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Device maker Boston Scientific’s CEO Jim Tobin (pictured) is retiring and will be succeeded by Ray Elliott, a company board member and former CEO of orthopedics company Zimmer Holdings, on July 13, the company announced this morning.

Elliott wants to diversity the company’s products, and could bolster the portfolio through deals or partnerships, he told analysts on a conference call. DJ Newswires notes that investors and analysts tend to focus on Boston Scientific’s heart devices and not on its products in pain management, gynecology and urology.

The “sudden and surprising” move should bode well for Boston Scientific because Elliott had a good track record at Zimmer, J.P. Morgan analyst Mike Weinstein says in a research note. Cowen and Co. analyst Sara Michelmore adds in a note that Elliott has been considered a likely successor for the position, and that “Mr. Elliott has a strong reputation with the Street from his tenure at Zimmer, and his appointment should be received favorably despite the seemingly abrupt handover.”

Tobin, who will turn 65 years old in two months, has been at the helm of Boston Scientific for 10 years. The main challenge in the last few years has been to integrate the $28.4 billion acquisition of Guidant, which Boston Scientific won after a battle with J&J, and to show the deal was worth the money, notes DJ Newswires.

Elliott, 59, a retired from Zimmer in 2007. Another of his Boston Scientific priorities is resolving a FDA warning letter issued about problems in the company’s plants, which have taken years to fix, according to DJ.

Photo: Bloomberg

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Incoming Boston Scientific CEO Plans to Diversify Lineup