Boston Scientific ($BSX) has found its future CEO, snagging Michael Mahoney (photo), current worldwide chairman of the medical device and diagnostics group for Johnson & Johnson ($JNJ). Mahoney will initially serve as president of the company starting Oct. 17 and is expected to transition into the role of CEO in November 2012, thus allowing him to complete post-employment obligations to J&J.
During the transition period, Hank Kucheman (photo), Boston Sci's executive VP and group president of the cardiology, rhythm and vascular unit, will serve as interim CEO. At the end of the period, Kucheman is expected to "transition into a senior advisory role and continue to support the business," according to a company statement.
Alex Gorsky, vice chairman of J&J's executive committee, is expected to take the helm of the company's medical device and diagnostics group, a spokesperson said, according to Reuters.
"I have great respect for Boston Scientific and its position as a market-leading, global Fortune 500 healthcare company," commented Mahoney. "My experiences leading complex businesses, developing international markets and driving operational excellence for other world-class companies will serve me well in my new role. I am making a long-term commitment to continue Boston Scientific's focus on innovation and delivering improved patient care while revitalizing the company's sustainable growth through the continued execution of its POWER strategy."
When he eventually takes over, Mahoney will face a number of challenges. Indeed, outgoing CEO Ray Elliot, who replaced Jim Tobin in June 2009, saw declining sales, layoffs, product recalls, unit sell-offs, government probes and large patent settlements, the Boston Herald notes. That said, at least one analyst thinks Boston Sci has made quite a great pick with Mahoney. "J&J's medical device business is the world's largest, so this is somewhat of a coup for Boston Scientific in our view," Wells Fargo Securities analyst Larry Biegelsen said, as quoted by Reuters.