10.22.15
Deerfield, Ill.-based Baxter International Inc. has invited Boston Scientific Corp. CEO Mike Mahoney to its board, adding a director who turned around one of the nation’s biggest medical-device companies.
Mahoney joins Baxter’s board during a time of transition for the company. Baxter CEO Robert Parkinson announced his plans to step down earlier this year after spending more than a decade at the company. Mahoney’s nomination was encouraged by Third Point LLC, Baxter’s biggest shareholder, which played a role in recruiting him, according to a person familiar with the deliberations who declined to be identified discussing non-public information.
Third Point wants Baxter to replicate Mahoney’s track record at Marlborough, Mass.-based Boston Scientific, where he returned the company to growth after a four-year losing streak, boosted operating margins and shifted into faster-growing product areas. He joins Third Point partner Munib Islam on the board and fulfills the company’s Sept. 30 agreement to appoint a second independent director to the group.
“It adds some credibility to the board in terms of expertise in med-tech for the CEO succession planning,” said Jonathan Palmer, an analyst at Bloomberg Intelligence in New York. The companies have very little product overlap since Baxter focuses on hospital products and Boston Scientific on cardiovascular and other implantable devices, he said.
Baxter primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.
Mahoney joins Baxter’s board during a time of transition for the company. Baxter CEO Robert Parkinson announced his plans to step down earlier this year after spending more than a decade at the company. Mahoney’s nomination was encouraged by Third Point LLC, Baxter’s biggest shareholder, which played a role in recruiting him, according to a person familiar with the deliberations who declined to be identified discussing non-public information.
Third Point wants Baxter to replicate Mahoney’s track record at Marlborough, Mass.-based Boston Scientific, where he returned the company to growth after a four-year losing streak, boosted operating margins and shifted into faster-growing product areas. He joins Third Point partner Munib Islam on the board and fulfills the company’s Sept. 30 agreement to appoint a second independent director to the group.
“It adds some credibility to the board in terms of expertise in med-tech for the CEO succession planning,” said Jonathan Palmer, an analyst at Bloomberg Intelligence in New York. The companies have very little product overlap since Baxter focuses on hospital products and Boston Scientific on cardiovascular and other implantable devices, he said.
Baxter primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.