Healthcare Firms Face Rising Activist Investor Pressure, Medtronic Adds Directors

Activist investors have significantly increased pressure on major healthcare companies in the past year to enhance performance and drive growth, often resulting in board changes and strategic reviews. Medtronic, a leading medical device maker, appointed two new independent directors and formed committees to boost performance after Elliott Investment Management acquired a large stake; CEO Geoff Martha emphasized renewed focus on growth, more mergers and acquisitions, and increased reinvestment in high-growth areas. Other companies facing activist involvement include Avantor, Charles River Laboratories, Gerresheimer, Illumina, and Henry Schein, with demands ranging from board refreshment to cost-cutting and strategic sales. Medtronic's first-quarter results showed robust growth and an improved outlook, with activist participation fueling optimism among analysts and institutions, who have increased their holdings and raised price targets. Elliott's influence at Medtronic has been pivotal in pushing for changes, as highlighted by multiple reports and expert commentary. Overall, activist investors are playing a critical role in reshaping healthcare firms to unlock value and accelerate innovation.