Outset Medical (Nasdaq: OM) today filed with the SEC to confirm that board member Jim Hinrichs resigned due to his affiliation with another kidney care company.
Hinrichs resigned in connection with a significant affiliation with Vantive, the new standalone kidney care company separating from Baxter. He also resigned from his post as audit committee chair for the Outset board. The resignation has no connection to any disagreement with Outset related to its operations, policies or practices, according to the company.
Baxter this week agreed to a $3.8 billion deal with private equity firm Carlyle Group to sell the business.
Carlyle made its investment in Vantive in partnership with Atmas Health, a collaboration among three industry executives — one of those being Hinrichs. Atmas focuses on acquiring and building a market-leading healthcare business. Vantive provides products and services for peritoneal dialysis, hemodialysis and organ support therapies. Outset, meanwhile, develops home dialysis technology.
Following Hinrichs’ resignation, effective Aug. 15, the Outset board approved a decrease in the size of the board. It now consists of seven directors, rather than eight.
Additionally, the company appointed Patrick T. Hackett, who has served on the board since 2019 and is a member of the audit committee, as audit committee chair, filling the vacancy left by Hinrichs’ departure. The board determined that Hackett qualifies as an “audit committee financial expert.”
Outset also said the board approved transitioning the role of nominating and corporate governance committee chair. Effective Aug. 15, the position went from Hackett to Karen Drexler.