Morningstar Rating

Stock Research and Analysis

by Debbie S. Wang

Bulls Say

Boston remains one of the top players when it comes to intellectual property in the medical technology arena, which bodes well for its ability to innovate enough to keep up with rivals.
With the increasing emphasis on comparative effectiveness, Boston inherited Guidant's earlier landmark MADIT II study that provides some of the longest-term data available demonstrating the efficacy and cost-effectiveness of ICDs.
Boston's more recent acquisitions have put the firm in the leadership role in several niche markets, including leadless ICDs and bronchialthermoplasty. Read more 

Bears Say

Boston's profitability continues to trail that of its rivals thanks to a broad portfolio that includes lower-margin products.
With Abbott's European launch of its bioresorbable stent, ABSORB, interventional cardiologists may prefer this new technology over existing drug-eluting stents like Boston's Promus franchise.
Boston is likely to be third or fourth to market with the key emerging technologies that will drive growth in cardiac devices over the next five years. Read more 

Management

We think Boston has suffered from poor stewardship, most notably when a previous management team displayed complete disregard for existing shareholders' interests as it pursued the pricey purchase of Guidant. Since then, there has been turnover in the   Read more 

Profile

Boston Scientific produces less-invasive medical devices that are inserted into the human body through small openings or cuts. It manufactures products for use in angioplasty,  Read more 

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