Former Avanos Medical executive Michael Greiner has left the company. Greiner was CFO and chief transformation officer at the pain and nutrition company before becoming interim CEO in October. However, when Avanos appointed a permanent CEO, it did not offer him a position comparable to the one he held before taking the interim role.
David Pacitti, the former head of the Americas at Siemens Healthineers, was appointed CEO last month.
The lack a comparable offer led Greiner to leave Avanos to pursue other opportunities, according to a Friday securities filing. Avanos said Greiner’s exit constitutes “a qualifying termination.” The company will make a $2.1 million severance payment to the departing executive, who will also receive his prorated bonus for 2025 and $50,000 for working as a consultant for one month.
Jason Pickett, vice president, tax and treasurer at Avanos, will serve as interim CFO. Stifel analysts said in a Sunday note to investors that they are encouraged that the appointment of an established Avanos financial executive to the interim position “will enable the company’s fundamental operations to continue running in a ‘business-as-usual’ manner as the company navigates a permanent CFO search.”
However, the analysts are still concerned about the turnover at the top of the company. Pacitti joined Avanos as CEO last week. Pickett started as interim CFO on the same day.
“With these two C-suite changes, we wonder if the pace of the company's positive transformational initiatives take a breather as the new senior leadership team settles into place,” the analysts said.
The analysts added that Greiner was “actively involved in multiple successful initiatives driving forward the company's multi-year turnaround efforts and portfolio realignment.” Greiner was involved in the sale of Avanos’ respiratory health business, exit from slower-growing and lower-margin product areas and inking of tuck-in acquisitions.
Following the changes, Avanos is focused on pain devices and products for supplying nutrients and fluids to the body via feeding tubes. Pain management sales fell 3% in the fourth quarter compared to the year-ago period, but the decline was offset by a 12% jump in sales at the larger enteral feeding business.
Avanos is forecasting mid-single-digit growth in its specialty nutrition systems and flat to low-single-digit growth at its pain franchise in 2025.
