Medtronic named Omar Ishrak of GE Healthcare Systems as chairman and chief executive officer, giving him the job of halting declining sales of the device-maker's biggest products.
The appointment of Mr Ishrak, a 55-year-old outsider who was president and CEO of a $12 billion division of General Electric, is a break from tradition, as US-based Medtronic previously chose chief executives from within. He will replace William Hawkins, who announced his plans to retire in December, the company said in a statement.
Mr Ishrak will take over the world's largest device-maker on June 12th as the weak economy and safety concerns erode demand for pacemakers and defibrillators. His appointment is a step in the right direction, although more information is needed about where the company is headed, said Michael Weinstein, a JPMorgan analyst in New York, in a note to investors today.
"After months of speculation, we view the resolution of the CEO search as a positive for Medtronic," Weinstein said. "The question from here is what is Ishrak's mandate? Is it same strategy, better execution? Or are there more aggressive plans for Medtronic in the months ahead? Our expectation is the former is much more likely than the latter."
Mr Ishrak spent 16 years at GE Healthcare, the world's biggest maker of medical imaging equipment. He ran the largest portion of the business, covering X-ray machines and MRI, CT, ultrasound and PET scanners, with 20,000 employees in 120 countries. He has a Bachelor of Science degree and doctorate in electrical engineering from the University of London, King's College in London.
Medtronic is cutting its workforce and selling a defibrillator unit as revenue from the company's biggest products - pacemakers and
defibrillators - fell 2 per cent in the three months ended January 28th.
Mr Hawkins was named as CEO in 2007, amid quality-control setbacks.
Bloomberg
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