Boston Scientific Medical Device Company Intelligence Report

Date: September 22, 2011
Pages: 84
US$ 515.00
Publisher: Espicom Business Intelligence
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: BC9F1B18061EN

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Boston Scientific Medical Device Company Intelligence Report
Boston Scientific develops and manufactures medical devices that are used in a range of interventional medical specialties, including interventional cardiology, cardiac rhythm management (CRM), peripheral interventions, electrophysiology, neurovascular intervention, endoscopy, urology, gynaecology and neuromodulation.

The company’s history began in the late-1960s when its co-founder, John Abele, acquired an equity interest in Medi-tech Inc, a research and development company focused on developing alternatives to surgery. Medi-tech introduced its initial products in 1969 – a range of steerable catheters used in some of the first less-invasive procedures performed. In 1979, John Abele joined with Pete Nicholas to form Boston Scientific, which indirectly acquired Medi-tech. This acquisition began a period of new product development and organisational growth.

Boston Scientific’s growth has been fuelled in part by strategic acquisitions and alliances designed to improve its ability to take advantage of growth opportunities in the medical device industry. In April 2006, the company consummated its acquisition of the majority of the assets of Guidant Corporation. With this acquisition, it became a major provider in the CRM market, enhancing its overall competitive position and further diversifying its product portfolio. This acquisition established Boston Scientific as one of the world’s largest cardiovascular device companies and a global leader in microelectronic therapies. While Guidant’s vascular intervention and endovascular businesses were sold to Abbott, Boston Scientific also gained rights to Guidant’s Xience V drug-eluting stent (DES), which it sells as Promus, providing it with access to a new DES platform using the everolimus drug to sell alongside its Taxus pacitaxcel-eluting stents.

However, since the acquisition of Guidant, Boston Scientific has performed goodwill impairment tests mainly related to its CRM business that has resulted in the company reporting significant losses.

Since 2007, Boston Scientific has taken strategic steps to improve its cost structure and to streamline its business. It has implemented several expense and workforce reduction plans and a Plan Network Optimisation plan aimed at simplifying its plant network, reducing manufacturing costs and improving gross margins. The latest restructuring plan is expected to be substantially complete by the end of 2013.

The company has also sold various businesses that it considered to be non-strategic. These include its Auditory, Vascular Surgery, Cardiac Surgery, Venous Access and Fluid Management businesses; Santa Rosa Corporation (formerly known as TriVascular Inc), which held equipment and intellectual property related to the TriVascular Endovascular Aortic Repair (EVAR) programme; the majority of its investments in certain publicly-traded and privately-held entities; and its Neurovascular business.

While implementing these restructuring initiatives, Boston Scientific has continued to make smaller strategic acquisitions, which has helped the company add new technologies and products to its pipeline. These include: Atritech Inc, which has developed a device designed to close the left atrial appendage of the heart in patients with atrial fibrillation who are at risk of ischaemic stroke; Sadra Medical Inc, which is developing a repositionable and retrievable device for percutaneous aortic valve replacement (PAVR) to treat patients with severe aortic stenosis; S.I. Therapies and ReVascular Therapeutics Inc, which added a re-entry catheter and intraluminal chronic total occlusion (CTO) crossing device to the company’s Peripheral Interventions portfolio; Asthmatx Inc, which has developed a less-invasive, catheter-based bronchial thermoplasty procedure for the treatment of severe persistent asthma; and Intelect Medical Inc, a development-stage company developing advanced visualisation and programming for the Vercise deep brain stimulation system.

In 2010, Boston Scientific reported sales of US$7.8 billion. In the last five years, the company has reported significant net losses, mainly due to goodwill impairment charges. However, in the first six months of 2011, the company generated net earnings of US$192 million on sales of US$3.9 billion, mainly attributable to lower goodwill impairment charges and a gain on the sale of its Neurovascular business.

Boston Scientific’s principal competitors include Johnson & Johnson, Medtronic, Abbott and St Jude Medical.

