Boston Scientific and the Road to Ruin
Add to all this the impending healthcare reform, which emphasizes cost cutting across the healthcare sector, and the medical device industry may be witnessing the end of an era. For Boston Scientific, it is a perilous time indeed.
None of which is to say that the company will implode any time soon. It has mended its relationship with the FDA and, in recent months, gained approval for two new stents. The company reported a small profit last quarter of $20 million, on revenue of $1.9 billion.
But the stock price at press time remained in the single digits. And famed hedge fund Paulson & Company, once Boston Scientific’s largest investor, has dramatically reduced its stake in the firm since 2010, shedding about 85 million total shares — while correspondingly upping its position in competitor Medtronic.
There are competing theories for why, exactly, Elliott left. But it just may be that, as one analyst puts it, “Boston Scientific is too fucked up to fix.”