Boston Scientific (NYSE: BSX) plans to restructure its businesses into three separate reporting segments, while promoting one of its leaders to the formerly vacant role of chief operating officer.
Starting on January 1 of next year, the company will split its cardiovascular group into two: Interventional Therapies and Rhythm Solutions.
The first category will cover interventional cardiology and vascular therapies, as well as its oncology and embolization businesses. The latter will include electrophysiology systems such as pulsed field ablation, plus the Watchman franchise, heart diagnostics, and pacemaker and defibrillator implants. The company’s medical surgical unit will continue to focus on endoscopy, urology and neuromodulation.
At that time, Boston Scientific will also appoint its current cardiovascular group president, Joseph Fitzgerald, as COO to oversee its global commercialization work. Fitzgerald has led the division since 2022, after separately overseeing the interventional cardiology and rhythm management units during his decades-long career with the company.
“Joe’s deep knowledge of our business and markets, strategic leadership and strong track record of execution make him well suited for this role,” CEO Mike Mahoney said in a statement.
“These changes reflect the scale and breadth of our business today and the opportunities ahead,” Mahoney added. “The new operating model will create greater capacity to focus on our long-term growth priorities while enabling our businesses to move faster and remain close to our customers and their patients.”
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Interventional Therapies President Lance Bates will continue to lead that segment, which is also set to absorb Penumbra’s stroke-focused business following the closure of the $14.5 billion acquisition announced early this year. Meanwhile, Nick Spadea-Anello, current president of the atrial fibrillation division, will lead Rhythm Solutions.
The company also announced that Stephen Morse will take over as MedSurg president, following the retirement of current division leader Art Butcher, which was announced last month. Morse, currently president of the Asia-Pacific region, will also hold onto that role as Butcher has during his tenure. Bates, Spadea-Anello and Morse will each report to Fitzgerald.
Boston Scientific previously merged its cardiovascular and cardiac rhythm groups in 2010, when the latter was formerly known as Guidant following its acquisition.
Last month, Citigroup downgraded Boston Scientific’s stock rating as it recovered from a cyberattack while facing increasing competition in its cardiac businesses, including Farapulse pulsed field ablation. However, analysts pointed to the promise of the company’s future pipeline, with major investments in the Tivus ultrasound platform for renal denervation and the valve developer MiRus’ TAVR implant.
