NATICK, Mass. (AP) -- Boston Scientific Corp. said Thursday its board has named Ray Elliott as president and CEO to succeed Jim Tobin, who is retiring from the medical device maker.
Elliott, 59, led Zimmer Holdings, which makes orthopedic implant and other products, for six years until retiring in May 2007. Elliott was also a member of the Boston Scientific board from 2007 until earlier this year.
Tobin, who turns 65 later this year, has been CEO of Boston Scientific for 10 years.
The Natick, Mass.-based company said the appointment is effective July 13.
Wall Street applauded the move, which re-teams Elliott with Boston Scientific Chief Financial Officer Sam Leno. The two worked together at Zimmer from July 2001 until Leno joined Boston Scientific in 2007. Boston Scientific said Zimmer's market capitalization and revenue quadrupled during Elliott's tenure.
JPMorgan analyst Michael Weinstein said the change in leadership was "sudden and surprising," but predicted investors would be pleased because of Elliott's track record.
In midday trading, Boston Scientific shares jumped 88 cents, or 9.3 percent, to $10.39. The stock is down 25 percent over the last 52 weeks, although it has risen about 23 percent in 2009.
Boston Scientific makes the bulk of its revenue from sales of implantable heart devices like pacemakers and defibrillators, which shock the heart back into a normal rhythm when it begins beating irregularly. The company also sells stents, which are mesh-metal tubes that are used to prop open arteries after surgery clears out fatty plaque.
Sales of both devices have been stunted due to safety concerns and product recalls, however. Boston Scientific expects full-year revenue of $8 billion to $8.5 billion, which is about even with the $8.05 billion it reported last year.
The company's financial results have been affected by a variety of one-time issues. In the fourth quarter, it took a $2.6 billion writedown related to its buyout of heart device maker Guidant Corp. in 2006, and in the first quarter of this year, Boston Scientific set aside $237 million after a federal court found three of its stents infringed upon a patent held by Johnson & Johnson.