Medical device maker Boston Scientific (BSX) has over 11 billion dollars in market cap. The company has always been more volatile and more controversial than average, but the chatter, rumors, and speculation on this company seem to be near-constant. The company seems to be at a key turning point, though, and the decisions the company makes today will likely determine whether Boston Scientific can once again be a major player in medical technology.
Aggressive Moves Brought Trouble Home To Roost
It is hard to believe that Boston Scientific was once a $40 stock, but it did in fact hit its all-time high ($45.81) in April of 2004. While the company rode a wave of acquisitions (SciMed, Target, Meadox, Schneider) and aggressive product introductions to the top, that same aggression sowed the seeds for major problems.
Not only did the company face several product recalls and some wrath from the FDA, it stretched itself much too far in buying Guidant. The company wrecked its balance sheet with debt and inherited a host of problems with the Guidant acquisition -- problems that have included FDA warnings (including a rather rare corporate warning letter), product holds, and generally disappointing results.
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