Just prior to the close of their proposed merger, Cyberonics, Inc. CYBX and Sorin S.p.A. jointly announced the two remaining designees to the Board of Directors of LivaNova – the combined company to be formed post completion of the deal. The new company is expected to come into effect (as projected earlier) from Oct 19, 2015 (12:01 AM London time).
Notably, the first eight designees to the combined company’s board have already been declared by the two companies. Four of these were designated by Sorin and the other four by Cyberonics. Sorin's Chief Executive Officer (CEO) André-Michel Ballester will take on the role of the CEO of LivaNova and serve as a member on its board. Alongside, Dan Moore, Cyberonics' current CEO, has been named as the non-executive Chairman of the board of the new company.
The other members originally selected from Sorin were Rosario Bifulco, Sorin's Chairman; Massimo Tononi, a member of its current board of directors and Francesco Bianchi, a former member of its board. However, Massimo Tononi was recently replaced by Stefano Gianotti as the company’s designee to the LivaNova board of directors.
The esteemed panel of members selected from Cyberonics comprises Hugh Morrison, Cyberonics' current Chairman; Alfred Novak, a member of the company’s Audit and Nominating & Governance Committees and Arthur Rosenthal, Chairman of its Compensation Committee and a member of the Audit Committee.
The ninth member of the combined company, as earlier planned, has finally been appointed by Cyberonics and Sorin following an extensive search. The companies have zeroed in on Dr. Sharon O'Kane as the ninth independent director of LivaNova. The background information on Sharon O'Kane will be available in the prospectus related to the LivaNova ordinary shares listing which will be released next week.
In September, Cyberonics announced that it will appoint Vivid Sehgal as Chief Financial Officer (CFO) of LivaNova once the deal is over.
Per the companies, this neuromodulation and cardiovascular alliance will result in the formation of three business units under the combined entity, namely Cardiac Surgery, Cardiac Rhythm Management and Neuromodulation. LivaNova is expected to benefit from the developing market for active implantable treatments for sleep apnea, with investments aimed at the under-addressed obstructive sleep apnea (OSA) and central sleep apnea (CSA) markets.
The implantable devices were recently launched in select European countries. Additionally, LivaNova is expected to introduce new percutaneous mitral valve replacement/repair products with estimated initial market entry in 2017.
Zacks Rank
Currently, Cyberonics sports a Zacks Rank #1 (Strong Buy). Opko Health, Inc. OPK, Masimo Corporation MASI and Nevro Corp. NVRO are some other Zacks Rank #1 stocks that investors may consider in the medical instruments sector.
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