Boston Scientific Corp. (BSX)

Beginning its life by acquiring equity interest in a research and development firm relating to surgical alternatives, the company started by John Abele and Pete Nicholas has come a long way with revenues growing to the tune of $6.3 billion during a short time span of forty odd years. The company, which was in its prime during 2004, came down recently because of increasing competitive pressure and recall related problems for some of its products.

The company operates in three operating segments in terms of its product portfolio, they being Cardiovascular, which contributed 79% of total revenue, Endosurgury that chipped in with 18% and Neuromodulation with rest 3% during the nine-month period ended September 2006. The company derives most of its business from the U.S. and Europe with 93% of revenue share, which might be a cause for concern as the market for the company’s products have already saturated in these markets. Going further these markets offer no growth scope.

The company recently acquired Guidant through which it plans to enter the $9 billion Implantable Cardioverter Defibrillator (ICD). This move did not click well as Guidant was going through a rough time and was not in a good position to take advantage of the ICD market. Further the price Boston Scientific paid was little bit more comparing Guidant’s valuation.

Traditionally, the Drug Eluting Stent product line used to be the major revenue driver for the company bringing in as much as 51% in 2005. This market is also saturated and is slated to decrease to 24% by 2010. Endorsing the given, the company seems to be not in a position to regain its lost vigor.