MedTech focus: The rise of the strategy & corporate development function

MedTech companies—from emerging innovators to global device manufacturers—have increasingly introduced or expanded Chief Strategy Officer (CSO) and corporate development leadership roles in recent years, and many have accelerated their adoption of this function in the last 18 months.

These appointments reflect a structural shift: MedTech companies have increased their activities in portfolio reshaping, capital redeployment, and data-enabled offerings, increasing the need for top-level strategy and corporate development leaders to support these critical engines of growth.¹ This follows a pattern across healthcare and life sciences in which the CSO role has expanded from traditional strategic planning to include digital transformation, innovation initiatives, venture partnerships, corporate development, and M&A

To effectively meet this need, MedTech boards and CEOs must clarify the remit of the CSO or corporate development lead they require, select the right profile for their context, and deliberately build a strategy and corporate development engine around that leader.

Why strategy, why now

Several macro forces are pushing MedTech companies to strengthen their strategy and corporate development capabilities.

First, the MedTech sector is experiencing a renewed wave of consolidation and strategic repositioning. MedTech M&A activity rose from 128 deals in 2023 to 305 in 2024, and deal value during 2024 exceeded $63 million. 2025 kept up the momentum, with 65 deals valued at $21.7 billion in the third quarter, and 27 deals totaling $43.4 billion in the fourth quarter.

Second, companies are increasingly pursuing technology-focused acquisitions, particularly in AI-enabled software and digital health capabilities. Examples include:

• Medtronic’s acquisition of CathWorks, a digital health company, in 2026 to expand its coronary diagnostic capabilities
• GE Healthcare’s agreement to acquire AI imaging company Icometrix in 2025
• Stryker’s acquisition of Care.ai in 2024 to build out its smart hospital room technology

These examples illustrate how AI is pushing MedTech companies to pursue new partnerships, tech investments, and platform expansion, all of which are contingent on a clear strategic corporate vision.

Finally, public MedTech companies have faced increasing scrutiny from activist investors pushing for portfolio divestitures, operational restructuring, and/or spinouts of underperforming divisions. Examples in recent years include:

• Elliott Management pushing for a portfolio review of potential divestitures for Medtronic in 2025
• Irenic Capital nudging Integer Holdings to pursue a sale or strategic review in 2025

These examples highlight that if MedTech boards don't proactively define their strategy, they face an increasing risk that investors will define it for them.

In addition to these trends, there is a broader reality that MedTech boards and CEOs are recognizing: As their companies scale, value creation increasingly depends on translating corporate strategy into business-unit execution.

The strategy and corporate development function, when executed effectively, becomes the needed connective tissue across an organization by:

• Ensuring strategic priorities are consistently applied across business units
• Coordinating capital allocation and portfolio decisions
• Accelerating execution of critical strategic moves

All this points toward a more coordinated, focused, high-level corporate development or strategic function—one for which MedTech companies are increasingly sourcing singular leaders.

Three archetypes of external CSO hires

Because these roles are relatively new in the healthcare sector, some MedTech companies may find their internal successor pool for these positions is limited. MedTech boards may also be eager for leaders who are already tested strategists or corporate developers and be reluctant to wait for internal leaders to round out their skill sets. For these reasons, MedTech companies may look outside their organization when hiring a CSO or corporate development leader.

The first step to this external search, as always, is to precisely define their needs. There are three broad types of roles, each with a different balance of strategic and dealmaking responsibilities.

The Dealmaker: Execution-oriented development executive

These executives bring a background and skill set that enables them to optimize deal portfolios, including acquisitions, divestitures, and partnerships or licensing deals.

People with this profile typically come from investment banking, private equity, or a corporate development role at a scaled healthcare company. The CEO and board at a MedTech company most often pursue these leaders when they are:

• Looking for new spaces to expand
• Prioritizing corporate development
• Facing high-level operating decisions about platforms, software, or enabling technologies

These people may lack broader strategic vision and integration experience.

The Architect: Consulting-led strategy executive

These leaders bring a background in enterprise strategy and transformation design. They come from a top-tier consulting firm, often with a healthcare or MedTech focus. A MedTech CEO and board may gravitate toward executives with this profile if they want:

• A tried-and-tested approach to enterprise strategy
• Support navigating complex transformations and new directions
• A shepherd of long-term vision and prioritization

However, consulting-led CSOs may have more experience strategizing than operationalizing their strategy.

The Operator: Corporate finance and operating model executive

These candidates come from large, complex industrial or healthcare organizations where leaders are trained in capital discipline, operating cadence, and enterprise rigor. The CEO and board may prefer these leaders if they:

• Have scaled quickly through acquisitions
• Operate across multiple business units or other complexities
• Need tighter linkage between strategy, finance, and execution

Candidates of this type may be less deal-centric than the execution-oriented development executive and less conceptual than leaders with a consulting background. 

From role to engine: Building out a complementary strategy & corporate development function

These three archetypes can help boards clarify what they need and where to look. But hiring a CSO or corporate development leader is only the first step. The real differentiator in their success is how companies build the function around that leader, to balance their strengths with support in the areas they lack. Leading MedTech organizations increasingly create multi-capability teams that combine complementary skill sets across all three areas of expertise to round out their leader’s profile. For deal-led CSOs, a well-balanced team may prioritize strong strategy and integration talent. A consulting-led strategist can be best paired with a team experienced in corporate development and operating-model activation. An operations-led executive will be best balanced by a team with deep market, innovation, and deal-sourcing expertise.

Conclusion

The evolution of the CSO and corporate development roles reflects a deeper shift in how MedTech companies compete. Portfolio transformation, capital deployment, and technology convergence are central to an organization’s success today.

MedTech companies that invest now in building this function—rather than waiting to react to external pressure—are better positioned to unlock significant growth, profitability, and shareholder value.

About the authors

Alan Milinazzo (amilinazzo@heidrick.com) is a partner in the global Healthcare & Life Sciences Practice; he is based in the Boston office.

Stacy Hostetler (shostetler@heidrick.com) is a partner in the global Healthcare & Life Sciences Practice; she is based in the San Francisco office.

Shrishti Seth (sseth@heidrick.com) is an engagement manager in the global Healthcare & Life Sciences Practice; she is based in the Boston office.

Reference

¹ Gustavo Alba and Phyllis Schneble, “Defining the role of chief strategy officers in US healthcare,” Heidrick & Struggles, heidrick.com.