3M to spin off Solventum Health Care unit on April 1

3M (NYSE: MMM) + announced today that it filed an SEC Form 10 to set the planned spinoff of its Solventum Health Care business for April 1.

The St. Paul, Minnesota-based medtech company first announced plans to spin off its Health Care unit in June 2022. It named the standalone company, which generates more than $8 billion in annual revenue, “Solventum” in November 2023. Earlier this month, reports suggested that 3M stands to make up to $12 billion from the spinoff, with the move said to remain on track to take place during the first half of the year.

“The spin is on track to be completed in the first half of this year, and we are confident in the value it will create for customers, care providers, patients and shareholders,” 3M CEO Mike Roman said during the company’s earnings call with analysts on Jan. 23.

3M now anticipates the spinoff to take place on April 1, 2024, subject to final board approva…

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3M could reportedly raise up to $12 billion from Solventum spinoff

3M (NYSE: MMM) + stands to make billions of dollars from spinning off its Health Care business into a new company called Solventum, according to a Star Tribune of Minneapolis report. 

The newspaper’s report cited a Fitch Ratings report, which said the up to $12 billion from the Solventum spinoff would come in over the next five years.

3M needs the money as it pays billions of dollars to settle lawsuits. The company is resolving hundreds of thousands of veterans’ lawsuits over faulty earplugs, and it could pay billions more dollars over lawsuits related to the “forever chemical” PFAS.

3M says the spinoff remains on track to take place during the year’s first half.

“The spin is on track to be completed in the first half of this year, and we are confident in the value it will create for customers, care providers, patients and shareholders,” 3M CEO Mike Roman said during the company’s …

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3M says Health Care spinoff still on track

3M (NYSE: MMM) + saw its stock down this morning after its 2024 earnings forecast failed to meet expectations. 

The Maplewood, Minnesota–based manufacturing giant also said it remains on track to spin off 3M Health Care as a new company called Solventum during the first half of the year.

Including its healthcare business, 3M expects adjusted EPS of $9.35–9.75 this year; the Wall Street analyst consensus was $9.81. 3M expects adjusted total sales growth in the range of 0.25–2.25%, reflecting adjusted organic sales growth of flat to up to 2%.

MMM shares were down more than 9% to $97.75 apeice in morning trading. MassDevice‘s MedTech 100 Index was down slightly.

“Our team remains focused on further improving our operational performance, optimizing our portfolio, and reducing risk,” CEO Mike Roman said in a news release.

3M earned $945 million, or $1.70 per share, off of $8 billion in…

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3M picks former NuVasive CEO as president of Medical Solutions

New 3M Medical Solutions President J. Christopher Barry. [Image from NuVasive]3M (NYSE: MMM) + announced that it named Chris Barry EVP and group president of its Medical Solutions Division.

Medical Solutions exists within the 3M Health Care business group. 3M expects to spin off its Health Care business in the first half of this year, after which point it will operate under the name “Solventum.”

Barry, the former CEO of NuVasive, is the latest in a string of high-profile appointments at the 3M unit. Bryan Hanson announced his departure from the corner office at Zimmer Biomet to take over the company in August. The company also landed former Insulet CFO Wayde McMillan as he takes over the same post.

The appointment of Barry goes into effect on March 1. 3M expects him to help drive profitable growth for the unit, which provides advanced wound care solutions.

Barry brings more than two decades of ex…

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3M wins $34.2M contract to develop wound care solutions

3M (NYSE: MMM) + Health Care announced that its Medical Solutions Division received a $34.2 million award from the U.S. Army Medical Research Acquisition Activity.

The award enables 3M to develop a range of new solutions for infection prevention, wound management and wound healing. St. Paul, Minnesota-based 3M plans to lead a program focused on treatment strategies for use in austere settings. This includes those related to mass casualty and delayed evacuation situations.

Additionally, 3M expects its program to assess biofilm control, biomarker monitoring and health in acute trauma situations. It highlighted blasts, burns and gunshot wounds occurring in civilian and military settings.

3M will collaborate with the University of Minnesota Medical School, the 59th Medical Wing Science & Technology Office of the Chief Scientist (59MDW/ST, lead military partner), Naval Medical Research Unit-San Antonio (NAMRU-SA)…

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The top medtech trends of 2023

The top medtech trends of 2023 included innovations such as artificial intelligence, new GLP-1 weight loss drugs and some long-awaited medtech finally receiving regulatory nods.

With health providers facing additional challenges on top of an ever-uncertain economic environment, medtech companies also made major readjustments: layoffs, spinoffs, reorganizations and much more.

Here are the top stories that caught the attention of MassDevice readers and editors in 2023.

Top 2023 medtech trend No. 10: Questions about GLP-1 drugs

U.S. health providers wrote more than 9 million prescriptions in just three months for Wegovy, Ozempic and similar glucagon-like peptide-1 (GLP-1) weight loss drugs, according to analytics firm Trilliant Health. The popularity and initial effectiveness of the new drugs had medtech industry analysts asking a lot of questions about how the potential health benefits could reduce demand for devices. Medical device executives, however, we…

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BD hires new chief medical officer from 3M Health Care

Dr. Ron Silverman is the next chief medical officer of Becton, Dickinson & Co. [Photo courtesy of BD]Becton, Dickinson & Co. (NYSE: BDX) + today named Dr. Ronald “Ron” Silverman as EVP and chief medical officer.

