Boston Scientific - Company Profile

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Boston Scientific

Company Overview

Key Facts

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 companys 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
Industry Medical Devices
Founded 1979
Primary business divisions
  1. Cardiology, Rhythm and Vascular
  2. Endoscopy
  3. Urology and Womens Health
  4. Neuromodulation
Key products

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


Significant subsidiaries

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


Key Financials

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
Current Ratio 1.75
P/E Ratio 18.9
Debt to Equity Ratio 43.31
Segment contribution
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/Womens 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 Scientifics 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%. (

Revenue Distribution of Boston Scientific

By Product Category

Revenue - productwise - Boston scientific.jpg

The graph clearly shows the declining cardiovascular market, which constitutes the major part of Boston Scientifics 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.

By Geography

Revenue - geogwise - Boston scientific.jpg

*EMEA – Europe, Middle East and Africa

The graph clearly shows that U.S. contributes to more than 50% of the companys 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.

Business Overview

Product Portfolio

Product Portfolio of Boston Scientific
Cardiovascular Group Cardiac Rhythm Management Endoscopy Urology and Womens 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

Geographical Presence

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

Organization Structure

Organization Structure of Boston Scientific.jpg (

Key Executives

  • Chairman: Peter M. (Pete) Nicholas
  • EVP and COO: Samuel R. (Sam) Leno
  • EVP and CFO: Jeffrey D. (Jeff) Capello

Market Overview

Market Share

Market Share - Medical Devices (2010).jpg

Top 10 companies in the medical devices industry

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

SWOT Analysis of Boston Scientific

SWOT - Boston Scientific.jpg

Transactional Activities

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 BSs product offerings in the fast-growing areas of structural heart therapy
* Also a trial fibrillation, which represent two of their Priority Growth Initiatives.
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 BSXs Vercise DBS System. (,
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 (
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 (
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)


Companys focus on R&D

Employees split-2.jpg US Patents issued (Boston Scientific).jpg R&D investment - Boston.jpg

(Similar companies are based on the same industry and similar size for the year 2011)

  • The first chart shows the number of employees in the R&D department in Boston Scientific is 9% higher than the industry standards (in 2011). The other chart shows that over the span of 8 years (2002-2009), the investment by Boston Scientific in R&D has increased by 200%. Also, by the end of 2009, 7240 US patents have been granted to Boston Scientific and 10,009 patents are pending. It shows that Boston Scientific is clearly focused on investing in new technology through R&D.
  • In addition to the Companys internal investments, Boston Scientific is committed to investing in external, or acquired, R&D through acquisitions and investments in new businesses.
  • Boston Scientific in future is committed to developing less-invasive products and procedures, and through the acquisition of new technologies, to better enable physicians to treat their patients.
  • The sales force of Boston Scientific is 3% lower than the industry standards. This shows that the company has an established customer base that are loyal to the company and Boston Scientific does not have to push is products in the market.

Key Insights

  • Boston Scientific continues to focus on strategic initiatives to drive growth and profitability. Till now USA has been the major geographical market for this company but Japan is emerging post 2008
  • Recent acquisitions made by the company along with promising new technologies are expected to boost the company's pipeline
  • Boston Scientifics' core businesses are witnessing significant pricing pressure and market decline. Due to which the revenues have gone down by 4.70% for the fiscal year 2010.Moreover, the economic uncertainty is impacting its procedure volume.
  • The dependence on Cardiovascular segment is very high and cannot be ignored. As its witnessing several challenges including pricing pressure, intense competition and slower market growth leading to a decline ranging between 3-8% annually
  • There are a few segments like urology/ women's health, neurovascular & Neuromodulation which have shown higher growth percentage that reaches up to 14% but the contribution of these segments is very low despite higher growth rate. Though this higher growth rate can be a signal of growth potential for future concentration of efforts
  • Company needs to realign their business portfolio to improve leverage and accelerate profitable revenue growth. The Company's diversification in Neuromodulation has been considered as a good decision by industry professionals
  • Co. Faces certain industry risks such as failure of approval from FDA, approved devices being pulled from market due to safety reasons along with eroding market share and expiring patents. The recent example of pull back is the iCross Coronary Imaging Catheters
  • It's been noted that their long standing approach to growth is by strategic acquisitions of , investments in or alliances with other businesses or companies but the co. may not always be successful in generating growth this way
  • BSX needs to control costs, grow foreign market revenue and has to continue to get timely regulatory approvals. Expansion of global sales and marketing focus is important along with Increasing its presence in markets such as China, India and Brazil and expanding the number of product registrations outside the U.S.
  • With respect to these declining figures new strategies need to be worked on, to either increase the contribution from this segment or diversify in to other segments


Boston Scientific Corporate Headquarters

One Boston Scientific Place

Natick, MA 01760-1537

Main Number: 1-508-650-8000