How Solventum plans to create value after spinning out of 3M

Bryan Hanson, soon-to-be CEO of 3M’s Solventum healthcare spinoff, is no stranger to major changes in medtech.

He had direct involvement in medtech’s largest spinoff, when Covidien separated from Tyco. Hanson then led the integration of Covidien into Medtronic in medtech’s largest-ever acquisition. While at Medtronic, he also led the divestiture of its Patient Recovery business to Cardinal Health.

After several years in the corner office at orthopedic giant Zimmer Biomet, he’s now tasked with leading the planned Health Care spinoff at 3M.

“I have a lot of knowledge and experience in transformation,” Hanson said during Solventum’s inaugural Investor Day event. “[They were] all different transformations, but what you’ll find is some commonality in every transformation. There are always differences, but there’s always commonality as well. So I will bring experience to make sure that this transforma…

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Roman to move out of CEO post at 3M, successor named

3M CEO Mike Roman [Photo courtesy of 3M]3M  (NYSE: MMM) + announced today that it selected William M. Brown to succeed Mike Roman as CEO.

Brown’s appointment to the corner office goes into effect on May 1, 2024. Roman will shift to the role of executive chair of 3M’s board of directors with the same effective date.

“Bill’s strong track record as a CEO for a global technology company makes him the right leader for 3M,” Roman said in a news release. “He brings a wealth of experience in strategic leadership, innovation, and operational excellence to 3M. I look forward to working with him to build on our momentum in my new role as executive chairman.”

News of the shift at the top of 3M comes at an interesting time, as the manufacturing giant prepares to spin off its Solventum healthcare business.

Brown, 61, previously served as chair and CEO at L3Harris Technologies, an a…

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3M board approves Solventum healthcare spinoff

3M (NYSE: MMM) + announced last week that its board of directors approved the planned spinoff of Solventum, its Health Care business.

Board approval further solidifies the company’s previously announced intent to spin Solventum into a standalone company on April 1.  The St. Paul, Minnesota–based manufacturing giant 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.

Following board approval, 3M applied to list Solventum on the New York Stock Exchange under the “SOLV” ticker.

Solventum will include more than 20,000 employees, led by former Zimmer Biomet CEO Bryan Hanson as its CEO. The company also landed former Insulet CFO Wayde McMillan as he takes over the same post. Carrie Cox will serve as board chair and former NuVasive CEO Christopher Barry is the new Pre…

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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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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.”


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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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How can medtech companies innovate their business models?

From left: Veronica Acurio, Gio Di Napoli, Brian Montgomery and Simran Sabharwal talked business model innovation at AdvaMed’s The MedTech Conference.

In an ever-changing medtech space, how do companies keep up with the pace of change? How do companies adjust and innovate their business models to reflect that?

Leaders from some of medtech’s biggest names attempted to answer some questions around that at AdvaMed’s The MedTech Conference yesterday. (Want to find out more? Leaders from major medical device companies will discuss innovation in surgical robotics, diabetes tech, cardiovascular and neurovascular tech, oncology and more at DeviceTalks West, Oct. 18–19 in Santa Clara. Register here.)

A panel on “Disruptive Business Models in Medtech: The Next Frontier of Value-Centric Innovation” included:

Veronica Acurio, president of the Medical Solutions division, 3M; Gio Di Napoli, president of the GI operating unit at Medtronic; B…
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