(Reuters) – Medical products maker Baxter International said on Monday its CEO José Almeida will retire effective immediately, after nearly a decade as the company’s top boss.
Almeida’s retirement comes on the heels of Baxter completing a $3.8 billion spinoff of its kidney-care unit. During his tenure, Baxter agreed a $10.5 billion deal to bring hospital bed-maker Hill-Rom under its wing, and shifted focus away from its biopharma business.
Almeida, who also held the roles of board chair and president at Baxter, will serve in an advisory capacity through Oct. 31, the company said.
“A change will be welcome for investors,” Evercore ISI analyst Vijay Kumar wrote in a note, adding that some investors might question the “abrupt nature of transition”.
Kumar said Almeida’s tenure was a “tale of two cities” for Baxter’s shares – they more than doubled to $90 in the initial years of his appointment, only to give up gains during the post-pandemic years. The company’s shares were down 2.2% at $31.85 in premarket trading.
Baxter’s board appointed Brent Shafer, lead independent director, as chair and interim CEO and initiated its search for a permanent candidate.
The company reiterated its forecast of 4% to 5% operational sales growth and about 16.5% adjusted operating margin in 2025.
Its current forecast does not include any impact from the recently announced U.S. tariffs on imports from Mexico, Canada and China, Baxter said.
The company is working to quantify the impact of tariffs and plans to provide an update with its fourth-quarter results on Feb. 20.
Baxter has previously said it expects hurricane-related disruptions at its North Carolina IV solutions facility to hit financials this year.
Baxter appointed Heather Knight, its current head of medical products and therapies unit, to the role of chief operating officer. Knight will continue to lead the unit on an interim basis.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Mrigank Dhaniwala and Krishna Chandra Eluri)
Comments