Medtronic Executive Leadership Transition and Strategic Restructuring Update

Compiled by: Chocolate

Medtronic Senior Executives Depart

Recently, according to PR Newswire, Sean Salmon, Executive Vice President and President of Medtronic’s Diabetes Operating Unit, has been appointed as Executive Vice President and President of Cardiovascular Products, effective January 1, 2021. Salmon will continue to lead the Diabetes Operating Unit and remain a member of the company’s Executive Committee.

Salmon succeeded Mike Coyle, who will leave Medtronic on December 31 to assume the role of CEO at a publicly listed company.

According to reports, Salmon joined Medtronic in 2004 and held senior management positions in the cardiovascular field for 15 years, including leading businesses in coronary and renal denervation, peripheral interventions, cardiac surgery, and structural heart. He was subsequently appointed as the leader of Medtronic’s Diabetes business and became a member of the Medtronic Executive Committee in 2019.

During his tenure in the Cardiovascular division, Salmon led Medtronic’s drug-eluting stent portfolio, commercialized multiple product innovations in transcatheter aortic valve replacement (TAVR), and revitalized Medtronic’s renal denervation clinical program.

It is understood that Medtronic is currently undergoing significant business restructuring. On September 14, Cebulan Medical Devices confirmed from authoritative sources that Medtronic plans to split its existing operations into twenty business units and will streamline its operating model in the coming months. It was also confirmed that the restructuring has already commenced in September, with Business Units (BUs) being reorganized into Operating Units (OUs).

In early September, according to Bloomberg, Medtronic CEO Geoff Martha announced a corporate restructuring aimed at enhancing revenue generation. Leveraging its core strengths, Medtronic has formulated a strategy comprising “targeted adjustments” and “comprehensive restructuring.” These two approaches differ in scope and focus, and this dual-pronged reform represents the plan Medtronic will implement in the future.

On November 27, the China Medical Device Industry Summit and the 2020 Sinopharm Medical Device Ecosystem Conference were held in Wuhan. At the conference, Gu Yushao, Senior Vice President and President of Greater China at Medtronic, stated that Medtronic’s future development would be guided by four major strategies.

First, accelerate market access to facilitate the clinical adoption of new therapies and products;

Second, deepen market development; the innovation center being built in Chengdu will play its due role in driving industrial development in western China;

Third, promote local manufacturing to localize the entire industry supply chain and accelerate the integration of clinical practice and innovation;

Fourth, align the company’s internal value chain layout with the broader external industry ecosystem to jointly empower local innovation.

Danaher Executive Changes

According to PR Newswire, Danaher’s Board of Directors has recently appointed Jennifer Honeycutt as Executive Vice President of the company, with responsibility for Beckman Coulter Life Sciences, Integrated DNA Technologies, Leica Microsystems, Molecular Devices, Pall, and the clinical and research mass spectrometry businesses (Phenomenex and SCIEX).

This new appointment decision took effect in January 2021, and upon appointment, Honeycutt will become an executive officer of the company.

It is reported that Honeycutt joined Danaher in 1999 when Danaher acquired Hach, subsequently holding a series of positions and gradually assuming general management responsibilities. Honeycutt began his career at Hach in 1991 as a research chemist.

Prior to this, on May 6 of this year, Danaher’s official website announced that the company would undergo a CEO transition.

On September 1, 2020, following the retirement of Thomas P. Joyce Jr., President and CEO of Danaher Corporation, Rainer M. Blair, then Executive Vice President, will succeed him as President and CEO of Danaher. Joyce will remain with Danaher as a Senior Advisor until February 28, 2021.

In 1989, Thomas P. Joyce Jr. began his career at Danaher, and has served as President and Chief Executive Officer since September 2014.

It is understood that in 2018, Danaher’s business comprised four major segments: Dental, Life Sciences, Diagnostics, and Environmental & Applied Solutions, accounting for 14%, 33%, 31%, and 22% of total revenue, respectively. Danaher’s total revenue in 2018 was approximately $19.9 billion.

In 2019, Danaher’s dental business, one of its four core segments, was spun off and conducted an initial public offering (IPO) in the United States. According to annual report data, Danaher’s revenue reached $17.91 billion in 2019, a year-over-year decrease of 9.96%.

Danaher recently announced its financial results for the third quarter of 2020, with quarterly sales reaching $5.883 billion, a year-on-year increase of 34%, and net profit amounting to $842 million, a year-on-year increase of 30%.

Senior Executive of a Leading Domestic Medical Device Company Resigns

In addition to Medtronic and Danaher, senior executives at multiple domestic medical device companies have also undergone recent changes.

On December 19, Meikang Biological announced that the Company’s fourth Board of Directors had approved the appointment of Mr. Zou Jihua as General Manager, and the appointments of Mr. Yuan Chao, Ms. Xiong Huiping, Mr. Fang Liang, and Mr. Shen Min as Deputy General Managers. Meanwhile, Mr. Yuan Chao was appointed as Chief Financial Officer, Ms. Xiong Huiping as Secretary to the Board of Directors, and Ms. Wu Xiaohan as Securities Affairs Representative.

It is understood that Meikang Bio primarily engages in the research and development, production, sales of in vitro diagnostic (IVD) products, and medical diagnostic services. Its main business activities include IVD reagents and instruments, independent third-party medical diagnostic services (regional medical laboratory sharing centers), and reagent raw materials.

On September 24, Shinva Medical issued an announcement stating that it had received the resignation application of Mr. Xu Shangfeng, Chairman of the Board of Directors. Due to reaching the retirement age, Mr. Xu Shangfeng applied to resign from his positions as Chairman and Director of the 10th Board of Directors, Director and Member of the Strategy Committee, Member of the Audit Committee, Member of the Remuneration and Appraisal Committee, and Member of the Nomination Committee.

Meanwhile, Shinva Medical convened the Fifth Meeting of its 10th Board of Directors, and upon voting by the attending directors, Mr. Wang Yuquan was elected as Chairman of the Company.

On August 12, Beijing Leadman Biochemistry Co., Ltd. issued an announcement stating that its Board of Directors had received a written resignation report from Mr. Lin Lin, the Chairman of the Board. Due to job reassignment, Mr. Lin Lin requested to resign from his positions as Chairman of the Board and Director, and simultaneously stepped down as Convenor of the Board’s Strategic Committee. Following his resignation, he will no longer hold any position within the company.

On August 11, Yuwell Medical issued an announcement stating that the Board of Directors had received a written resignation report from Mr. Zhao Chunsheng, the Company’s Vice President (Deputy General Manager). Mr. Zhao Chunsheng has requested to resign from his position as Vice President (Deputy General Manager) due to personal reasons. Following his resignation, Mr. Zhao Chunsheng will no longer hold any position within the Company.

On January 11, Blue Sail Medical issued an announcement stating that it had received a written resignation report from Mr. Li Bingrong, a director and President of the company. Due to reaching the retirement age of 70, Mr. Li Bingrong applied to resign from his positions as a company director, President, and member of the Board’s Strategy Committee, as well as from his roles in subsidiaries. Following his resignation, Mr. Li Bingrong will no longer hold any position within the company.

Meanwhile, the Board of Directors has agreed to appoint Ms. Liu Wenjing as President of the Company. It is understood that Ms. Liu Wenjing served as General Manager of Blue Sail Medical from 2005 to April 2013, and has been serving as Chairman since April 2013.