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| Michael Mahoney, Boston Scientific's new CEO, takes the reins today--courtesy of Boston Scientific |
It's day one for Michael Mahoney as CEO of Boston Scientific ($BSX), and the former company president inherits a devicemaker in transition, working to bounce back from flagging sales and shrinking profits.
Mahoney came to Boston Sci in 2011 from Johnson & Johnson ($JNJ), where he served as chairman of that company's device and diagnostics division. Boston Sci gave him a one-year transition period as president so that he could wrap up his post-employment duties at J&J, and now it's time to take over.
Outgoing CEO Hank Kucheman said Mahoney, through his time with J&J and GE Healthcare ($GE), has the experience needed to steer the company back into the black. "While we have endured sometimes dramatic market shifts over the past few years, Boston Scientific continues to deliver encouraging results," Kucheman said in a statement. "This was the second time in our careers I've had the opportunity to work closely with Mike, and I know that Boston Scientific has a leader who is ready to continue the company's storied legacy of innovation."
Mahoney steps in amid Boston Sci's reinvention project, as the company took a $3.4 billion loss in the second quarter and followed it up with a 7% year-over-year sales decline in Q3. But the company has pled for patience all year, saying that its long-term restructuring efforts won't start to pay off until 2013.
In the meantime, Boston Sci has been toiling to turn around its cardiac business, over which Mahoney presided as president. While the efforts are yet to make much of a difference on profits, the company's streak of acquisitions and regulatory approvals are certainly good signs going forward. Over the past few months, Boston Sci has snapped up BridgePoint Medical and Rhythmia Medical to bolster its device offerings, and the company has grabbed a slew of clearances, including FDA approval for the highly touted S-ICD.
- read Boston Sci's release