Care Fusion Announces New CEO
BY JOHN MCCORMICK, FEBRUARY 2, 2011
Yesterday CareFusion announced that Kieran T. Gallahue will assume the role of Chairman and Chief Executive Officer succeeding David L. Schlotterbeck who announced plans to retire last year. CareFusion's core business is selling systems that dispense medication, drug- infusing systems and respiratory equipment, but they have also made a well publicized foray into kyphoplasty aggressively seeking to pursue Medtronic's high market share in the segment.
In order to pursue the CareFusion role, Gallahue elected to step down as Resmed's President and Chief Executive Officer. He is an 8-year veteran at ResMed where he began as president and COO of the Americas and, after several promotions, became CEO in early 2008. Observers credit Gallahue for growing revenues at Resmed from around $800 million to $1.2 billion. Since 2007, he has also served on the board of Volcano Corp, a well known cardiology company.
CareFusion is continuing a restructuring that was announced last year. The turnaround plans include a 5% work force reduction, shedding management layers and various support functions. Wall Street has shown some optimism that these efforts could result in a strong earnings profile for CareFusion in 2011.
