Dive Brief:
- U.K.-based medtech Smith & Nephew announced Monday it's bringing in a new chief executive officer, Roland Diggelmann, effective Nov. 1.
- Diggelmann, who headed up the diagnostics division at Roche before departing in 2018, has been a member of Smith & Nephew's board for the past year and a half. Prior to his time at Roche, Diggelmann worked in the orthopaedics sector at Zimmer Biomet.
- Current CEO Namal Nawana is stepping down Oct. 31 but will stay on in an advisory role until year's end. British media sources reported Nawana was locked in a dispute about compensation. Smith & Nephew stock was down nearly 10% in morning trading after the announcement
Dive Insight:
Smith & Nephew is a key medtech player in the orthopaedics market, particularly for hip and knee replacements. Competitors include Stryker, Johnson & Johnson's DePuy Synthes and Zimmer Biomet.
Diggelmann headed up Roche's diagnostics unit and spent 12 years in the orthopaedics sector at what is now Zimmer Biomet.
But the company also ventures beyond traditional orthopaedics to areas like surgical imaging systems and wound care. In September, it introduced the LENS 4K system, a visualization platform for end-to-end 4K imaging designed for surgeons performing arthroscopic procedures. Also last month, it launched the PICO 7Y, a new single use negative pressure wound system that allows two wounds to be addressed at the same time.
In July, the company upgraded its full-year revenue growth guidance from 3% to 4%, citing positive momentum across the business globally, including the Chinese market up more than 30%.
In a potential nod to the pay dispute, the company said it was working with shareholders on a remuneration policy to be weighed at a general meeting in April 2020.
