(Corrects paragraph 1 to "striking a deal" from "as part of a
deal" and paragraph 8 to drop "hiring of MacMillan")
March 14 Medical device maker Hologic Inc
appointed a former Johnson & Johnson executive
as chief operating officer, three months after naming a new
chief executive and striking a deal with activist investor Carl
Hologic, which makes screening tests for cancer and other
diseases, also announced the planned retirement of Chief
Financial Officer Glenn Muir, who has served in the position
Eric Compton, who will immediately assume the newly-created
COO role, also worked with consumer giant Procter & Gamble Co
, and has a record of successfully turning around flagging
businesses, Hologic said in a statement.
The company has been struggling with cuts in hospital
spending, a lack of reimbursement for one of its mammography
systems, and its troubled $3.75 billion acquisition and
integration of Gen-Probe Inc.
"We believe these senior management changes are positive
steps toward turning Hologic around after numerous pricey
acquisitions and in light of several secular headwinds to
growth," Cowen and Co analyst Doug Schenkel wrote in a note.
With Friday's appointments, Hologic's entire top rank would
have changed since December, when the company named former
Stryker Corp CEO Stephen MacMillan as its top executive.
MacMillan's appointment came a month after billionaire
investor Ichan took a stake in the company and pushed for
representation on the board in an effort to boost shareholder
Icahn, Hologic's largest shareholder with a 12.5 percent
stake, struck a deal with the company resulting in the
appointment of two directors backed by Icahn.
Icahn was not immediately available for comment on Friday.
Hologic shares closed at $21.50 on Thursday on the Nasdaq.
(Reporting by Esha Dey in Bangalore; Editing by Savio D'Souza)