Medtronic CEO takes the helm amid investor speculation:
This article was originally published in Clinica
Medtronic's president and COO, William Hawkins, today succeeds Arthur Collins as the company's CEO. Mr Hawkins takes the helm amid speculation over whether he can increase the company's stock price and build up investor confidence (see Clinica No 1247, p 7). Missed earnings estimates is among the problems faced by the company. On August 21, the company's shares ended down 2% in after-hours trading following the announcement of weaker than expected first quarter sales in the company's implantable heart-regulating devices. Other problems include delays in getting new products to market and the lengthy transformation of insulin pump company MiniMed into a strong performing subsidiary. If Mr Hawkins cannot address these problems, some analysts believe that Medtronic will risk becoming an acquisition target. In-depth analysis to follow.