BOSTON SCIENTIFIC COMPANY

Boston Scientific Company



Boston Scientific Company

Company Overview

Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices for application in a range of interventional medical specialties including interventional cardiology, cardiac rhythm management, peripheral interventions, electrophysiology, neurovascular intervention, endoscopy, urology, gynecology and neuromodulation. The company operates in the US, Europe, the Middle East, Africa and Asia Pacific regions. Boston Scientific is headquartered in Natick, Massachusetts and employed 26,000 people as of December 31, 2009. The company recorded revenues of $8,188 million during the financial year (FY) ended December 2009, an increase of 1.7% over FY2008. The operating loss of the company was $894 million during FY2009, as compared to an operating loss of $1,505 million in FY2008. The net loss was $1,025 million in FY2009, as compared to a net loss of $2,036 million in FY2008.

SWOT Analysis

Boston Scientific is a global developer, manufacturer and marketer of medical devices that are used in a broad range of interventional medical specialties. The company's diverse product portfolio helps it cater to a large customer base as well as insulates it from concentration risks. However, patent infringement cases could affect the company's intellectual property and financial position.

+ Factors

- Factors

Comments

I Current situation

Diverse portfolio with market leading Products.

Quality control issues resulting in product recalls.

A Past performance

Product innovation providing competitive edge.

Over dependence on mature cardiovascular products exposing business to heightened competition.

B Strategic posture:

Launch of NC Quantum Apex catheter in the US and Europe to drive topline growth.

Competition from Abbott's Xience could affect Taxus' sales and market share.

Current mission

Boston Scientific's mission is to improve the quality of patient care and the productivity of health care delivery.

Current objectives

This is accomplished through the continuing refinement of existing products and procedures.

Current strategies

Our business strategy is to lead global markets for less-invasive medical devices by developing and marketing innovative products, services and therapies that address unmet patient needs, provide superior clinical outcomes and demonstrate proven economic value.

Current policies

We pursue a policy of generally obtaining patent protection in both the U.S. and abroad for patentable subject matter in our proprietary devices and attempt to review third-party patents and patent applications to the extent publicly available in order to develop an effective patent strategy.

II Corporate governance

Board of directors

Ray J. Groves has been a Director of Boston Scientific since 1999.

Top Management

He joined the Company in 2009 and brings more than 35 years of experience leading health care and consumer products companies.

III. External environment(SWOT)

Societal environment.

Restructuring initiatives could help realize full potential.

Changes in tax laws could have negative impact on financial condition.

Task environment

The company has continuously enhanced and diversified its product portfolio.

Product diversification allows Boston Scientific to cater to a large customer base as well as insulates its business growth from concentration risks.

Strengths

Diverse portfolio with market leading products

Boston Scientific has the portfolio of leading products addressing the needs of diverse markets. The company has leadership position in majority of its markets. It manufactures a range of medical devices in the areas of interventional cardiology, cardiac rhythm management, peripheral interventions, electrophysiology, neurovascular intervention, oncology, endoscopy, urology, ...