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Hologic Management Shakeup Includes New CEO, Board Members

NEW YORK (GenomeWeb News) – Hologic today named former Stryker executive Stephen MacMillan as its president and CEO, replacing Jack Cumming less than five months after Cumming returned for a second stint as head of the company.

MacMillan also was named to Hologic's board. Separately, the company also named Jonathan Christodoro and Samuel Merksamer, both of whom are managing directors at Icahn Capital, to its board.

"The board unanimously concluded that his track record of delivering strong financial results and creating shareholder value makes him the ideal chief executive officer for Hologic," Hologic Chairman David LaVance said in a statement. "Hologic has made progress in reviewing the strategy, leadership, and cost structure of each of its businesses, and the board is confident that under [MacMillan's] leadership the company can leverage its strong product platforms to drive value for shareholders and other key stakeholders."

MacMillan, who was previously president and CEO of medical device company Stryker, joins Hologic as it tries to turn around a business that some investors perceive as underperforming. In July Cumming replaced Rob Cascella as president and CEO in a second go-round at the firm. Cumming was previously CEO at Hologic between 2001 and 2009.

Last month after the Bedford, Mass.-based firm said that Fiscal Year 2014 revenues are expected to be down year over year, some analysts lowered their ratings for the company's stock.

Carl Icahn also said in November that he intended to purchase more than 12 percent of Hologic's outstanding shares, prompting the company to implement a poison pill provision. In naming Christodoro and Merksamer to its board, Hologic today said the appointments are "pursuant to a settlement agreement with" Icahn.

In a research note, ISI Group's Vijay Kumar said that today's appointments "are a clear byproduct of recent discussions between Icahn" and Hologic's board of directors.

"[W]hile this does not rule out the sale of assets, we think the new team will be most mindful of maximum value creation, which may be achieved through restructuring/small divestitures and ultimate sale of larger assets (once profits/growth are improved and leverage is more manageable)," Kumar said.

During MacMillan's tenure at Stryker, the company grew its revenues to $8.3 billion in 2011 from $2.8 billion in 2003, while its stock appreciated more than 62 percent, Hologic said.

MacMillan also served as a senior executive at drug firm Pharmacia, and worked at Proctor & Gamble and Johnson & Johnson. He was president of the joint venture between J&J and Merck. He currently is on the board of Alere.

Hologic also said today that it appointed Burton Drayer as a scientific advisor to the firm. Drayer is chairman and director of the department of radiology at Mount Sinai Medical Center.

In morning trading on Monday, shares of Hologic were down almost 2 percent at $21.88 on the Nasdaq.

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