Boston Scientific picks new CEO

by Brendon Nafziger, DOTmed News Associate Editor | September 14, 2011
Michael Mahoney (Credit: Boston Scientific)
Boston Scientific Corp. named Michael F. Mahoney its new president Tuesday evening, as it outlined a nearly year-long leadership transition plan. Mahoney, 46, who chairs Johnson and Johnson's medical devices and diagnostics division, will step in as president on Oct. 17, and then also as CEO on Nov. 1, 2012. He will gradually take up new responsibilities over the next year.

Current CEO and president Ray Elliott, who announced plans to step down last May, will do so when Mahoney becomes president. Hank Kucheman, who heads Boston's cardiology segment, its biggest business, will fill in as CEO until Mahoney takes the spot next year.

Analysts called the move a "positive step forward" for Natick, Mass.-based Boston Scientific. Rick Wise, with health care investment bank Leerink Swann, noted that Mahoney brings "fresh blood" and "an outstanding background" to the company.

"Mahoney has a long track record of experience at some of the world's premier health care companies (JNJ and GE, among others), with a total of 20+ years of experience in the healthcare space," Wise told investors in an e-mail note. "Mahoney's appointment is also coming sooner than some investors might have feared, resolving a major uncertainty for BSX."

Mahoney has served as worldwide chairman of JNJ's medical device and diagnostics division, which generates around $25 billion in yearly sales, since January 2011. Before that, from 2007 to 2010, he served as worldwide chairman of JNJ's DePuy franchise. And he ran Global Healthcare Exchange (GHX), a supply chain provider, from 2001 to 2006.

Mahoney got his start at General Electric Medical Systems, where he led business units in diagnostic imaging, cardiology and other fields, for about 12 years, Boston Scientific said.

At the end of the year, the current boss, Elliott, 61, will retire and then join Boston Scientific's board of directors, the company said.

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