Boston Scientific
Boston Scientific Corporation, doing business as Boston Scientific, is a manufacturer of medical devices used in interventional medical specialties, including interventional radiology, interventional cardiology, peripheral interventions, neuromodulation, neurovascular intervention, electrophysiology, cardiac surgery, vascular surgery, endoscopy, oncology, urology and gynecology.
Boston Scientific is primarily known for the development of the Taxus Stent, a drug-eluting stent which is used to open clogged arteries. With the full acquisition of Cameron Health in June 2012, the company also became notable for offering a minimally invasive implantable cardioverter-defibrillator which they call the EMBLEM Subcutaneous Implantable Defibrillator.
History
Boston Scientific was formed June 29, 1979, in Watertown, Massachusetts, as a holding company for a medical products company called Medi-Tech, and to position the company for growth in interventional medicine.Post-IPO
The company went public through an initial public offering on May 19, 1992.The Taxus Stent was approved in 2003 in Europe and other countries and approved in the United States by the FDA in March 2004. It was the second drug-eluting stent approved in the United States.
In April 2004 the company announced that it had exercised an exclusive option to acquire Precision Vascular Systems, Inc., as part of a series of agreements between Boston Scientific and Precision Vascular in 2002 - for an undisclosed sum. In June Boston acquired Advanced Bionics Corporation for $740 million in cash, plus earn out payments. In December Boston completed its acquisition of Advanced Stent Technologies, Inc. for $120 million payable in Boston Scientific stock, plus the possibility of future contingent payments. AST had been developing stent and stent delivery systems specifically designed to address the anatomical needs of coronary artery disease in bifurcated vessels.
In April 2005, Boston exercised an exclusive option to acquire TriVascular, Inc. for an undisclosed sum. TriVascular was founded in 1998 to develop less-invasive medical devices and procedures for treating abdominal aortic aneurysms. In the same month the company also announced it had exercised its option to acquire CryoVascular Systems, Inc. and its proprietary angioplasty device to treat atherosclerotic disease of the legs and other peripheral arteries. In June Boston Scientific announced that its wholly owned subsidiary, Nemo I Acquisition, Inc., had successfully acquired Rubicon Medical Corporation, with Rubicon became a wholly owned subsidiary of Boston Scientific.
Guidant merger
In January 2006, the company announced an offer for Guidant of $72 per share or $25 billion, this offer was however, rejected. On April 21, the company acquired longtime competitor Guidant for $27.2 billion. Guidant was split between Boston Scientific and Abbott Laboratories.Post-merger
In December 2007, Boston Scientific announced it would sell its Fluid Management and Venous Access businesses for $425 million to Avista Capital Partners.In April 2008 the company acquired CryoCor, Inc. for $1.35 per share, $17.6 million in total. Navilyst Medical was formed in February 2008 from Boston Scientific's Fluid Management and Vascular Access business units.
In January 2009, Boston announced it would acquire Labcoat Limited, whose primary development was that of a development-stage drug-eluting stent - for an undisclosed sum.
In October 2010, the company was fined $600,000 by the US Department of Justice for paying a US Army doctor to use their devices and recommend them to others. In the same month Boston Scientific acquired Asthmatx, Inc. for $193.5 million, with payments of up to $250 million being paid on the achievement of specified revenue-based criteria through 2019.
In January 2011 Boston acquired Atritech, Inc., for $100 million plus additional potential payments of up to $275 million. Atritech developed a novel device designed to close the left atrial appendage in patients with atrial fibrillation who are at risk for ischemic stroke. In the same month, Boston Scientific acquired Intelect Medical, Inc. for $78 million and the remaining 86 percent of Sadra Medical, Inc. not already owned for $193 million plus contingent payments. At the same time, the business divested its neurovascular business to Stryker Corporation for $1.5 billion.
In June 2012, Boston Scientific officially acquired Cameron Health for a total sum of $1.3 billion, paid out incrementally as various revenue milestones were achieved. In September the company announced it would acquire BridgePoint Medical, Inc., developer of a catheter-based system to treat coronary chronic total occlusions. In October, the company acquired Rhythmia Medical, Inc., developer of mapping and navigation methods for use in cardiac catheter ablations and other electrophysiology procedures. A month later the business acquired catheter-based renal denervation system developer, Vessix Vascular, Inc..
In November 2013 Boston announced it would acquire Bard EP, the electrophysiology business of C.R. Bard, Inc. for $275 million.
In May 2014 Boston acquired hysteroscopic intrauterine tissue removal specialist, IoGyn, Inc.. In September, the business announced it would acquire the Interventional business of Bayer.
