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| Smith & Nephew CEO Olivier Bohuon |
Smith & Nephew ($SNN) CEO Olivier Bohuon has a highly treatable form of cancer. Bohuon's treatment will include chemotherapy, and is expected to conclude in the late fall, the company said in a statement. He will remain CEO and "be actively involved in running the company through much of his treatment period."
"The board has approved provisional governance procedures to ensure the effective operation of Smith & Nephew during the treatment period, including Chairman Roberto Quarta providing executive oversight if required," the statement says.
"Olivier has set a clear strategy that is invigorating Smith & Nephew's growth profile. I am confident that Olivier and his team will continue to execute the plan successfully. Our thoughts are with him as he undergoes treatment," Quarta said in the statement.
Investors don't seem overly concerned by the announcement. The company's shares on the London Stock Exchange moved little on upon the announcement, according to Bloomberg.
However, S&N shares are down about 1.5% on the day on news that Stryker is acquiring disposable device maker Sage Products for $2.7 billion. They stand at 1,145 pence as of 2:15 p.m. London time.
The decline means investors believe the Sage Products deal makes a Stryker-S&N tie-up less likely, but the big reaction also indicates the strength of the rumors of an impending takeover of the U.K. orthopedics player.
In December, Stryker ($SYK) reportedly offered $18 billion for S&N. Zimmer's $14 billion takeover of Biomet left S&N as the only midsized orthopedics player in an industry dominated by giants Zimmer Biomet ($ZBH), Stryker and Johnson & Johnson's ($JNJ) DePuy.
Despite his cancer, Bohuon will remain the key to any transaction and its valuation.
- read the release
- read Bloomberg's take