Endologix CEO: It & #039;s Time for a Leadership Change

It takes a strong leader to admit when his time is up. Endologix CEO John McDermott is that type of leader, which he proved this week with the announcement that he will be stepping down as CEO of the struggling endovascular aneurysm repair (EVAR) company. "The past couple of years have been difficult for the company, employees, and investors, so it's time for a leadership change," McDermott said during the company's fourth-quarter earnings call, according to Seeking Alpha transcripts. McDermott has been at the Irvine, CA-based company for nearly 10 years. He said he will continue in his role until the board hires his replacement. The company's revenue dropped 6.1% in the fiscal year 2017 compared to the fiscal year 2016. Last year the company discovered a manufacturing glitch during routine testing of its top-selling device for abdominal aortic aneurysms (AAA). The company promptly put a hold on all devices that could possibly be impacted by the issue and hosted a conference call to discuss the problem with analysts and shareholders. Endologix resolved its manufacturing issues fairly quickly, but the company’s AFX2 business did not bounce back quite as much as expected in the second half of the year.  The company has a promising endovascular aneurysm sealing (EVAS) system in the pipeline, the Nellix system, but Endologix has had a tough time getting that device to the U.S. market. McDermott also acknowledged during the earnings call on Tuesday that the company had salesf...
Source: MDDI - Category: Medical Devices Authors: Tags: Medical Device Business Source Type: news