Danaher names insider Julie Sawyer Montgomery as CEO

Life sciences firm Danaher said on Monday it has appointed insider Julie Sawyer Montgomery as its CEO, succeeding Rainer Blair, effective October 1.

Blair will retire and serve as a senior adviser until March 31, 2027, it said, adding that there is no change to its previously announced third-quarter and full-year forecast.

• Sawyer Montgomery, who joined Danaher in 2017, has played a key role in transforming its diagnostics platform from about $6 billion in revenue at the time to nearly $11 billion today.
• She has also led the recent buyout of Masimo, best known for the devices hospitals use to measure blood-oxygen levels, and the pending acquisition of StatLab, a medical products maker.
• "We view the board's selection of Julie Montgomery to lead this shift very positively. In our view, the diagnostics segment is one of the most well run, while also being one the most under-appreciated by investors," said Barclays analyst Luke Sergott.
• Danaher, which makes tools used in developing and testing medicines, cut its full-year core revenue growth forecast last month and reported weaker-than-expected revenue in its biotechnology business.
• The results contrasted with improving trends in the life sciences tools market as biotech and pharmaceutical companies increase spending on research and manufacturing following a prolonged post-pandemic slowdown.
• "Investors might infer that Q2 results and subsequent stock response accelerated the timing (of the appointment)," RBC Capital Markets analyst Dan Leonard said, adding that the transition occurred earlier than expected.