Medtech in a Minute: Board Room Battles and Lingering Questions

Masimo Investors Have Lingering Questions

After a heated proxy battle between Masimo and Politan Capital Management, shareholders elected both of Politan's nominees – Michelle Brennan and Quentin Koffey. Politan is a 9% shareholder of Masimo – an approximately $800 million investment that makes the firm one of Masimo's largest shareholders. The outcome raised several key questions for Masimo investors, including what it will mean for the company's controversial consumer business.

Illumina Is at a Turning Point

After an intense proxy battle with Carl Ichan, an activist investor, followed by the resignation of CEO Francis deSouza, Illumina appears to be at a major turning point. The biggest lingering question following these moves centers around the fate of Grail, a liquid biopsy company that originially spun out of Illumina, which the company re-acquired last year without regulatory approval.

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Surgalign Goes Bankrupt

Surgalign's financial struggles have come to a head. The surgical device and biologics company has filed for Chapter 11 bankruptcy, through which it plans to hold an auction and sell off all its assets. The move comes just a few months after the company reduced its workforce by about 20%.

Plummeting COVID-19 Test Sales Trigger Layoffs

Biocartis is the latest to announce layoffs after suffering declining sales of COVID-19 tests. The company is slashing its global workforce by 25%, or 140 positions. As part of the reorganization, Piet Houwen, the company's chief operating officer, will resign effective September 1.

BD Sells Surgical Instruments and Related Assets to Steris

BD has agreed to sell its surgical instruments to Steris for $540 million. The sale includes V. Mueller and Snowden-Pencer laparoscopic instruments, and Genesis sterilization containers, as well as three manufacturing facilities in St. Louis, MO; Cleveland, OH; and Tuttlingen, Germany. Roughly 360 employees who support the platform will transfer to Steris when the deal closes.