In September 2011, Boston Scientific named Michael Mahoney, former head of Johnson & Johnson's Medical Devices & Diagnostics business, its next CEO. Mahoney initially assumed the role of President of Boston Scientific in October, but will not become CEO until November 2012. Boston Scientific said the transition period will "accommodate Mahoney's post-employment obligations to Johnson & Johnson, which both Boston Scientific and Johnson & Johnson have agreed is appropriate”. Hank Kucheman, currently Executive Vice President, will serve as interim CEO. Mahoney's new appointment renewed speculation that Johnson & Johnson could seek to acquire Boston Scientific. In June 2011, Johnson & Johnson announced its intention to stop producing drug-eluting stents, a market led by Boston Scientific, and is also interested in broadening its portfolio of cardiac devices to include heart pumps and heart valves, an area that Boston Scientific is focusing on.

This company report provides

  • Key contact information
  • Introduction to the company and its current activities
  • Summary of its financial performance
  • Who are the company’s major competitors?
  • Key recent events in an “at a glance” format
Financial Review
  • Current year and annual financial data, including revenue breakdowns by product area and geographic region (if available)
  • Table providing in-depth five-year financial analysis
  • Employee data, including breakdown by company division and geographic location
Strategic Focus

Investigates the company’s aims and its areas of focus


Core product areas, key brands, product approvals and launches

Research and Development
  • How much has been invested in R&D?
  • Where is the research based?
  • What alliances and agreements does the company have and with whom?
Manufacturing and Distribution
  • Identifying the company’s manufacturing locations
  • Sales and marketing facilities
  • With whom has the company reached agreements and what do they involve?
  • Key contracts awarded
Mergers, Acquisitions, Minority Investments and Divestments


Key Corporate Events


First Half 2011 Financial Results
  Cardiac Rhythm Management (CRM)
  Urology/Women’s Health
2010 Financial Results
    Interventional Cardiology
  Peripheral Interventions
  Urology/Women’s Health
Five-Year Financial Data



  ICD and CRT-D Systems
  Pacemaker Systems
  Remote Patient Monitoring System
  Interventional Cardiology
    Coronary Stent Systems
    Other Interventional Cardiology
  Peripheral Interventions
  The Cardiology & Rhythm Marketplace
  Peripheral Interventions and Electrophysiology Marketplace
  Interventional Bronchoscopy
Urology/Women’s Health


R&D Expenditure
R&D Going Forward
Research Establishments
Studies and Trials
  DAPT (Dual AntiPlatelet Therapy)
    DAPT Study Protocol
    PLATINUM Small Vessel
    PLATINUM Workhorse
    PLATINUM China
  Watchman Device
  ALTITUDE Clinical Science Programme
    Outcomes in Diabetic Patients
    Advantages for Taxus Liberte Stent in Small Vessels and Long Lesions
    BG Medicine Research Agreement
  Benign Stricture Study



Greatbatch Medical
Fukuda Denshi
Viking Systems
Philips Healthcare and Siemens Medical Solutions
Bladder Health Network
StockerYale (now Coherent)
Intelect Medical
GE Healthcare
OmniSonics Medical Technologies
Reva Medical
University of Akron
St Jude Medical
BioForm Medical
Togo Medikit
Biophan Technologies
TEI Biosciences
Angiotech Pharmaceuticals
Mentor (Coloplast)
NeoRx (now Poniard Pharmaceuticals)
CardioComm Solutions
WL Gore & Associates
Natural Pharmaceuticals
Electro Medical Systems
Terminated Agreements
Osiris Therapeutics
EP MedSystems
Bovie Medical
Aspect Medical Systems
VIA Pharmaceuticals (Corautus Genetics)
Proxy Biomedical


