10-KPeriod: FY2003

BOSTON SCIENTIFIC CORP Annual Report, Year Ended Dec 31, 2003

Filed March 15, 2004For Securities:BSX

Summary

Boston Scientific Corporation's 2003 10-K report highlights a company firmly established in the medical device market, focused on less-invasive medicine. A significant strategic emphasis is placed on the burgeoning drug-eluting stent (DES) market, particularly with the upcoming U.S. launch of the TAXUS™ paclitaxel-eluting coronary stent system, expected to drive substantial revenue growth. The company leverages a broad product portfolio across interventional cardiology and endosurgery, supported by a robust business strategy centered on innovation, clinical excellence, product diversity, operational efficiency, and focused marketing. Despite a competitive landscape and ongoing patent litigation, Boston Scientific is positioning itself for continued leadership and expansion, particularly in high-growth areas like cardiovascular interventions.

Key Highlights

  • 1Strong market position in interventional medicine, with a broad portfolio of medical devices.
  • 2Significant strategic focus on the drug-eluting stent (DES) market, with the TAXUS™ stent poised for U.S. launch, anticipating substantial revenue growth.
  • 3Cardiovascular products accounted for approximately 72% of net sales in 2003, indicating a strong reliance on this segment.
  • 4The company is actively engaged in research and development, investing approximately $450 million in 2003, representing about 13% of net sales.
  • 5Boston Scientific is pursuing growth through strategic acquisitions and alliances, investing over $350 million in approximately 25 initiatives in 2003.
  • 6The company operates globally, with international sales representing approximately 45% of net sales in 2003.
  • 7Significant ongoing patent litigation with key competitors, including Johnson & Johnson and Guidant Corporation, presents potential risks and uncertainties.

Frequently Asked Questions

The company identifies the drug-eluting stent (DES) market as a significant growth opportunity. The upcoming U.S. launch of the TAXUS™ paclitaxel-eluting coronary stent system is expected to be a major revenue driver.

Boston Scientific employs a strategy that combines internally developed products and technologies with those acquired through strategic acquisitions and alliances. They invest heavily in R&D, focusing on cross-functional teams and clinical validation to bring innovative products to market.

The company faces significant competition from established medical device companies such as Abbott Laboratories, Johnson & Johnson, and Medtronic. Key competitive risks include technological advancements by rivals, particularly in the drug-eluting stent market, pricing pressures due to managed care and healthcare cost containment, and ongoing patent litigation.

Boston Scientific has a substantial international presence, with approximately 45% of its 2003 net sales derived from international operations across Europe, Japan, and other regions. They are expanding their direct sales force in key international markets and also utilize a network of distributors and dealers. The company is also exposed to risks associated with foreign currency fluctuations and varying international regulatory environments.