In March 2015, the company announced it would acquire Endo International Plc's American Medical Systems urology business for at least $1.6 billion, expanding the company's health and prostate treatments. In April, Boston announced its intention to acquire Xlumena, Inc.. In October Boston announced it had invested further in percutaneous mitral valve replacement system developer, MValve Technologies, gaining a right to acquire the business in the future.
In July 2016 the business acquired the manufacturer of radiofrequency ablation systems, Cosman Medical, Inc.. In September, Boston announced it had acquired EndoChoice Holdings, Inc., becoming part of the Boston Scientific Endoscopy business for $8.00 per share or $210 million in total. In November the company acquired the gynecology and urology portfolio of Distal Access, LLC, a company that designs minimally invasive medical devices. In December 2016, the business acquired a 15% stake in Neovasc, Inc. for $75 million.
In May 2017 the company acquired Symetis SA, a developer of minimally invasive transcatheter aortic valve implantation devices. In October Boston acquired Apama Medical Inc. for up to $300 million.
In April 2018 Boston Scientific announced the triple closure of its acquisitions of women's health company, nVision Medical Corporation, NxThera and Securus Medical Group, Inc. for up to $50 million. In July, Boston announced it would acquire Cryterion Medical, Inc, Veniti, Inc., in August Augmenix, Inc. and Claret Medical, Inc. and in October In late November Boston announce they would acquire UK medical device maker, BTG plc, for $4.2 billion. In late December, the company announced it would acquire Millipede, Inc for $325 million - after previously investing $90 million in the company.
In May 2019, the company announced it would acquire Vertiflex, Inc. increasing its interventional pain therapy offerings. Vertiflex principally developed treatment for lumbar spinal stenosis.
Organizational culture
The company is assessed quite positively by its own employees. In the 2019 Best Places to Work - Employee's Choice Survey, conducted by the Glassdoor website, Boston Scientific ranked 43rd out of 100 companies listed, with an average score of 4.3 out of 5 possible stars. The feedback for this survey is given by current and former employees. Boston Scientific has 43% women among its employees, 38% of management positions and 23% of corporate top management positions are held by women.Social commitment
Boston Scientific has the self-imposed standard of implementing an integrative organizational culture and actively strives to further improve this by increasing diversity at the level of management and executives. To this end, the company has set itself the following goals in 2018:- Leadership role by belonging to the top 10 companies in the integration of employees of the following groups: women, people of color, disabled persons and members of the LGBTQ community.
- Increase the proportion of people of color with supervisor or managerial functions to 20% in the USA including Puerto Rico.
- Increase the proportion of women in supervisor or managerial positions to 40% worldwide.
- Forbes added the company in 2019 to its list of Best Employers For Diversity for its efforts to foster a corporate culture that welcomes and supports all employees. Boston Scientific ranked 85th out of 500 companies.
- Bloomberg recognized Boston Scientific for its inclusion in the Gender Equality Index in 2019, which includes companies that publicly demonstrate their commitment to equality and the advancement of women in the workplace. The index lists a total of 230 companies from ten economic sectors and 36 countries and regions.
- The US magazine Working Mother voted the company into the list of the 100 Best Companies for Working Mothers twice, most recently in 2018.
- The Human Rights Campaign has elected Boston Scientific as a Best Place to Work for LGBTQ Equality in its 2019 edition of the eponymous list.
Lawsuits
Johnson & Johnson lawsuits
Beginning in 2003, Boston Scientific and Johnson & Johnson were involved in a series of litigations involving patents covering heart stent medical devices. Both parties claimed that the other had infringed upon their patents. The litigation was settled once Boston Scientific agreed to pay $716 million to Johnson & Johnson in September 2009 and an additional $1.73 billion in February 2010.It was announced in November 2014 that Johnson & Johnson would have another chance for payback after a multibillion-dollar trial was set for 20 November 2014. A New York federal court judge would hear the case without a jury to decide whether Boston Scientific should be held liable for the contract breach.
Transvaginal mesh
Boston Scientific is one of several manufacturers of a medical device called transvaginal mesh, a type of surgical mesh used to treat pelvic organ prolapse. In 2015, Boston Scientific announced it would pay $119 million to 2,970 lawsuit plaintiffs, who had been injured by the mesh.On Sunday, May 13, 2018, 60 Minutes broadcast a story suggesting that Boston Scientific used counterfeit Marlex polypropylene resin to manufacture their mesh product. Boston Scientific responded by saying the broadcast was "irresponsible and misleading," citing a 2017 Food and Drug Administration report stating that although they found variability in the polypropylene resin, "these differences do not present new safety or effectiveness concerns."
The Mayo Clinic has described the advantages and risks associated with the use of transvaginal mesh.