and LabCorp.