Cardiovascular Systems names interim CEO Scott Ward to permanent post

Cardiovascular Systems, Inc., the publicly traded maker of devices to unblock clogged arteries, has appointed a med-tech industry veteran to become its new chief executive.

CSI board chairman Scott Ward, 56, was unveiled Tuesday as the new CEO of the company. Ward has been a general partner at Bloomington-based private equity firm SightLine Partners since 2013, and before that he held several senior leadership positions at Medtronic. He's been on CSI's board for three years, including nearly two as chairman.

Ward had been working as interim president and CEO of New Brighton-based Cardiovascular Systems since November, when previous President and CEO David Martin went on medical leave. Though Martin had expected to return as CEO this year, he died in May at age 51. He had been CEO for nine years.

Under Martin, the company evolved from a start-up into a publicly traded firm with $182 million in revenue last year, a 33 percent increase from the prior year. Most of those sales were for orbital atherectomy devices, which are specially designed machines used by doctors to drill out hardened blockages in arteries in the leg and around the heart through minimally invasive procedures.

The company has sold more than 260,000 of the devices, but has yet to post a full-year net profit. The most recent annual report, from last year, said the operating losses are expected to continue given the significant costs of marketing, research and development for new and existing devices.

In the news release Tuesday announcing his appointment as full-time CEO, Ward praised company performance but said there was room for improvement, including reaching profitability and the company's "full potential."

"I am pleased with the progress CSI has made to improve the quality of care for patients with coronary and peripheral artery disease. However, as the leader in atherectomy, we have much more to accomplish," Ward said in the announcement.

After his appointment as CEO of the medical device company, Ward will continue to be a general partner for the SightLine Opportunity Management Fund II, LLC, the CSI securities filing said.

Meanwhile, CSI board member Edward Brown has been appointed lead independent director of the company.

Ward's appointment at CSI comes just over a month after he signed a five-year corporate integrity agreement on behalf of the company to resolve allegations that CSI paid doctors in ways that violated the federal Anti-Kickback law to promote its products. The agreement, which accompanied a $8 million settlement without any admission of wrongdoing, said the company will run a compliance program that includes strict oversight of sales staff in the field.