10-KPeriod: FY2004

BOSTON SCIENTIFIC CORP Annual Report, Year Ended Dec 31, 2004

Filed March 16, 2005For Securities:BSX

Summary

Boston Scientific Corporation's 2004 10-K report highlights a year of significant growth, driven primarily by the strong performance of its TAXUS® Express 2™ paclitaxel-eluting coronary stent system. Net sales surged by 62% to $5.62 billion, with the TAXUS stent system alone accounting for 38% of total net sales, underscoring its critical role in the company's revenue. The company is strategically positioned to capitalize on the expanding drug-eluting stent market, which it anticipates will constitute the majority of the coronary stent market in the coming years. Boston Scientific is also actively investing in its research and development pipeline, pursuing next-generation technologies and expanding into new therapeutic areas such as neuromodulation through its acquisition of Advanced Bionics Corporation. While the company faces ongoing patent litigation and competitive pressures, its focus on innovation, product diversity, and operational excellence aims to sustain its market leadership.

Key Highlights

  • 1Significant revenue growth of 62% in 2004, reaching $5.62 billion, largely driven by the TAXUS Express 2™ drug-eluting coronary stent system.
  • 2The TAXUS stent system is a key revenue driver, accounting for 38% of total net sales in 2004.
  • 3Expansion into the neuromodulation market through the acquisition of Advanced Bionics Corporation.
  • 4Increased investment in R&D, particularly in next-generation stent platforms and new technologies across various therapeutic areas.
  • 5Strategic focus on innovation, clinical excellence, product diversity, and operational efficiency as core business strategies.
  • 6The company is facing multiple patent litigations with competitors, particularly in the coronary stent market.
  • 7International sales accounted for 37% of net sales, with Europe and Inter-Continental markets showing strong growth.

Frequently Asked Questions

The primary driver of Boston Scientific's financial performance in 2004 was the strong sales of its TAXUS® Express 2™ paclitaxel-eluting coronary stent system. This product launched in the U.S. in March 2004 and significantly contributed to the company's 62% revenue growth, accounting for 38% of total net sales for the year.

Boston Scientific is positioning itself for future growth by investing heavily in next-generation drug-eluting stent platforms, such as the TAXUS® Liberté™ system, and by expanding its market leadership through ongoing clinical trials and product development. The company anticipates continued conversion of the coronary stent market to drug-eluting technologies and is focused on maintaining its competitive edge through innovation and market penetration.

The acquisition of Advanced Bionics Corporation in June 2004 marked Boston Scientific's entry into the neuromodulation market. This strategic move expanded the company's technology portfolio into implantable microelectronic devices used to treat neurological disorders, contributing approximately 1% to its net sales in 2004 and representing a key growth initiative.

Key risks and challenges include intense competition in the medical device market, particularly in coronary stents, with potential market share volatility. The company is also exposed to significant patent litigation with major competitors. Other risks include the timing of regulatory approvals, managing inventory levels for key products like the TAXUS stent, potential impacts from foreign currency fluctuations, and the successful integration of acquired companies and technologies.