Filed under: Earnings reports, Forecasts, Deals, Boston Scientific (BSX)
Boston Scientific (NYSE:BSX) is in a lot of trouble. It took on too much debt when it purchased medical device marker Guidant, and its huge stent business has been hurt by studies showing that the product can cause blood clots.
The firm’s stock was $45 in mid-2004. It now trades at $12. The FDA is tightening coated-stent requirements. Boston Scientific does not seem to have a bright future.
Yesterday, the company sold off two of its units for $425 million. The New York Times says that the company “had concurred to sell its fluid management and venous access businesses” to a private equity firm, Avista Capital.
But, that’ll hardly be enough. The company has $7.9 billion in debt, and its operating income in the last quarter was less than $300 million with special items backed out.
Watch for Boston Scientific to sell several of its other large businesses, even most of Guidant. It probably needs to raise another $2 billion to $3 billion, and that means that company is going to get much smaller.
Douglas A. McIntyre is an editor at 247wallst.com.
Entries (RSS)