Avanos Medical Announces Executive Changes and Severance Terms

Avanos Medical (TASE:BLWV), Inc. (NYSE:AVNS), a leading provider of medical devices and supplies with a market capitalization of $572 million, has announced significant changes in its executive team, including the departure of Michael C. Greiner, the company’s former Interim Chief Executive Officer. The announcement came today following a series of executive transitions that began earlier this month. The company’s stock has faced significant pressure, trading near its 52-week low of $11.90, down nearly 47% over the past six months. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, with analysts maintaining a hold recommendation.

On Monday, Greiner, who had served as Avanos’s Interim CEO since October 28, 2024, stepped down from his role. This decision followed the appointment of Dave Pacitti as the new CEO on April 14, 2025. Greiner, who had been with Avanos since 2020, initially as Senior Vice President and Chief Financial Officer and later as Chief Transformation Officer, is leaving to pursue other opportunities after not being offered a comparable position to his previous roles.

According to the company’s statement, Greiner’s departure is considered a qualifying termination under Avanos’s Severance Pay Plan, which entitles him to a severance payment of $2.1 million. Additionally, he will receive a prorated bonus for 2025 based on actual company performance, to be paid in 2026 alongside the annual bonuses of other senior executives. His severance package also includes six months of paid COBRA premiums and $50,000 for a one-month consulting engagement with Avanos.

As part of the transition, Greiner’s special equity awards, granted during his tenure as Interim CEO, will vest immediately. However, all other unvested equity awards will terminate as of today.

In a related move, Avanos has also amended its consulting agreement with Blueprint Strategy and Management Consulting, LLC, ending Warren J. Machan’s role as Interim Chief Financial Officer as of Monday. Machan will continue to provide consulting services to Avanos until the end of April, with a fixed monthly payment of $60,000.

Avanos has appointed Jason M. Pickett as the new Interim Chief Financial Officer and Treasurer, effective from Monday. Pickett, who has been with the company since 2014 and has over 30 years of experience, previously served as Vice President, Tax, and Treasurer.

The company has yet to determine Pickett’s compensation for his new role, and further details will be disclosed in an upcoming amendment to this SEC filing. This series of executive changes comes as Avanos continues to adapt its leadership structure to meet the evolving needs of the healthcare industry. Despite recent challenges, InvestingPro data shows the company maintains a healthy financial position with a current ratio of 2.37, indicating strong liquidity. Analysts project a return to profitability in 2025, with an EPS forecast of $1.16. For deeper insights into Avanos’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US equities with detailed analysis and actionable intelligence.

The information reported is based on a press release statement and the latest SEC filing by Avanos Medical, Inc.

In other recent news, Avanos Medical reported better-than-expected financial results for the fourth quarter of 2024, with earnings per share (EPS) reaching $0.43, surpassing the forecasted $0.40. The company’s revenue also exceeded expectations, coming in at $179.6 million compared to the anticipated $177.23 million. Avanos completed the sale of its Respiratory Health business, marking a significant milestone in its transformation process. The company is targeting long-term gross margins of over 60% and has set a net sales guidance of $665 million to $685 million for 2025. In leadership news, Avanos Medical appointed David Pacitti as its new CEO, effective April 14, 2025. Pacitti, previously with Siemens (ETR:SIEGn) Healthineers, is expected to lead the company into its next growth phase. The company continues to focus on strategic mergers and acquisitions, particularly in its Specialty Nutrition Systems segment. Analyst firms like Stifel and Citizens GMP have noted the company’s strategic focus on margin improvement and business evaluation.

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