Boston, MA, 03/19/2014 – After years of falling into oblivion, Boston Scientific Corporation (NYSE:BSX)‘s sales starts to revive. To the surprise of many investors and market observors, the company’s revenues are wakening again, and its share price has more than doubled.
This new sign of life gives the credit to Mike Mahoney, a new chief executive, who switches the sailing of Boston Scientific into faster-growing businesses and markets. They had finally turned the corner, an analyst for the Leerink Swann said who is referring to the surprising and welcoming 2% growth Boston Scientific recorded last year. It happened faster than all the prediction, and raised many an eyebrow.
Outrun the gloomy past
Within the succession of moves, in last June, Boston Scientific moved its corporate headquarters from an office park off Route 9 to a state-of-the-art building in Marlborough. After settling, the company back in a buying mood after years of digesting the purchasing of Guidant. Its recent business engagement includes Rhythmia Medical Inc. purchasing, a privately owned Burlington company that makes mapping software for electrophysiology. The products include catheter ablations, which remove erroneous pathways from the hearts of patients who have the tendency to have fibrillation or atrial flutter. Late last year, Boston Scientific Corporation (NYSE:BSX) relocated about 40 of Rhythmia’s R&D and business employees to its Cambridge center, for its vintage of recruiting young and ambitious software engineer.
Boston Scientific Corporation (NYSE:BSX) also budgeted about $850 million on research and development in 2013, 12% of its annual sales. It is advancing with a line of new devices and technology that makes Boston Scientific outstanding from its competitors, such as Johnson & Johnson (NYSE:JNJ) and Medtronic, Inc. (NYSE:MDT), Covidienplc (NYSE:COV) and St. Jude Medical, Inc. (NYSE:STJ)
Turning the corner
All that endeavor was not without reward. Last fall, a subcutaneous heart defibrillator approved in 2012 to facilitate implantation by leaving heart and blood vessels intact won a prestigious Prix Galien Award for the best medical technology product.
That is followed by the welcoming decision from the Food and Drug Administration this spring on the company’s Watchman device, which is made to prevent blood clots and strokes in patients with heart disease. Boston Scientific researchers are also laboring on the Lotus Valve System, an aortic valve substitute with catheter delivery technology.
At the same time, Boston Scientific Corporation (NYSE:BSX) has been setting its footstep into fast growing economies such as China, India, Russia, and Brazil. Sales in those markets increased 27% last year, boosting total international sales to 47%, and Mahoney is predicting a patient and steady growth for the company’s overall operations.