University of Utah Health has landed a CEO, while Merit Medical Systems' President has Resigned Following an Internal Investigation
A neurosurgical oncologist, Bob S. Carter, M.D., Ph.D. (the Neurosurgeon-In-Chief for Mass General Brigham, Massachusetts General Hospital and Brigham and Women’s Hospital, as well as the current William and Elizabeth Sweet Endowed Professor in Neuroscience at Harvard Medical School), has been tapped as the new CEO for University of Utah Health and as the University of Utah's new Sr. Vice President for Health Sciences.
Separately, Utah-based Merit Medical Systems has announced the resignation of its President, Joseph C. Wright, following what the company says were "... allegations regarding his conduct, which Merit’s independent directors investigated with the assistance of independent counsel. The allegations were unrelated to Merit’s operations or financial performance."
Two of largest healthcare organizations in the state of Utah each recently announced major executive changes.
Specifically,
- Salt Lake City-headquartered University of Utah Health (and the University of Utah) has named a world-renowned neurosurgeon/oncologist as its CEO (while also tapping him as the Sr. Vice President for Health Sciences at the UofU), while separately
- South Jordan-based Merit Medical Systems (NASDAQ:MMSI) has announced that its President has tendered his resignation following an investigation regarding undefined allegations, "... allegations ... unrelated to Merit’s operations or financial performance."
Meet the Incoming Bob S. Carter, M.D., Ph.D.
According to the recent UofU news announcement, the university has successfully recruited Bob S. Carter, M.D., Ph.D. (one of the world's top neurosurgical oncologists), to become
- The Chief Executive Officer of University of Utah Health, as well as
- The new Sr. Vice President for Health Sciences for the University of Utah.
In his dual roles "on the hill,"
Dr. Carter "... will oversee a $6.3 billion academic health system comprised of nearly 27,000 faculty and staff, and 6,400 students."
Additionally, he will be responsible for managing
- "... the academic and research enterprises at U of U Health, with
- "its nearly $500 million research portfolio,
- "across five schools and colleges and
- "a health sciences library."
Dr. Carter currently serves as the William and Elizabeth Sweet Endowed Professor in Neuroscience at Harvard Medical School and Neurosurgeon-In-Chief at Mass General Brigham, Massachusetts General Hospital and Brigham and Women’s Hospital.
Additionally, Dr. Carter
- Has over 18 years of experience as a researcher and professor of neurosurgery at Harvard Medical School,
- Spent seven years at the University of California, San Diego, including serving as
— Chair of the faculty of its School of Medicine, and
— Co-director of the Moores Cancer Center Brain Tumor Program at UCSD, as well as - Co-director of the Brain Tumor Program at Mass General.
He was also elected to the National Academy of Medicine last fall.
“With his own history of research and clinical excellence, Dr. Carter brings a unique ability to run an academic medical center going through exceptional growth and institutional change,” said University of Utah President, Taylor Randall, Ph.D. “With his leadership, we will ensure U of U Health continues to innovate, educate and provide high quality, responsive health care.”
Dr. Carter is slated to join University of Utah Health and the UofU in mid-February 2025.
The Known (and Unknown) about the Departure of Joseph C. Wright from Merit Medical
After a close to 20-year career at Merit Medical (including being promoted to President from Chief Commercial Officer in May 2024), Joseph C. Wright tendered his resignation from the company on 16 December 2024, a resignation effective 03 January 2025 (meaning he is no longer with the company).
According to the news release distributed by Merit at the close of the stock market that afternoon (4pm ET), the company stated that
"... prior to Mr. Wright’s resignation, Merit had received notice of allegations regarding his conduct, which Merit’s independent directors investigated with the assistance of independent counsel."
Additionally, Merit said that
"The allegations were unrelated to Merit’s operations or financial performance."
With the departure of Wright, the Merit Board of Directors tapped its Chairman, CEO, and Founder (Fred Lampropoulos) to take over the role of President.
Contextually, for 2023 (its last full year for which data is available), Merit had net income of $94.41 million on sales of $1.26 billion.
Conversely, through the first nine months of 2024 (ended September 30), Merit had sales of $1 billion and a net income of $92.4 million vs. sales of $932 million and net income of $66.8 million on a Year-over-Year basis (2024 vs. 2023). In other words, Merit produced a 38% jump in profit through the first nine months of 2024 vs. 2023 on a YoY basis.
As of market close last Friday (10 January 2025), Merit's market cap stood at $5.6 billion.
Other Merit Medical and Wright-related Info
In addition to the company news release, Merit also filed a Form 8-K with the U.S. Securities and Exchange Commission about Wright's resignation.
No information about the allegations against Wright were included within the Form 8-K, nor could I uncover even a whiff about the essence of such allegations.
That said, both Wright and Merit "... entered into a Separation Agreement and Release of All Claims ..." to which Wright is (was) entitled to certain "... payments, equity awards and other benefits ..." up to his resignation date of 03 January 2025.
Additionally, the Form 8-K explained that
"... Wright released certain claims against Merit and its affiliates, and agreed to certain restrictive covenants, including covenants relating to confidentiality, non-solicitation of Merit employees and customers and non-disparagement of Merit or its officers, directors or employees."
That said, if I read the Form 8-K correctly, it says Merit intends to file the Wright Separation Agreement with its 2024 Annual Report (aka, Form 10-K) for the year ended 31 December 2024.
Who knows what additional info might be included in that Form 10-K?!?!?!
{NOTE: Although all publicly traded companies have up to 90 days to file their annual reports with the SEC, over the past five years, Merit has filed its Form 10-K with the SEC within two months of its year-end.}
That said, there was, however, one surprising statement buried near the end of the Form 8-K, specifically:
"Mr. Lampropoulos is the brother-in-law of Mr. Wright."
Now that was unexpected!!!
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