Boston Scientific (founded in 1979) is a worldwide developer, manufacturer and marketer of medical devices with approximately 25,000 employees and revenue of $7.8 billion in 2010. For more than 30 years, Boston Scientific has advanced the practice of less-invasive medicine by providing a broad and deep portfolio of innovative products, technologies and services across a wide range of medical specialties. The company?s products help physicians and other medical professionals improve their patients? quality of life by providing alternatives to surgery.
Type | Public Company |
Company Size | 10,001+ employees |
Website | http://www.bostonscientific.com |
Industry | Medical Devices |
Founded | 1979 |
1) Taxus, Liberté, and Express coronary stents
2) Cognis cardiac resynchronization therapy defibrillator
3) Confient, Teligen, and Vitality implantable cardioverter defibrillators
4) Explorer and Inquiry diagnostic cardiology catheters
5) iLab ultrasound imaging system; Atlantis SR Pro ultrasound imaging catheter
6) Polyflex, Ultraflex and Wallflex esophageal, duodenal, and colonic stents
7) Sterling balloon dilation catheters
8) VersaPulse PowerSuite holmium urology laser systems
1) Advanced Stent Technologies Inc.
2) Boston Scientific Neuromodulation Corp.
3) Cardiac Pacemakers Inc.
4) Catheter Innovations Inc.
5) Corvita Corp.
6) EndoVascular Technologies Inc.
7) Enteric Medical Technologies Inc.
8) Guidant Corp.
9) Intermedics Inc.
10) Interventional Technologies LLC
11) Precision Vascular Systems Inc
Financials of Boston Scientific in 2010 (in $M) | |
Revenue (Fiscal Year) | 7,806 |
Revenue Growth (1 yr) | (-4.70%) |
Gross Profit | 5,207 |
EBITDA | 1,859 |
Trading Statistics (in $M) | |
Market Capitalization | 10,758.57 |
Shares Outstanding | 1,528.21 |
Ratios | |
Current Ratio | 1.75 |
P/E Ratio | 18.9 |
Debt to Equity Ratio | 43.31 |
Segment Contribution to the revenue (in $M) | ||
Segment | Growth | Sales (2010) |
Cardiovascular | (-5%) | 811 |
Interventional Cardiology | (-8%) | 635 |
Peripheral Interventions | 7% | 176 |
Coronary stent system | (-7.9%) | 409 |
Cardiac Rhythm Management | 4% | 559 |
Defibrillators | 6.9% | 417 |
Pacemakers | (-4%) | 142 |
Electrophysiology | (-3%) | 37 |
Endoscopy | (-3%) | 287 |
Urology/Women?s health | 10% | 120 |
Neuromodulation | 14% | 77 |
Boston Scientific derives maximum contribution from Cardiovascular, which recorded a 5% year-over-year decline in sales to $811 million. While sales from Interventional Cardiology declined 8% to $635 million, Peripheral Interventions increased 7% to $176 million. Global sales of coronary stent system (within Interventional Cardiology) at $409 million declined 7.9% driven by lower sales of both drug-eluting stents (DES, 6.9% to $379 million) and bare-metal stents (18.9% to $30 million). It is encouraging to note that the company maintained its leadership position in the global DES market with 36% share and 46% in the US market.
The next biggest contributor to Boston Scientific?s top line, Cardiac Rhythm Management, recorded a 4% increase in sales to $559 million. A 6.9% rise in defibrillators sales to $417 million coupled with a 4% decline in sales of pacemakers to $142 million contributed to the overall increase.
Hence, the overall revenue of Boston Scientific declined by 4.7%. (Seekingalpha.com)
The graph clearly shows the declining cardiovascular market, which constitutes the major part of Boston Scientific?s revenue. It gives a strong signal to the company to diversify its business into other business units and not be very dependent on one market.
*EMEA ? Europe, Middle East and Africa
The graph clearly shows that U.S. contributes to more than 50% of the company?s revenues. It shows an opportunity for the company to expand in other markets. They have started selling their products in Japan, which has already started contributing majorly to the revenues.
