Another wintry storm Friday

MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all. 

Turn Up Your Support

Medtronic Inc., the world's biggest medical
device maker, said Wednesday that Omar Ishrak of GE Healthcare will
become its new chairman and CEO in June.


      Ishrak, 55, will join the company on June 13. He had been the
president and CEO of General Electric Co.'s health care systems
business, and worked at the company for 16 years. Medtronic said GE
Healthcare had strong growth in clinical systems and ultrasound
devices during Ishrak's tenure, and he improved its performance in
emerging markets.


      Medtronic announced in December that Chairman and CEO Bill
Hawkins planned to retire by the end of April. The Minneapolis
company said last week that Hawkins would remain on the job until a
replacement was found.


      Ishrak became president and CEO of GE's clinical systems unit in
January 2005 and was named president and CEO of the health care
systems unit in January 2009. He will earn an annual base salary of
$1.4 million at Medtronic.


      General Electric Co. said Tom Gentile, the head of its aviation
services division, will replace Ishrak as president and CEO of GE
Healthcare Systems.


      Citi Investment Research analyst Matthew Dodds said the choice
of Ishrak "is unexpected but looks promising." He noted that
Ishrak's background is in diagnostic and imaging devices rather
than implanted devices, which are Medtronic's primary focus. Dodds
said Ishrak will probably not shake up the company and will instead
try to improve its execution, control spending, and speed up its
expansion into emerging markets.


      Ishrak's appointment comes a day after Medtronic competitor
Boston Scientific Corp. announced that President and CEO Ray
Elliott will retire by year-end. Boston Scientific stock fell 9
percent on the surprising news.

      Wedbush analyst Phillip Nalbone said that no matter who is in
charge, medical device companies are struggling with major problems
like falling prices, tougher regulation, and pressure from payors.

      "It's not easy being a medical device company CEO these days,
battling the troubles within the industry and attempting to live up
to demands from Wall Street for quick results," he wrote. "We
expect the challenges in Medtronic's business to persist long after
Mr. Hawkins has departed."

      Shares of Medtronic added 13 cents to $42.78 in morning trading.

Gallery

Medtronic announces layoffs in Twin Cities

Two big medical tech firms in talks for possible combination

Medtronic wins suit over Boston Scientific heart patents

Boston Scientific CEO will retire at year-end

Business and Economic News

Medtronic Inc., the world's biggest medical
device maker, says Omar Ishrak of GE Healthcare will become its new
chairman and CEO in June.

Medtronic picks GE's Omar Ishrak as next CEO

Go Deeper.

Like this?

News you can use in your inbox