McEvoy, a longtime Johnson & Johnson MedTech executive, also joins the company’s board. She succeeds Jim Hollingshead in the corner office of the Acton, Massachusetts-based automated insulin delivery technology developer. Hollingshead agreed with Insulet’s board that his employment ceases today, April 28, and he resigned from the board.
In a news release, Insulet said the board and Hollingshead mutually agreed that it was the right time to implement a leadership transition. He also entered into a consulting arrangement with Insulet to facilitate a smooth transition.
“Insulet continues to successfully deliver on its financial, clinical, and operational objectives while advancing its mission to improve the lives of people with diabetes, and we are confident this leadership change will further the Company’s success,” said Timothy Scannell, chair of Insulet’s board. “Having stepped into the CEO role from the board of directors, Jim has led Insulet through a very strong period of growth and development.
“We’re grateful for his contributions, and we wish him the best in his future endeavors.”
Hollingshead’s tenure included the launch of the flagship Omnipod 5 automated insulin delivery system. Insulet also became the first to market with automated insulin delivery for the type 2 diabetes population.
“As Jim hands over the reins, Insulet is the clear global leader in our market, and poised to grow and scale even further.”
Hollingshead called it “a privilege” to serve as Insulet’s CEO.
“I will be forever grateful to all of my colleagues at Insulet for their passion and dedication for improving and simplifying lives for people living with diabetes, which has led us to tremendous success, and more importantly helped us to reach hundreds of thousands of customers all over the world,” Hollingshead said. “I look forward to seeing all that will be achieved going forward.”
More about new Insulet CEO Ashley McEvoy
Scannell said the company conducted a thorough search. It sought to find a “dynamic executive with a sophisticated understanding of the medtech market.”
McEvoy brings that and “a passion for improving lives” to the table. From 1996 to 2023, she served in leadership roles of increasing responsibility at Johnson & Johnson. Most recently, she held the post of EVP and worldwide chair of Johnson & Johnson MedTech. There, she led a business of 60,000 global employees with revenues totaling more than $30 billion.
While leading J&J MedTech, she accelerated revenue growth and expanded the business’ presence in higher-growth markets. Earlier in her tenure there, McEvoy served as group chair of Vision and Diabetes Care for six years. She also held the post of worldwide president of Ethicon for three years. Additionally, McEvoy served as president of McNeil Consumer Healthcare for three years.
In October 2023, she announced her surprising resignation as worldwide chair of J&J MedTech. She stayed on as an advisor until February 2024 as Tim Schmid assumed leadership of the medical device business.
“In Ashley, we found not only a world-class leader with nearly three decades of healthcare leadership experience, but a visionary with unique insight into operating at the intersection of medtech and consumer health,” said Scannell. “She brings a track record of driving growth and innovation through market and category creation, including as EVP and worldwide chair of Johnson & Johnson’s MedTech business, and has deep diabetes experience, having previously served as group chair of Johnson & Johnson Vision and Diabetes Care.”
Scannell says Insulet believes McEvoy’s leadership can deliver even greater success. He says he expects her to strengthen growth and innovation while delivering superior returns for investors.
McEvoy said Insulet “has transformed diabetes care,” highlighting the company’s growth potential, talent, access and manufacturing capabilities. She also noted the company’s “deeply loyal customers” as key differentiators and a foundation for success.
“At this critical moment in the company and market’s evolution, Insulet has a unique opportunity to enhance innovation, drive global expansion, and win the hearts and minds of more providers and consumers by thinking differently about the experiences and needs of people with diabetes. I am excited to work alongside Insulet’s accomplished team to do just that – and in the process, continue to revolutionize diabetes care and make life easier for people living with diabetes, while driving value creation for shareholders.”
Update on financial outlook
Insulet expects to exceed its previously provided first-quarter revenue guidance and plans to raise its guidance for the full year. The company plans to provide further details on its first-quarter earnings call on May 8 after the markets close.
In light of its CEO transition, Insulet also postponed its planned investor day, previously scheduled for June 5. It expects to reschedule it to a later date.
The analysts’ take
BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang called the McEvoy appointment a “surprise transition.”
“We are surprised by the suddenness of the announcement,” the analysts wrote. “After speaking briefly with IR this morning, we have confirmed that this was a result of the board’s succession planning and had nothing to do with Mr. Hollingshead’s performance. He was praised as a great leader who nearly doubled revenue during his tenure and secured type 2 label expansion.”
Despite their surprise, they lauded the experience McEvoy brings to the role.
“We think that Ms. McEvoy is a highly qualified executive who is well-suited for a CEO role and this position in particular, given her extensive experience in both the medtech and the diabetes care sectors,” they wrote. “This is a strong fit and we think Ms. McEvoy’s background and experience may allow PODD to accelerate its commercial presence in the type 2 market.”
