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Health and Healthcare

National Employee Morale Day At Boston Scientific (BSX)

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By Douglas A. McIntyre Updated Published
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Boston Scientific (NYSE:BSX), the worst run of the large medical device and pharma firms based in the US, announced an operating loss for the fourth quarter of 2009 of $1.23 billion. The company’s guidance was poor which pushed shares down 7% in active trading to $7.61. The bad news was on top of an announcement last week that Boston Scientific will pay Johnson & Johnson (NYSE:JNJ) $1.7 billion to settle patent disputes. The New York Times wrote “The figure appears to be the largest sum ever paid to resolve patent litigation over a medical device.”

Boston Scientific also announced that it will cut 8% to 10% of its staff. The firm said the moves will save between $200 million and $250 million over the 2010 to 2011 period. It is the latest of a number of job cuts since the company bought Guidant in 2006.

It is difficult to see how CEO Ray Elliott will keep his job in the process. Elliott has only been with the company since last year, but the stock is down 40% during the last eight quarters. Elliott’s turnaround program has been a failure.

A great deal of the blame also goes to Pete M. Nicholas, the company’s co-founder,  who has been Chairman of the Board since 1995. Boston Scientific shares traded for $12 in 1995, 40% more than the share price is now.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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