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

  • Molex delivers ISO 13485-compliant, medical-grade surgical cables from its class 100,000 clean room facility
    Molex, LLC operates a fully ISO 146441-1:1999 Class 8-certified clean room, satisfying strict particulate contamination levels specified by ISO-compliant requirements. Located in Thailand, the facility has less than 100,000 particulates (≥0.5µm) per cubic foot of air and manufactures a variety of ISO 13485-compliant medical cables and surgical cables used in operating theatres, hospitals, laboratories and […]
  • Swept-Source OCT: Patent license agreement between Massachusetts General Hospital and Heidelberg Engineering
    Heidelberg Engineering has entered into a patent license agreement with Massachusetts General Hospital (MGH) in Boston. The agreement grants global and exclusive rights to 77 basic patents and patent applications which relate to swept-source OCT technology and its application in ophthalmology. Spectral domain OCT has become indispensable to eye care professionals worldwide to diagnose and […]
  • MIT’s MultiFab presents a stark challenge to incumbent 3D Printer manufacturers’ hardware, software, and business Models
    MIT’s Computational Fabrication Group recently announced the MultiFab, a low-cost 3D printer that can combine up to 10 different resins in one part and also includes a 3D scanning system to identify and fix errors during production. According to Lux Research, these capabilities are rare in commercial 3D printers today due to the manufacturers’ need […]
  • AVX releases Accu-P MP medical grade film chip capacitors for medical devices
    AVX Corporation, a leading manufacturer of passive components and interconnect solutions, has released a new series of thin film chip capacitors specifically designed to meet the demanding performance specifications for implantable medical devices. Delivering extremely tight capacitive tolerances, exceptionally repeatable performance, and remarkably low ESR and high Q at high frequencies—including VHF, UHF, and RF […]
  • RIVANNA commences manufacturing of its Accuro device
    Rivanna Medical announced that it has begun manufacturing its FDA-cleared Accuro device, a handheld and untethered smart-phone-sized device that is designed to guide spinal anesthesia with automated 3D navigation technology in addition to ultrasound imaging of abdominal, musculoskeletal, cardiac and peripheral vascular anatomies. The product will be launched at the ASA annual meeting in San […]
  • FDA seeks public input on Quality Metrics guidance
    by Oliver Wolf, Senior Product Manager, MasterControl In line with the general shift towards risk-driven approaches in the quality management world, FDA is now taking steps towards applying those same principles to its own auditing schedule. At the end of July, the Center for Drug Evaluation and Research (CDER) and the Center for Biologics Evaluation […]
  • First ‘Ear Wear’ for Active Adults Debuts with MDHearingAid FIT
    If you’ve burned out your ears with earbuds, headphones or decades of other audio abuse but aren’t ready for your grandmother’s hearing aids, not to worry! The new MDHearingAid FIT gets you back in the game with a tiny, FDA-registered, one-size-fits-most solution that doesn’t block your ear canal like old-fashioned in-the-ear hearing aids. The FIT feels […]
  • CardioGenics enters into manufacturing agreement with Ontario-based Plasticap
    CardioGenics Holdings, developer for the In-Vitro-Diagnostics (“IVD”) testing market, announced that it has entered into a manufacturing agreement with Plasticap of Ontario, Canada, pursuant to which Plasticap will manufacture CardioGenics’ proprietary self-metering cartridges for its QL Care analyzer. The term of the agreement is three years and the purchase price for each cartridge shall be […]
  • MTD Micro Molding releases micro materials menu
    MTD Micro Molding, a long-time leader in micro-injection molding, has released an updated “Materials Menu” of materials that can be successfully micromolded to help guide engineers at medical device companies. Material selection is a crucial step in product manufacturability. The correct material drives tolerance, dimension, strength, usabality, speed-to-market, design, critical features, and cost. Through MTD’s […]
  • MedTech Chat: Elastic technology for drug delivery
    Dr. Zhen Gu and Dr. Yong Zhu from North Carolina State University are both co-senior authors of a research paper describing their recent work. Dr. Gu, Dr. Zhu and other researchers from North Carolina State University and the University of North Carolina at Chapel Hill have developed a drug delivery technology that consists of an […]
  • B. Braun’s OEM Division offers large bore normally closed low-pressure check valves
    Infusion therapy and pain management device manufacturer B. Braun said today it is offering normally closed large-bore low-pressure check valves through its valve-focused contract manufacturing OEM division. The valves, offered by Bethlehem, Pa.-based B. Braun, are designed for the intermittent injection of fluids during medical treatment and open automatically when pressure is applied. The newly […]

Leave a Reply