St. Jude Medical (Photo : wisefly, flickr.com)
St. Jude Medical Inc. announced on Friday a realignment of its product division that will allow the company to reduce pre-tax operating expenses by $50-$60 million annually beginning in 2013. Additionally, the company has named three new executive officers including Donald Zurbay, Rachel Ellingson and Kathleen Chester.
Like Us on Facebook
"The reorganization we have announced today is part of a comprehensive plan to accelerate our growth," Daniel J. Starks, chairman, president and chief executive officer of St. Jude Medical said in a statement. "We are focused on reducing costs, leveraging economies of scale, maintaining the highest level of quality, and funding our entire portfolio of new growth drivers."
In addition to the realignment of divisions, St. Jude says it plans to centralize a number of its "support functions" including technology, human resources, legal, business development and marketing departments and functions. St. Jude's United States and International divisions focused on product commercialization will continue to serve customers based on their existing call points and specialties.
St. Jude's product divisions will now be separated into two distinct operating units. They will include the Implantable Electronic Systems Division (IESD) and the Cardiovascular and Ablation Technologies Division (CATD).
The IESD will be run by Eric Fain and will be comprised of the former Cardiac Rhythm Management and Neuromodulation Divisions. Frank Callaghan will take help of the CATD, which will be made up of the former Atrial Fibrillation and Cardiovascular Divisions.
Additionally, St. Jude has named three new executive officers as part of its reorganization. Donald Zurbay will now be taking on the role of vice president of finance and chief financial officer. Rachel Ellingson has been promoted to vice president of corporate relations and Kathleen Chester has become the vice president, global regulatory.
St. Jude Medical is a pioneer of medical technology development and creates services to assist in treating cardiac, neurological and chronic pain in patients around the world.