CareFusion Corp. (CFN) named ResMed Inc. (RMD) chief executive
Kieran T. Gallahue as its chairman and chief executive as the
medical-device company continues working on its turnaround.
CareFusion, which sells systems that dispense medication as well
as drug-infusing systems and respiratory equipment, has posted weak
results in recent quarters. The company last year unveiled
restructuring plans that included a 5% work force reduction,
shedding management layers and support functions.
Gallahue comes to CareFusion with almost 20 years experience in
the health-care industry. Since 2007, he has also served on the
board of cardiology product-developer Volcano Corp. He succeeds
David L. Schlotterbeck, who last year announced plans to retire
sometime this month.
ResMed, a company that makes equipment that treats sleep-related
respiratory disorders, said Gallahue resigned effective Tuesday and
won't receive any severance benefits from his departure. Company
founder and chairman, Peter Farrell, will step in on an interim
basis. The company said it doesn't expect a change in strategy as a
result of the move.
Shares of ResMed slipped 1.6% to $31 premarket. The company has
gained 22% over the past year. CareFusion shares closed at $25.73
Monday and were inactive premarket. The stock is up 5.5% over the
past three months.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com
