During a time of industry consolidation, Medtronic, Inc. finally has a new CEO and chairman.
The company announced on May 11 that Omar Ishrak, Ph.D., will take over for departing Chairman and CEO, Bill Hawkins on June 13. Hawkins announced his retirement at the end of last year and the search for his replacement took longer than expected, sparking rumors of some disagreement among board members.
GE Track Record
Ishrak is leaving as president and CEO of GE Healthcare Systems, a $12 billion division of GE Healthcare supported by approximately 20, 000 employees in 120 countries. Ishrak was also a senior vice president of GE Corporation and a member of the GE Corporate Executive Council.
A Medtronic statement said Ishrak brings, “exceptional experience and a strong track record to Medtronic. During his 16-year tenure at GE Healthcare, he consistently drove top and bottom line growth in a number of leadership positions. He also helped to transform the way in which GE Healthcare innovates, manufactures and sells products, particularly in emerging markets. Under his guidance, the Clinical Systems Division almost doubled in revenues to approximately $5 billion from 2004 to 2009. In addition, he transformed GE Healthcare’s Ultrasound business, growing revenues from $400 million in 1998 to $1.8 billion in 2010.”
Before joining GE Healthcare in 1995, the company said Ishrak spent more than 13 years in senior technology development and business management roles at Philips Ultrasound, Diasonics Inc. and Elbit Ultrasound Group. He earned a Bachelor of Science degree and Ph.D. in electrical engineering from the University of London, King’s College. Ishrak is a member of the board at The Blood Center of Wisconsin and is on the Health Leadership Council of the Save the Children Foundation.
Industry Consolidation
Medtronic is the largest medical device manufacturer in the world and controls well over 40% of the spine market. The company does not compete in the rest of the orthopedic market. Ishrak is joining Medtronic just as a major competitor in spine, Johnson & Johnson, is taking over Synthes. Johnson & Johnson’s worldwide chairman of the company’s Medical Devices and Diagnostics Group is another GE Healthcare System alumnus, Michael Mahoney.
Will Ishrak follow Mahoney’s example and move to further consolidate the orthopedic industry by looking to add a major hip and knee maker to Medtronic’s portfolio? We’ll ask him after he warms up his new chair.
