Future HealthCare Committee Wants New Chief Executive
CINCINNATI (AP) _ A committee that investigated serious accounting problems at Future HealthCare Inc. recommended Wednesday that the drug research company replace its chief executive officer.
The committee, which was appointed by the company’s board of directors, said there was no evidence that chairman and CEO John Peckskamp Jr. knew about the accounting problems.
But the committee contended the company’s and shareholders’ best interests would be served by a new CEO with a background in accounting and finance.
The board said it had approved the committee’s recommendation. Peckskamp is expected to remain as chairman, the company said.
Peckskamp did not return a telephone call seeking comment.
The board also approved the committee’s recommendation to fire controller Douglas R. Coates and accept the resignation of Timothy Ross, formerly president and chief operating officer.
Coates was fired on Friday, the company said, and Ross resigned March 9.
Future HealthCare serves the drug and medical device industries, conducting tests on humans of experimental products.
On April 3, the company said it believed its revenues for 1993 and the nine months ended Sept. 30, 1994, were about 50 percent less than the previously reported.
The company has delayed announcement of results for the fourth quarter and full year 1994.
Last month, Price Waterhouse charged that it was fired as Future HealthCare’s auditor after it refused to examine the company’s books while Peckskamp remained in charge.
The accounting firm, in a March 30 letter to the Securities and Exchange Commission, said there was no evidence connecting Peckskamp to the problems of inflated revenue. But Price had concerns about ``its ability to fulfill its responsibilities while the chief executive officer remained in office.″