Former Boston Scientific CEO Tobin joins Aptus Endosystems board | Personnel Moves

James Tobin

Former Boston Scientific Corp. (NYSE:BSX) CEO James Tobin joined the board of directors at Aptus Endosystems Inc., a device company specializing in treating abdominal aortic aneurysms.

Tobin made quite a name for himself while occupying the corner office at med-tech giant Boston Scientific, where he was chief for a decade. He officially retired in July 2009 and was succeeded by Ray Elliott.

Boston Scientific went through unprecedented growth during Tobin’s tenure, with annual sales jumping from $2.8 billion to $8 billion in 2008, peaking at $8.4 billion in 2007. Tobin also led a hiring spree, more than doubling the size of the company – from 12,615 employees when he took the helm to a high-water mark of 28,600 in 2006.

But cost constraints and mounting debt prompted layoffs for about 4,000 workers over his last two years; at the end of 2008, the company employed 24,800 people worldwide.

In April 2009, Forbes named Tobin one of the "most overpaid" CEOs in business. He took home $8.6 million in total compensation in 2008, slightly less than the $9 million he received in 2007. He walked away from the device giant with a severance deal worth $5 million.

Tobin oversaw the acquisition of Guidant Corp., now commonly cited as one of the most misguided buyouts in history. BSX shelled out $27 billion in cash and stock for Guidant after a bidding war with Johnson & Johnson (NYSE:JNJ) over the heart device maker.

Despite its promise, the deal quickly soured. After its May 2006 closing, BSX forced to issue recalls or warnings on about 50,000 Guidant defibrillators, reported that it might take two years to clean up the mess. The deal was crippling in many ways, from public relations to the balance sheet, saddling BSX with nearly $9 billion in debt.

Fortune magazine called it the "second-worst" merger of all time, trailing only the ill-fated Time Warner-AOL merger.

Tobin was also at the helm when another merger went sour.

In June 2004, Boston Scientific spent $740 million on Advanced Bionics, the brainchild of celebrated inventor Alfred Mann.

The Valencia, Calif.-based company, which was posting about $50 million in annual sales at the time, developed cochlear implants and spinal cord neuro-stimulators that were making waves in the field.

Officials at Boston Scientific were bullish on the possibilities, telling analysts that Advanced Bionic sales could reach nearly $4 billion by 2010.

When, after two years, Tobin handed Mann his walking papers, Mann balked and accused Boston Scientific of plotting behind his back. He sued and eventually settled for a portion of the company he founded.

All told, Boston Scientific paid former shareholders of Advanced Bionics $650 million, making the final, $500 million installment in March 2009. AB shareholders in turn paid Boston Scientific $150 million to buy back its auditory business.

"Jim is widely recognized as a leading medical device executive who will bring a combination of strategic vision and business acumen to Aptus Endosystems," Aptus board chairman Alan Kaganov said in prepared remarks. "He’s a proven and skilled executive with broad experience in health care markets and will be invaluable to our efforts to transform and develop an emerging medical device company focused on endovascular aneurysm repair (EVAR)."

MassDevice.com Personnel Moves

Here’s the latest personnel changes from medical device, diagnostics and life science companies around the nation. For more recent hirings and firings, check out MassDevice’s compilation of the latest personnel moves.

RSS From Medical Design & Outsourcing

  • Athermal laser machining cuts bioabsorbable polymers and more
    A the recent MD&M East trade show in New York, Norman Noble, discussed the capability of athermal laser manufacturer. The company has developed the Noble S.T.E.A.L.T.H. (System To Enable Ablation Laser Technology Haz-free). The athermal laser machining process was developed to create precise features in any material, including bioabsorbable polymers, shape memory metals and other […]
  • Exciting possibilities for metallic glass in the medical device world
    Researchers are exploring the potential of metallic glass as a versatile, pliable material that is stronger than steel, with a bevy of possible medical device applications. Yale University engineers have discovered a unique method for designing metallic glass nanostructures across a wide range of chemicals, a technique that could have applications for everything from watch […]
  • Strong Precision Technologies’ medical divisions to unify under MedTorque brand
    Strong Precision Technologies announced on July 2, 2015, that its two medical divisions will now go to market under a single brand, MedTorque. The move reflects the increasing integration of the division formerly known as Inland Midwest with MedTorque, its sister division in Kenosha, WI. “We will continue providing our customers with the personalized level of service […]
  • Olympus offers next-day product replacement guarantee for medical devices
    Olympus, a medical and surgical procedures solutions company, announced that it is guaranteeing next-day replacements for surgical equipment at no additional charge. Olympus is the first surgical product manufacturer to offer this type of guarantee. The service became available to customers with an Olympus Full Service Agreement earlier this year. “Canceled procedures can be costly for healthcare facilities […]
  • More accurate prediction on prognosis in multiple myeloma from SkylineDx
    SkylineDx, a biotechnology company specializing in the development and commercialization of genetic tests, is launching its MMprofiler assay. This test enables clinicians to more accurately predict the prognosis of patients with multiple myeloma (bone marrow cancer) than traditional methods. The MMprofiler measures the activity of 92 genes which are directly or indirectly related to the […]
  • Flint Mobile swaps card reader for camera, accept mobile payments anywhere
    Flint Mobile, the swipe-free mobile payments app, has significantly expanded its payment management and loyalty capabilities for small, service-centric businesses, like the ones run by on-the-go medical equipment professionals. The toggle-free mobile technology makes the process quite simple for both parties, as all transactions are conducted through the mobile device’s camera without the need of any external […]
  • Should scientists be allowed to genetically alter human embryos?
    Scientists have at their disposal, a way to explore the possible prevention of genetic diseases before birth. But should they? Currently, the most promising path forward involves editing the genes of human embryos, a procedure threaded with controversy. An article in “Chemical & Engineering News” (C&EN), the weekly newsmagazine of the American Chemical Society (ACS), parses […]
  • Tackling chronic sinusitis by addressing underlying factors
    The stuffy noses and sinus pressure of head colds are uncomfortable, but for most people, they go away within days. For those with chronic sinusitis, however, those symptoms and others drag on for weeks. Now scientists are onto a potential new therapy that could address one of the underlying factors associated with the condition. They […]
  • Implantable “artificial pancreas” could help diabetes patients control their blood sugar
    Living with Type 1 diabetes requires constant monitoring of blood sugar levels and injecting insulin daily. Now scientists are reporting in the American Chemical Society (ACS) journal, “Industrial & Engineering Chemistry Research,” the development of an implantable “artificial pancreas” that continuously measures a person’s blood sugar or glucose level and can automatically release insulin as […]
  • Drug Deactivation program roll out to all facilities for safe disposal of unused prescription medications
    Verde Technologies announced that New Brighton-based Meridian Behavioral Health, the largest for-profit substance abuse and addiction treatment group in Minnesota, has become its most recent partner in the deactivation and safe disposal of prescription medications including methadone. Meridian is the first behavioral health group to roll out the Deterra Drug Deactivation System to all 17 […]
  • Lophius Biosciences introduces T-activated ImmunoScan Cocktail
    Lophius Biosciences announced the commercial launch of T-Track ImmunoScan and T-activated ImmunoScan Cocktail. Based on a proprietary and very specific cocktail of stimulants in combination with the Company’s T-activation technology, T-Track ImmunoScan and T-activated ImmunoScan Cocktail specifically target different cell types involved in both the adaptive and innate immune system. T-Track ImmunoScan and the T-activated […]

Leave a Reply