Globus Medical (NYSE:GMED) said yesterday that it named David Demski as its new chief executive officer, effective immediately, replacing David Paul who is stepping down due to health issues but will stay on as executive chairman.
Demski has served as a Globus senior executive since 2003 and operated as CFO from 2003 to 2008, moving to the role of prez and COO afterwards. In 2015, Demski was promoted to president of emerging technologies, overseeing expansions into imaging, navigation, robotics and orthopedic trauma, the company said.
“No one is or could be more well suited to be CEO of Globus Medical than Dave. He has been with us since the very start of this company, has led virtually every aspect of its operations, and has been a significant contributor to the company’s success to date. During the 7 years when Dave served as president, among his many responsibilities were direct leadership of both our domestic and international sales forces. During that time, and as he took over responsibility for our emerging technologies division, Dave honed a talent for optimizing sales team performance and developing and commercializing new products. His skill set is precisely what we need to continue our focus on profitable growth. With Dave taking over day-to-day management of the company, I can focus on the things I am most passionate about and the areas in which I can bring the most value to our shareholders: strategy and technology innovation. Globus Medical was built on delivering groundbreaking solutions to surgeons and their patients, and we will not stray from our core mission. We have built a strong company and will move forward with the same vision and passion for which we are known. I look forward to being part of the company’s continued success,” Paul said in a press release.
Paul will stay on to focus on strategic initiatives, Globus said, and will take time to recover from an unnamed health condition. He is expected to recover over the next several months, and the company said he will remain “actively involved” during his recover and thereafter.
The move, while unexpected, isn’t a net negative, according to Leerink Partner analyst Richard Newitter.
“We don’t think this CEO transition signals any risk of the company’s rev growth re-acceleration story (or sustainability of above-average profit margins),” Newitter wrote in a letter to investors.
The company reiterated its guidance for the full year, Newitter said, and coupled with the fact that Demski is a seasoned internal GMED exec, makes the move neutral to the company’s outlook.
The Danvers, Mass.-based company said it is engaging in a search for a replacement, with former CFO Robert Brown returning from retirement as a consultant until a new CFO has been recruited and hired. Brown served as Abiomed’s CFO from Dec. 2008 to July 2015.
“We wish Mike Tomsicek all the best as he explores other opportunities and thank him for maintaining high standards of financial compliance and quality. We also welcome back Bob Bowen, who has been instrumental to Abiomed’s success over nearly the last decade,” prez & CEO Michael Minogue said in a press release.
Abiomed said that VP and corporate controller Ian McLeod will serve as principal financial officer and principal accounting officer on an interim basis until a permanent replacement has been hired.
The Eden Prairie, Minn.-based company said that the new representatives joined from “top tiered medical device organizations,” and that the newly hired individuals will focus on enhancing existing account penetraiton and new business development.
“We are excited to continue our sales team expansion with the onboarding of 6 new, deeply experienced sales representatives who will aid in the accomplishment of our growth goals. We have established a comprehensive sales training program to optimize time to productivity for our new sales representatives in support of our commercial strategy,” chair & CEO John Erb said in a prepared statement.