Product Portfolio of Boston Scientific | ||||
Cardiovascular Group | Cardiac Rhythm Management | Endoscopy | Urology and Women?s Health | Neuromodulation |
Drug-Eluting Stents | Remote Patient Management | Biliary Devices | Stone Management | Spinal Cord Stimulation |
Coronary Balloons | Pacemakers | Cholangioscopy | Benign Prostatic Hyperplasia | |
Coronary Atherectomy | Implantable Cardioverter Defibrillators | Biliary Stents | Pelvic Floor Reconstruction | |
Embolic Protection | Cardiac Resynchronization | Gastrointestinal Stents | Abnormal Uterine Bleeding | |
Inflation Devices | Therapy Defibrillators | Tissue Acquisition | ||
Peripheral Balloons | Cardiac Resynchronization | Gastrointestinal Bleeding | ||
Interventional Oncology | Therapy Pacemakers | Balloon Dilatation | ||
Guide Wires | Electrophysiology | Pulmonary Devices | ||
Diagnostic Catheters | Ablation Catheters | Airway Stents | ||
Guide Catheters | Intracardiac Echocardiography | Bronchial Thermoplasty | ||
Intravascular Ultrasound | Diagnostic Catheters | |||
Vascular Access/Chronic Total Occlusion | ||||
Peripheral Stents |
The Corporate headquarters of Boston Scientific is in Natick, Massachusetts. The company is present in the following locations in Europe/Middle East/Africa, America and Asia Pacific/Japan.
Europe/Middle East/Africa | America | Asia Pacific/Japan |
Austria | Argentina | New Zealand |
Belgium | Brazil | China |
Czech Republic | Canada | Hong Kong |
Denmark | Chile | India |
Finland | Colombia | Korea |
France | Costa Rica | Tokyo |
Germany | Mexico | Fukuoka |
Greece | Uruguay | Hiroshima |
Hungary | Venezuela | Kanagawa |
Ireland | West Indies | Ishikawa |
Israel | Massachusetts | Saitama |
Italy | California | Miyazaki |
Lebanon | Florida | Aichi |
Netherlands | Indiana | Osaka |
Norway | Minnesota | Hokkaido |
Poland | Utah | Miyagi |
Portugal | Washington | Kanagawa |
Spain | Malaysia | |
South Africa | Philippines | |
Sweden | Singapore | |
Switzerland | Taiwan | |
Turkey | Thailand | |
United Kingdom |
Key Executives
Top 10 companies in the medical devices industry | Sales in 2010 ($B) |
Johnson & Johnson | 23.60 |
Siemens Healthcare | 17.40 |
GE Healthcare | 16.00 |
Medtronic | 15.82 |
Baxter International | 12.60 |
Philips Healthcare | 11.20 |
Abbott Laboratories | 8.40 |
Boston Scientific | 8.00 |
Covidien | 7.81 |
Becton Dickinson | 7.16 |
Mergers & Acquisitions done by Boston Scientific | |||
<width="100%">|align = "right"| Acquired Company | <width="100%">| Date | <width="100%">| Value ($) M | <width="100%">| Reason for Acquisition |
Atritech Inc | Jan-11 | 100 | * It strengthens the BS?s product offerings in the fast-growing areas of structural heart therapy * Also a trial fibrillation, which represent two of their Priority Growth Initiatives. (Alacrastore.com) |
ReVascular Therapeutics Inc | Feb-11 | N/A | * These two novel technologies treat peripheral chronic total occlusions (CTOs). * BSX made the acquisitions because the devices cover areas with promise of high growth potential. (Yahoo Finance) |
Intelect Medical Inc | Jan -11 | 78 | * It supports BSX long-term strategy of enhancing the product portfolio and gaining market share in the Neuromodulation space * It will help them to provide the most advanced deep brain stimulation technology solutions for neurologists, neurosurgeons and their patients. * The GUIDE DBS system would be a major advance in deep brain stimulation therapy, especially when used in conjunction with BSX?s Vercise DBS System. (Massdevice.com, Medicaldesign.com) |
Sadra Medical Inc | Jan -11 | 193 | * Will Help BSX leverage on its clinical expertise and existing sales channels in the fast-growing area of structural heart therapy.( Reuters) |
Asthmatx Inc | Oct-10 | 193.5 | * Named as Top Ten Medical Innovations for 2007" by the Cleveland Clinic Foundation. * The transaction is expected to provide meaningful revenue growth in the midterm (Asthmatx.com) |
Labcoat Ltd . (Ireland) | Sep- 10 | N/A | * The Technology represents a major advance for drug-eluting stents and would help BSX maintain their strong position in this market (Bostonscientific) |
Remon Medical Technologies Inc | Aug-07 | . 73 | * Provides BSX with innovative sensor and wireless communication technology that complements their Cardiac Rhythm Management product line. * Also to maintain the leadership position (Salesandmarketingnetwork.com) |
EndoTex Interventional Systems Inc . | Jan-07 | 142 | * leadership in treating carotid artery disease (Reuters) |
Guidant Corp | Apr-06 | 27000 | * To be a global leader in cardiovascular devices (Cbsnews) |
TriVascular | Apr-05 | 110 | * To increase its share in the overall market for abdominal aortic aneurysms (AAA)device (Fdanews) |
(Similar companies are based on the same industry and similar size for the year 2011)
Boston Scientific Corporate Headquarters
One Boston Scientific Place
Natick, MA 01760-1537
Main Number: 1-508-650-8000