Ray Elliott, the former boss of Zimmer who believed that an engagement with Wall Street Analysts and competitors was a full-body contact sport, is back as head of a medical device company. Since his tenure at Zimmer showed competing for physician’s business was not for the faint of heart, it’s appropriate the Ray takes over a heart defibrillator company, Boston Scientific.
Elliott wasted no time getting back in the groove when he told analysts during a conference call that, “We have good but beatable competitors.”
He takes over Boston Scientific at the end of July as long-term Chief Executive Officer Jim Tobin retires. News of the announcement spiked the company’s stock to over $10 for the first time since last October.
Ray is reuniting with his old pal Sam Leno, who became Boston Scientific’s CFO after he also left Zimmer in 2007.
Ray’s tenure at Zimmer has been lauded as being highly successful as the company’s market capitalization expanded four-fold during its time as a public company under his leadership and the stock was trading at an all-time high as he left in 2007.
He also left right before the U.S. Attorney put the hammer to orthopedic companies for allegedly “buying” surgeon business through sham consulting contracts. Zimmer was particularly signaled out as a hard competitor for surgeon business.
Wachovia analyst Larry Biegelsen noted that Elliott “does not come without controversy.”
Biegelsen said that Elliott “has a reputation as a strong executor who wrings costs out of the system.” But following post-Elliott blows to Zimmer’s growth, margins and share price, “investors place some of the blame on Elliott because they believe he did not invest in the business at an appropriate level, ” the analyst added in a Dow Jones news story.
“I find that one really hard to swallow, ” Elliott told Dow Jones. He said the company enjoyed a decade-long successful run while greatly expanding research and development efforts. “It wasn’t merely a short-term gain.”
One thing that won’t change in his new role is that Ray still loves the ladies.
In his call with analysts he stressed an interest in investing in the parts of Boston Scientific’s business that aren’t as well-known, such as urology and women’s health. Maybe he’ll bring the Blue Ladies of the gender knee back to perk up sagging hearts.
Dang, we’re nostalgic all over again.
