Omar Ishrak, chairman and CEO of Medtronic, will retire next year, the medical-device manufacturer announced Wednesday.
Geoff Martha, the executive vice president of Medtronic's restorative therapies group, will take over on April 27, 2020, and Ishrak will begin the new position of executive chairman in which he will counsel and guide leadership, oversee CEO succession and manage the company's long-term strategic plan.
Martha will lead Medtronic's operating groups and regions in the newly created role of Medtronic president on Nov. 1, when he will also join the board. Brett Wall, president of the company's brain therapies division, will succeed Martha.
"As Omar approaches the company's mandatory executive officer retirement of 65 years of age next year, we have ensured Medtronic has the right leadership at the right time to advance its Mission and deliver shareholder return through a seamless transition," Scott Donnelly, Medtronic's lead director and chairman, president and CEO of Textron, said in prepared remarks.
Prior to his current role, Martha was head of Medtronic corporate strategy and business development, where he led the company's 2014 acquisition of Covidien. In July 2014, he was named the chief integration officer and became president of restorative therapies in 2015.
"This plan and its timing enable Geoff and I to partner on achieving Medtronic's key financial performance goals as well as delivering on our critical pipeline milestones, including several important product launches," Ishrak said in prepared remarks.
Medtronic reported a net income of $4.65 billion on net sales of $30.56 billion in 2019, up from $3.1 billion of net income on $29.95 billion of net sales in 2018. The 2% boost in sales was driven by its restorative therapies and diabetes groups.
The company's cardiac and vascular group accounted for the largest share of its portfolio, increasing 1% year over year, followed by minimally invasive therapies, which dropped 3%. Its restorative therapies group has made up a larger share of its sales, growing more than 11% since 2017. The smaller diabetes division has grown by 24% over that span.
Medtronic started an outcomes-based agreement with Aetna in June 2017 for Type 1 and Type 2 diabetes patients. Medtronic will pay Aetna rebates for patients who switch from multiple daily injections of insulin to Medtronic's insulin pump if their health does not hit specified outcomes, according to the agreement that aims to increase accountability and lower the cost of care.