CareFusion Names ResMed Executive As Chairman, CEO

CareFusion Corp. (CFN) named ResMed Inc. (RMD) chief executive Kieran T. Gallahue as its chairman and chief executive as the medical-device company continues working on its turnaround.

CareFusion, which sells systems that dispense medication as well as drug-infusing systems and respiratory equipment, has posted weak results in recent quarters. The company last year unveiled restructuring plans that included a 5% work force reduction, shedding management layers and support functions.

Gallahue comes to CareFusion with almost 20 years experience in the health-care industry. Since 2007, he has also served on the board of cardiology product-developer Volcano Corp. He succeeds David L. Schlotterbeck, who last year announced plans to retire sometime this month.

ResMed, a company that makes equipment that treats sleep-related respiratory disorders, said Gallahue resigned effective Tuesday and won't receive any severance benefits from his departure. Company founder and chairman, Peter Farrell, will step in on an interim basis. The company said it doesn't expect a change in strategy as a result of the move.

Shares of ResMed slipped 1.6% to $31 premarket. The company has gained 22% over the past year. CareFusion shares closed at $25.73 Monday and were inactive premarket. The stock is up 5.5% over the past three months.

-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; [e-mail]