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Courtesy of and Zimmer Biomet

Zimmer Biomet Lands Bryan Hanson for CEO Job

Robin Young • Wed, December 20th, 2017

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Bryan Hanson, most recently president of Medtronic’s $9 billion Minimally Invasive Therapies Group, is Zimmer Biomet’s new CEO and member of the Board of Directors effective immediately.

Zimmer’s search for a new CEO took a full five months and, according to at least one Wall Street analyst, Hanson was the best of the bunch.

Dan Florin, who’d served most ably as Zimmer’s interim CEO, will resume his previous CFO and SVP role full time.

Wall Street is cheering the selection. One major investment bank, Wells Fargo, raised its opinion of the entire company based on the Hanson choice.

Reaction of ZBH’s Top Three Wall Street Analysts

  1. Lawrence Biegelsen, Wells Fargo: “We are upgrading shares of ZBH to Outperform from Market perform as we believe the announcement of the new CEO today (12/19), Bryan Hanson, will be a positive catalyst for the stock as Mr. Hanson was the best of the available candidates.”

    “In addition to Mr. Hanson’s much needed steady leadership at ZBH, we believe investors will start to appreciate ZBH’s strong pipeline over the next 3-6 months.”“We are raising our price target to $140 which assumes 16.0x our 2019 EPS estimate of $8.74.”

  1. Joanne K. Wuensch, BMO Capital Markets: “Hanson brings with him over 20 years of experience…and has medical technology industry experience, including leadership positions at large, global franchises, which we believe positions him well for the job and it should be well received by the Street.”

    “Hanson’s first task is to address manufacturing issues at Zimmer Biomet’s North Campus facility, which has been unable to consistently manufacture several key products at the supply level needed to meet demand. The second task is setting 2018 guidance, and with it increasing Street confidence that the company is moving towards manufacturing resolution and improving revenue growth.”

    “In sum, with 20 years of medical technology experience, including integrating and divesting assets for large, diversified companies, we view this as a wise hire.”

  1. Mike Matson, Needham and Company: “We believe that Hanson can reignite ZBH’s revenue growth by addressing its manufacturing issues, reinvesting in higher growth businesses and pursuing M&A of higher growth assets.”

    “While Hanson doesn’t have prior public company CEO experience, we believe he has had extensive investor interaction in his prior roles and is well-regarded by investors.”

    “We think that ZBH should: focus on its robotics program in recon, reinvest more heavily in its non-recon businesses where market growth is higher and pursue M&A that further diversifies ZBH and adds to revenue growth.”

Bryan Hanson’s Resume

According to Zimmer, Hanson (50 years old) is joining Zimmer Biomet after serving as a member of Medtronic's Executive Committee and as the Executive Vice President and President of Medtronic's Minimally Invasive Therapies Group, where he oversaw and provided strategic direction to this approximately $9 billion business (Zimmer’s revenue run rate is $7.8 billion).

Prior to Medtronic, Hanson was Group President of Covidien's Medical Devices business. In 2011, as Surgical Solutions Group President, he transformed two of Covidien's largest divisions—Energy-based Devices and Surgical Devices—into one global business unit.

Hanson also serves on the board of AmeriCares, an emergency response and global health organization committed to saving lives and building healthier futures for people in crisis.

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