Breaking: Medtronic Announces Major Leadership Change with Appointment of Dr. Matthew Kroh as CMO for Advanced and General Surgical Technologies

Recently, according to reports by foreign media MASS DEVICE, top medical device companiesMedtronicOfficially announced, appointingDr. Matthew Kroh serves as the Chief Medical Officer (CMO) for Advanced and General Surgical Technologies.

It is reported that Dr. Kroh is a Medtronic board-certified surgeon who previously worked inCleveland Clinic serves as the head of the Foregut and Surgical Endoscopy Department, with rich clinical experience.

Among them, he has profound professional knowledge in the treatment methods and new technology applications in the field of minimally invasive surgery, with expertise includingAdvanced laparoscopic surgery, bariatric surgery, gastrointestinal surgery, surgical endoscopy, single-incision laparoscopic surgery, and robotic surgery。

After officially assuming his position, Dr. Kroh will continue to leverage his extensive clinical and medical leadership experience to guide Medtronic's surgical business in new product development and commercialization strategies. He also plans to continue performing surgeries at the Cleveland Clinic.

Regarding this appointment, Kroh stated, "I look forward to contributing to the development of surgical technologies that can expand access and improve outcomes for patients worldwide."

Dr. Matthew Kroh

Image Source: Medtronic

The addition of Dr. Kroh has also brought high expectations from Medtronic, which is accelerating the expansion of its surgical business. The General Manager and Vice President of Advanced Surgical Technologies at Medtronic stated, "We are delighted to welcome Dr. Kroh to Medtronic. His expertise in...In the field of surgical innovation"The experience will be invaluable, and we will continue to advance the development of medical technology."

The change in senior management indicates that Medtronic is gradually increasing its focus on the surgical sector.

It is worth noting that this personnel change at Medtronic is not an isolated case. Since the appointment of Mike Marinar as Executive Vice President and President of the merged Surgical Division last year, there have been changes in the senior positions of Medtronic's surgical department.Frequent Changes:

In March this year, President of Medtronic's Respiratory Interventions DivisionAriel Mactavish Announces Departure from the CompanyDuring the same period, Executive Vice President of Medtronic and President of the Medical Surgical PortfolioBob White also resigned.

Subsequently, Medtronic adjusted the positions in its surgical department, successivelyIncorporate Dr. James Porter, a urology expert, into surgical operationsChief Medical Officer (CMO) of Robotics and Digital Technology in China, and this time'sDr. Matthew Kroh, SurgeonFor the Chief Medical Officer (CMO) of Advanced and General Surgical Technologies.

The intensive personnel changes are closely related to the intensified external market competition, the changing industry landscape, as well as the dual impact of internal strategic adjustments and performance pressures within the company.

In recent years, Medtronic has indeed encountered some difficulties. According to Medtronic's financial report data from last year, total revenue across all segments declined in the first quarter of the 2023 fiscal year, with total revenue reaching $7.371 billion, a decrease from the previous quarter.Decreased by 718 million US dollars.

Not only did the main sector perform poorly, but Medtronic also...Surgical robots also face dilemmas, due to product manufacturing and supply chain issues, was once delayed in its release.

To reverse the downturn, simplifying operations is a necessary step for Medtronic. At the 2024 JPM Conference held earlier this year, Medtronic announced a series of "closure," "integration," and "termination" plans:

At a high level, a sense of crisis constantly looms, especially under the intense competition within the industry. The fundamental purpose of this series of changes is nothing more than cost reduction and efficiency enhancement. Meanwhile, when a company enters a period of strategic transformation, one of the most intuitive manifestations is the turbulence in human resources management and the management level.

This also more strongly demonstrates that Medtronic is implementing strict cost control to strategically adjust and support future corporate growth. Among these,Running on the same track as the personnel reshuffle is Medtronic's massive business integration.

In the first half of last year, Medtronic announced that it would spin off its patient monitoring and respiratory intervention businesses from its medical surgical segment. According to Geoff Martha, CEO of Medtronic, exiting the ventilator market is in line with the company's interest maximization.

Subsequently, the internal departments were reorganized,Merge its surgical robotics and surgical innovation business units into a single surgical business unit.Medtronic stated that the move aims to strengthen its position in the rapidly growing surgical market, which is expected to expand further in the future.Will Double in Size Within Ten Years。

In response to the internal reorganization of the two operating departments, Mike Marinaro, President of the Surgical Division, stated: "As the only company capable of providing any surgical modality (open, minimally invasive, or laparoscopic) required by customers, we are able to driveA strategy, an innovative approach, and a customer-centric approach are crucial.This was Medtronic's original intention for developing surgical robots many years ago, and now it's time to reassemble it and truly accelerate this work."

After the restructuring of Medtronic's surgical division, surgical robots have become the core business of the department.

Medtronic stated that it will leverage the rich experience and broad customer base of its Surgical Innovations business in open, laparoscopic, and other minimally invasive surgery fields to provide more market opportunities and clinical data support for its surgical robot, the Hugo™ RAS system.