ReVascular Therapeutics
Intelect Medical
Sadra Medical
S.I. Therapies Assets
Prolieve Thermodilatation System
Remon Medical Technologies
EndoTex Interventional Systems
  Abbott Transaction
Willy Rusch’s Endoscopic Stent Technologies
Rubicon Medical
CryoVascular Systems
Advanced Stent Technologies
Advanced Bionics
Precision Vascular Systems
InFlow Dynamics
Smart Therapeutics
BEI Medical Systems
Enteric Medical Technologies
MicroHeart’s Cardiac Delivery Technology
Cardiac Pathways
Quanam Medical
Interventional Technologies
Rex Medical’s Rotational Thrombectomy Technology
Catheter Innovations
Embolic Protection Inc
CathData’s QMS 2 Advanced Mapping Technology
CardioGene Therapeutics
Schneider Worldwide
Target Therapeutics
EP Technologies
Heart Technology
Meadox Medicals
Scimed Systems
Vesica Medical
Cardiovascular Imaging Systems


MRI Interventions
Vitalife Life Sciences Fund


Neurovascular Business
Sale of Private Investment Portfolio and Venture Fund Assets
Technology, Patents and Assets Related to the use of Conductive Sintered Steel
Boston Scientific Santa Rosa Corporation
Fluid Management and Venous Access Businesses
Cardiac and Vascular Surgery Business
Auditory Business and Drug Pump Development Programme
Celsion Shares
Aspect Medical Systems Shares
Cardica Shares
Cardiac Assist Division


Mississippi Public Employees' Retirement System Fraud Case
EVM Systems
Johnson & Johnson/Cordis
  Jang Patent
  Palmaz and Gray Patents
  Wright/Falotico Patents
  Morris Patents
  Llanos Patent
  Fischell Patents
Dr Luigi Tellini
Body Science
OrbusNeich Medical
Guidant and Guidant-related Lawsuits
  Product Liability Lawsuits
  Governmental Proceedings
  DoJ Civil Lawsuit
  Ventak Prizm Defibrillator
Internal Revenue Service (IRS)
2001, 2002 and 2003 Tax Years
2006 and 2007 Tax Years



Recent Key Events
Boston Scientific - First Half 2011 Financial Results
Boston Scientific - First Half 2011 Sales by Geographic Area
Boston Scientific - First Half 2011 Sales by Product Segment
Boston Scientific - First Half 2011 CRM Sales
Boston Scientific - First Half 2011 Coronary Stent System Sales
Boston Scientific - Annual Financial Results, 2006-2010
Boston Scientific - Annual Net Sales by Geographic Area, 2006-2010
Boston Scientific - Annual Sales by Product Segment, 2006-2010
Boston Scientific - Annual CRM Product Sales, 2006-2010
Boston Scientific - Annual Coronary Stent System Sales, 2006-2010
Boston Scientific – Five-Year Financial Summary
Boston Scientific – Annual Employee Numbers
Boston Scientific – Summary of CRM and Electrophysiology Products
Boston Scientific – Summary of Interventional Cardiology Products
Boston Scientific – Summary of Interventional Radiology and Oncology Products
Boston Scientific – Cardiology, Rhythm and Vascular Product Pipeline
Boston Scientific – Summary of Gastro-enterology and Interventional Bronchoscopy Products
Boston Scientific – Endoscopy Product Pipeline
Endoscopy Marketplace
Boston Scientific – Summary of Urology and Women’s Health Products
Boston Scientific – Urology and Women’s Health Product Pipeline
Urology and Women’s Health Marketplace
Boston Scientific – Neuromodulation Product Pipeline
Boston Scientific - Annual R&D Expenditure, 2006-2010
Agreements Summary
Mergers and Acquisitions Summary


Boston Scientific - Annual Net Sales and Operating Loss, 2006-2010
Boston Scientific - Annual Net Sales by Geographic Area, 2008-2010
Boston Scientific - Annual Sales by Business Segment, 2006-2010
Boston Scientific – 2010 Sales by Business Segment
Boston Scientific - Annual Defibrillator and Pacemaker Product Sales
Boston Scientific – Annual Cardiovascular Sales, 2006-2010
Worldwide DES Market Shares, 2010
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