Mike Mahoney is leaving Johnson & Johnson (J&J) to replace Ray Elliott as president and CEO of Boston Scientific Corp.
Elliott, the former head of Zimmer Holdings, Inc. before taking over Boston Scientific, had announced his intention to step down in May.
To accommodate post-employment obligations to J&J, Mahoney will become Boston Scientific’s president on October 17 and is expected to become CEO next year on November 1, 2012. Elliott will remain on the company’s board and assist Mahoney through the end of the year.
Unusual Transition
Larry Biegelsen, senior analyst at Wells Fargo, said what’s interesting to him about this September 14 announcement is that J&J and Boston Scientific have both agreed to this unusual transition plan. “It strikes us as a friendly agreement between two companies that have been fierce rivals over recent years and have litigated against each other extensively in the stent space. Given J&J’s recent exit from the stent business, we think this announcement could fuel additional speculation about J&J’s eventually acquiring Boston Scientific.”
Mahoney was in charge of J&J’s DePuy orthopedics business before taking over as head of J&J’s medical device and diagnostic group in January. Before joining DePuy, Mahoney was with General Electric Medical Systems. He will be in charge of Boston Scientific’s cardiac rhythm management and endoscopy businesses starting in October, and will take over the neuromodulation business next August.
