Solventum's (SOLV) largest shareholder Trian Fund Management said Wednesday that the company's separation from 3M (MMM) should have enable significant improvements, but is not living up to the potential.
Solventum performance has declined since the spinoff and is barely growing at low-20% operating margin despite a favorable core market backdrop, Trian said in an open letter to Solventum shareholders.
Solventum must outline a long-term plan to restore its historical growth and profitability, Trian added. Trian holds roughly 5% stake in Solventum.
Solventum can also benefit from simplifying its portfolio, focusing on core medical-surgical segment, and capitalizing on divestiture opportunities.
Solventum shares were down 1% in recent trading.
Price: 68.56, Change: -0.85, Percent Change: -1.22
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