Covidien to shake up management structure

Things will look different when Joe Almeida becomes Covidien CEO July 1. The company detailed a number of changes to its management structure this morning that will take effect early next month--changes that were discussed in an internal email from Almeida obtained by MassDevice.

"[I]t's clear that we need to further strengthen our company so we can hone our competitive edge and maximize our great potential," Almeida says in his email, following a review of the company's organizational structure. 

At the beginning of next month, Almeida's former position as president of Covidien's medical device segment will no longer exist, and a new level of group presidents will report to the new CEO, according to MassDevice.

Group presidents will include Bryan Hanson, who will have responsibility for the surgical devices and energy-based devices businesses. Meanwhile, Peter Wehrly will have responsibility for the respiratory & monitoring solutions and vascular therapies businesses, as well as regional responsibility for Japan, Australia-New Zealand and Canada. Mike Sgrignari, current VP of operations for the medical device business, is slated to become senior VP of quality & operations, a newly created position.

James Muse, senior VP, global supply chain, will retire after more than 30 years on the job, and Scott Flora, president, surgical devices, who led the business for the past five years, is leaving to pursue other career opportunities.

"These appointments will enhance our ability to deliver strong, sustained and profitable growth as we execute against our strategic initiatives," said Almeida in a statement. "I'd like to thank Jim and Scott for their years of service to Covidien and wish them the best in their future endeavors."

Back in March, Covidien announced that President and CEO Richard Meelia would retire effective July 1, and Joe Almeida, current president of Covidien's medical devices business segment, had been elected to succeed him. Almeida joined Tyco Healthcare--now Covidien--in 1995, and became head of medical devices in October 2006. The device unit accounts for about two-thirds of Covidien's total annual revenue and three-quarters of its operating profit.

Earlier this month, Bloomberg reported Covidien had hired JPMorgan Chase to handle the potential sale of its drugs business, and the deal could be worth up to $4 billion. Shedding the pharma business would allow the company to focus more closely on medical devices, a strategy departing CEO Richard Meelia disclosed in March.

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