Story adds analyst comments after third paragraph.
Medtronic has found its man. The device giant announced this morning that its board of directors has named Omar Ishrak, who has served as the president and CEO of GE Healthcare Systems, as the company's new chairman and CEO, effective June 13. The news comes a week after it was reported that current CEO Bill Hawkins would be staying on board at the company until his successor was found.
"I am honored and excited to have the opportunity to lead Medtronic--a great company with a renowned, mission-based heritage of saving and improving lives," Ishrak says in a statement. "I have admired Medtronic for many years and believe the company's 60-year history of innovation, unparalleled global footprint and unmatched capabilities present enormous opportunities to improve the health of millions of people worldwide. I look forward to working with the Medtronic team to continue to advance the company as a global healthcare leader."
While at GE Healthcare, Ishrak helped transform the way in which GE Healthcare innovates, manufactures and sells products, particularly in emerging markets, Medtronic points out in its release. Under his guidance, the Clinical Systems Division almost doubled in revenues to approximately $5 billion from 2004 to 2009. He also transformed the company's ultrasound business, growing revenues from $400 million in 1998 to $1.8 billion in 2010.
Analyst Adam Feinstein of Barclays Capital says in a research note that Ishrak is a "good choice" for multiple reasons. He represents a "fresh face at a company where, in our view, investors were ready for a change," MedCity News reports.
And he has the "skillset to succeed," Barron's quotes Vertical Research Partners analysts Jeff Sprague and Nicole Parent as saying. "He was responsible for 80 new product introductions from 2010-2011 alone, creating a pipeline of 400 plus new products and expanding China revenues 6 times," they add.