At the same time, leverage the innovative capabilities of the surgical robotics division in robotics, artificial intelligence, and digitalization to support the surgical innovation division.Provide more product differentiation and value enhancement.Achieve synergy between two business units, optimize resource allocation, reduce operating costs, and enhance profitability.

According to Medtronic's latest financial report, the surgical department achieved revenue growth in the third quarter of the 2024 fiscal year, specificallyRevenue was $2.15 billion, increasing by 3.9% year-over-year.. This growth indicates that Medtronic has maintained a steady growth momentum in the surgical robot market.

With the rapid iteration of new products and technologies in the market, the competition among medical device companies has also entered a higher level. For enterprises,Profitability driven by performance is a signal that the market has been consistently releasing in recent years.

"Divest and restructure businesses, optimize strategic layout, and focus on high-growth potential markets"Not just an isolated case of one or two companies, but a new trend across the entire industry.

Not only Medtronic, but also several international medical device giants are undergoing personnel restructuring and strategic adjustments in their surgical businesses.

At the end of last year, Johnson & Johnson announced that it would sell its subsidiary for $280 million (approximately 2 billion RMB).Sale of Surgical Business Acclarent ENT SubsidiaryTo the neuromodulation leader, Integra LifeSciences.

The sold Acclarent subsidiary is one of the largest providers of balloon sinus dilation globally and one of the main business branches of Johnson & Johnson Medical. As a long-standing and largest department within Johnson & Johnson, the surgical business unit (Ethicon) where Acclarent resides was once a key development focus for the group over the past few decades.

In recent years, although the expansion of Johnson & Johnson's surgical product line has been visibly increasing,Performance contribution and development momentum have shown a gradual decline in recent years.To reduce the overall business burden, Johnson & Johnson has cut its lower-profit surgical branches, providing an opportunity to unleash potential for future key business directions.

In addition to the divestiture, another major change in Johnson & Johnson's surgical business is the appointment of the group chairman earlier this year,Vladimir Makatsaria, Head of Johnson & Johnson's Surgical Business, Announces Departure from Johnson & Johnson Medical.

The adjustments in Johnson & Johnson's surgical business and the changes in its senior management also indicate that the focus of the company’s business development is shifting.

In June last year, BD Medical announced that it had signed a definitive agreement to sell itsSurgical Instrument Platform for SaleTo Irish medical device manufacturer STERIS.

The surgical instrument platform being sold belongs to BD's Interventional segment.Surgical Services, including product lines such as surgical instruments, laparoscopic instruments, and sterilization containers, involving brands like V. Mueller, Snowden-Pencer, and Genesis.

BD stated that this asset divestiture is itsPart of the 2025 Strategy, aiming to streamline the product portfolio and manufacturing network, focusing resources on high-growth markets and innovative solutions. The proceeds from the sale will be used to support the company's key businesses and strategic growth initiatives.

In addition, BD Medical is also undergoing other business adjustments, including cutting approximately one-quarter of the workforce at its manufacturing plant in Drogheda, Ireland, as well as high-level personnel changes, such asAppointment of New President of Surgical Business Unit and Global President of Peripheral Intervention Business Unit.

In fact, there are thousands of ways for enterprises to transform their businesses, but the purpose of such transformations often converges on the same goal—to align internal organizational conditions with the external environment, thereby better achieving growth in their own value.

Whether it is Medtronic, Johnson & Johnson, or BD Medical, the adjustment of their surgical business is only part of a broader strategic transformation aimed at...Drive the company's long-term growth and development through streamlining operations and strategic investments.

AsMedtronicAfter spinning off the patient monitoring and respiratory interventions businesses from the Medical Surgical segment, the surgical robotics and surgical innovations business units were merged into the Surgical Business Unit.Focus on the development of surgical robotics to achieve new revenue growth.

Another exampleJohnson & JohnsonAfter selling off part of its surgical product lines, Medtronic has been continuously adjusting and restructuring its businesses this year. The first move was acquiring Shockwave Medical, the world's first company to provide Intravascular Lithotripsy (IVL) for coronary arteries.Accelerated the expansion of its cardiovascular product portfolio, making the field of cardiovascular interventions the fastest-growing area of innovation.

This was followed by the launch of a two-yearOrthopedic Business Restructuring PlanThis adjustment is part of Johnson & Johnson's strategic "major renewal" initiative, aimed at enhancing the growth rate and profitability of its orthopedics business.

In today's increasingly competitive medical device market, the market environment has significantly raised the demands on enterprises' response speed and execution capabilities; the scale of a company’s operations is not necessarily the bigger the better.

The outdated models with low profitability, overly long decision-making processes, and difficulty in focusing resources all struggle to adapt to the new era's pace.

Against this backdrop, comprehensive enterprises represented by Medtronic, whether choosing"Asset Stripping and Reorganization" or "Upper Management Overhaul" are both strategic moves of "sacrificing for greater gains" to strengthen core advantages.The leap from "diverse" businesses to "core" businesses is both for development and survival.