Stryker appointed President and CEO Kevin A Lobo to Chairman of the Board.
The new appointment went into effect yesterday. Stryker's Non-Executive Chairman William U. Parfet will assume the role of lead independent director. Mr. Lobo previously served as Group President of Stryker Orthopaedics.
In a news release statement, Mr. Parfet expressed excitement for the new leadership and said, "We believe the company is well positioned to build on our history while continuing to adapt to the changing needs of the healthcare market place."
The healthcare market place is indeed changing; several recent transactions in the orthopedic device market space specifically have challenged Stryker — once an undisputed giant. The company's second quarter financial report was released last week, showing positive growth but disappointing returns so far from the 2013 acquisition of MAKO Surgical.
Yesterday, Zacks released an analysis reaffirming the company's "neutral" rating. Analysts were concerned about strong competition from Johnson & Johnson as well as other growing medtech companies — Zimmer and Medtronic — with their recent billion-dollar acquisitions of Biomet and Covidien.
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