CVRx (NASDAQ: CVRX) — maker of the Barostim implantable neuromodulation device for heart failure symptoms — has let go of its Chief Revenue Officer Robert John after a disappointing earnings report last week that also included the disclosure of a U.S. Department of Justice civil investigation.
John, who left Abbott in 2024 to join the Minneapolis-area company, was “terminated” yesterday, according to an SEC filing. Paul Verrastro will assume the role of interim head of sales, effective immediately.
In his new role, Verrastro will lead CVRx’s sales organization while the company conducts a search for a permanent successor, the company said in a news release.
Verrastro has more than 30 years of medical device sales and marketing experience. He has been with CVRx for over five years and recently moved into a new senior advisor role focused on commercial execution support. Prior to assuming this role, he was most recently chief marketing and strategy officer. Prior to joining CVRx, he held sales and marketing leadership positions at Guidant, Boston Scientific and Medtronic, much of that work focused on bringing novel therapies and technologies to market, including implantable cardioverter defibrillators (ICDs) and cardiac resynchronization therapy (CRT).
“Our revised commercial outlook and need to improve commercial execution have led us to make a change in sales leadership,” said Kevin Hykes, president and CEO of CVRx. “I have full confidence in Paul’s ability to lead our sales team while we search for a new leader. He knows our business, our customers and our commercial strategy, and is well respected by the sales force. This continuity will serve us well as we work through this transition.”
The leadership change comes less than a week after CVRx cut its revenue guidance for 2026 from a range of $63 million to $67 million to a range of $58 million to $60 million.
CVRX shares are down more than 55% to $2.44 apiece over the past week.
CVRx’s second-quarter results, announced last week, beat analyst expectations of $15.55 million in total revenue, with actual revenue of $15.7 million. In the SEC filing, the company also disclosed that it received a civil investigative demand from the Department of Justice in May concerning sales and marketing practices.
“The CID requested information and documents regarding an investigation into whether we caused the submission of false claims to government health insurance programs by improperly marketing our device, offering or paying kickbacks to healthcare providers or providing false information to government health insurance programs,” the filing stated.
The company is also searching for a new chief financial officer. Jared Oasheim, CFO of CVRx since 2015, announced his resignation in June of this year. He will stay on at least through August 31 as the company searches for a replacement.