He replaces BD Chief Medical Officer Dr. William Sigmund, who announced plans to retire from BD earlier this year. The change takes effect Dec. 4, 2023.

Silverman comes from 3M Health Care, where he served as SVP and chief medical officer since 2021. He will lead BD’s medical affairs organization across BD’s business units, regions and central team.

Franklin Lakes, New Jersey-based BD said Silverman “will use medical insights and expertise to advance BD’s pipeline of clinically relevant, innovative solutions that align with evolving patient needs, while also contributing to the safety and compliance of BD’s in-market portfolio of products.”

Silv…

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3M has a name for its healthcare business spinoff

3M (NYSE: MMM) + today announced a name for its healthcare business spinoff, which the manufacturing giant expects to complete during the first half of 2024.

What has been 3M Health Care will now be called Solventum.

Here’s how 3M explained the name in its news release:

“Solventum originates from two words: ‘solving’ and ‘momentum.’ ‘Solving’ captures the company’s dedication to finding breakthrough solutions. The organization will listen closely to healthcare professionals and never stop solving for them — and the many lives they enhance globally. ‘Momentum’ symbolizes swifter, nimbler innovation. As the independent healthcare company builds on every achievement, large and small, its momentum propels it past barriers, towards breakthroughs. The new name represents how the independent healthcare company will focus on solving big healthcare challen…

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3M Health Care Group president is leaving ahead of spinoff

Departing 3M Health Care President Jeff Lavers. [Image from Jeff Lavers on LinkedIn]3M (NYSE: MMM) + announced today that Jeff Lavers, group president of its Health Care Business Group, intends to depart the company.

The departure of Lavers — which goes into effect on Dec. 1 — arrives in conjunction with the company’s planned Health Care spinoff. 3M said last month that it expects to complete that spinoff in early 2024.

The company said it plans for new Health Care CEO Bryan Hanson to continue leading the business as it works toward the spinoff. Hanson announced his departure from the corner office at Zimmer Biomet to take over the company in August. The company also landed former Insulet CFO Wayde McMillan as he takes over the same post.

3M Health Care is one of the largest medtech businesses in the world, with more than $8 billion in annual revenue.

The company also noted the departure of Ashish Khan…

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Insulet CFO departs for same post at 3M’s Health Care spinoff

Wayde McMillan. [Image from Insulet]Insulet (Nasdaq: PODD) + announced today that Wayde McMillan decided to leave his role as EVP, CFO and treasurer.

McMillan’s departure goes into effect on Oct. 20, 2023. He intends to join 3M as CFO of its Health Care business, which the company expects to spin off late this year or early next year.

President and CEO Jim Hollingshead called McMillan “a trusted partner and an excellent leader” of the company’s global finance team. He said McMillan helped to advance Insulet’s mission of improving the lives of people with diabetes.

“Wayde has helped make our company stronger and more resilient, ensuring we have the capabilities and financial strength to capitalize on the tremendous long-term growth opportunities Insulet is pursuing,” Hollingshead said in a news release. “On behalf of the board and our entire team, I thank Wayde for his…

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3M is reportedly close to reaching an earplugs lawsuit settlement

3M (NYSE: MMM) + is nearing a settlement with attorneys representing hundreds of thousands of veterans who say the company’s earplugs failed to protect them from hearing loss, according to media reports citing people close to the discussions. 

Bloomberg News and The Wall Street Journal say the manufacturing giant would pay $5.5 billion under the tentative deal. Experts had previously suggested that 3M could end up paying much more if all the cases went to trial.

The news comes more than two months after a federal judge in Indianapolis rejected 3M subsidiary Aearo Technologies’ Chapter 11 bankruptcy filing. 3M had sought to use the bankruptcy as a strategy to shield itself from some liability and reach a deal with plaintiffs’ lawyers, but U.S. Bankruptcy Judge Jeffrey Graham said 3M’s financial support of the subsidiary meant that it was too early to seek protection.

Meanwhile, 3M continue…

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Zimmer Biomet CEO leaves to take over another big medtech

Bryan Hanson will take over 3M’s soon-to-be independent healthcare business. [Image courtesy of 3M]Bryan Hanson has left the corner office of ortho tech giant Zimmer Biomet to become CEO of the soon-to-be-independent healthcare business at 3M, the companies announced today.

Hanson takes over 3M’s healthcare business on Sept. 1.

“I have a deep respect and admiration for what 3M has built in health care — strong brands, quality products, commercial excellence, and customer-driven innovation. I look forward to working with the team to more deeply understand and realize the potential of our business as we accelerate our path forward, and build on a legacy of trusted leadership and medical innovation,” Hanson said in a 3M news release.

Zimmer Biomet is promoting its COO Ivan Tornos to become its new CEO.

“I am grateful for Bryan’s leadership in transforming the company and am now looking forward to leading the team and accele…

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