Boston Scientific's new CEO begins tenure
NATICK, Mass. (AP) — Michael Mahoney is officially taking charge at Boston Scientific, becoming its CEO Thursday after a one-year stint as president at the medical device maker.
Mahoney's transition period before becoming CEO skirted non-compete agreement with his previous employer, Johnson & Johnson. Mahoney had served as chairman of Johnson & Johnson's medical device business. J&J has said the arrangement at Boston Scientific was appropriate.
Mahoney, 47, succeeds interim CEO William Kucheman, and he joined the company board.
Boston Scientific said shortly after Mahoney joined the company as president in October 2011 that he would become the next CEO in November 2012.
Kucheman became interim CEO after Ray Elliott stepped down unexpectedly in May 2011 just two years after he was brought in to turn the company around. The announcement shocked investors and sent the company's stock down sharply.
Boston Scientific had been struggling to integrate a huge acquisition and revive anemic sales of its key implants.
Shares have fallen from close to $8 in May 2011, to just above $5 today.
Mahoney's appointment has been viewed favorably by industry watchers.
Boston Scientific, based in The Natick, Mass., posted a third-quarter loss earlier this month as legal fees and restructuring expenses weighed down already-sluggish sales. The company also reduced its sales and earnings guidance for the full year.