Jim Tobin has retired as the CEO of Boston Scientific. Mr. Tobin will be succeeded by Ray Elliott, a true medical device veteran. Although his career also spans the food & beverage and communications industries, Elliott’s medical device experience includes Zimmer, Cybex, Centerpulse and American Hospital Supply. He is a very active member of AdvaMed having chaired the orthopedic sector of the medical device industry organization.
In an interview, Mr. Elliott said he will look at diversifying Boston Scientific further outside its core in cardiac devices, citing urology and gynecology as possible expansion areas.
During Mr. Tobin’s tenure as CEO, Boston Scientific reported net losses totaling $3 billion and saw its share price fall 44%. In no uncertain terms, he is being replaced. His biggest win was the 2004 launch of the Taxus drug-eluting stent, which became the industry’s top seller even though J&J’s Cypher was first to market. But the company drew the ire of the FDA over quality control which led to a three-year new products ban that allowed rivals to gain ground. Ironically, Tobin is shown here waxing poetic about the company’s commitment to quality in a video which has seen very little viewership online.
Finally, Boston Scientific has struggled to perform since its fabled acquisition of Guidant in 2006. Riddled with debt after winning a bidding war against J&J, the company’s bonds have fallen to junk status.
Time (and Mr. Elliott’s leadership) will tell whether Boston Scientific can produce consistent financial results and regain its prominence in the industry.
