Boston Scientific (NYSE: BSX) these days. With the stock in the toilet and little momentum in the business (but a lot of debt!) I am certain management is fielding quite a few “take action!” calls from our lovely and ever-so-patient friends in Hedge Fund-Land. The first rumor is that BSX is approximately to sell its neurostim business to Stryker (NYSE: SYK). I saw this rumor in Bloomberg today, and spoken with some friends on the market.
It all seems to make a good little bit of sense to us. First, BSX has bigger seafood to fry in its stent and CRM businesses, and has not really been doing all of that great against Medtronic (NYSE: MDT) or St. Jude (NYSE: STJ) in that (neurostim) market. Like so a great many other niche businesses at BSX, that one too has experienced from neglect and under-investment.
For Stryker, this might offer another business system and usage of market that has decent root development. Beyond the neurostim business, BSX is apparently looking to jettison the neurovascular business also. BSX has a very good franchise in treatments for cerebral aneurysms like embolization coils plus they have been a significant player for several years. This is interesting timing considering that Johnson & Johnson (NYSE: JNJ) lately announced a deal for Micrus Endovascular (Nasdaq: MEND) – one of BSX’s up-and-coming rivals.
What is BSX telegraphing here? May be the company saying, in effect, that only BSX’s superior marketing capabilities and long-term customer interactions were keeping them afloat and that MEND’s products in the hands of JNJ’s salesforce is too overpowering to fight? That is probably hyperbole, but it is an interesting development nonetheless. So who might buy this carrying on business?
- You Drive TO GET A Living
- 1929: Marriage on the Rocks
- Ideal for short-term trading
- Twitter: @siwi_drinking water, #WWWeek
I would think Medtronic or St. Jude might give it a courtesy sniff, but I’d expect the likes of Cook or Bard (NYSE: BCR) to be the more reasonable candidates right now. Covidien (NYSE: COV) exists buying every other damn thing, so maybe they will too take a look.
All in all, these are interesting developments at BSX. Does this mean the business is absolutely circling the wagons and choosing to concentrate on major product categories like stents and CRM? Or is this only a process of cleaning out a few under-performing (but still marketable) businesses in which a recovery is improbable?
I am not sure yet, but I would keep a close vision on if they jettison the IVUS business too. A sales of this business to a motivated buyer (like, say, GE (NYSE: GE) or Siemens (NYSE: SI)) would be bad news for Volcano (Nasdaq: VOLC). Volcano has great technology (the best, actually) and products, however they have obviously also benefited from BSX’s unwillingness to aid and develop the business any further. A sale to a new rival, then, will be a clear threat. By the end of everything, though, I would not be considered a buyer of BSX still. But, I am type of familiar with not liking BSX, therefore i do not pretend to be unbiased.
As seniors we have often arranged new directions not only inside our own lives but affected others in theirs. Our pension strategy needs an overhaul. Plain and simple, the cents and dollars issue is very important we do live in a capitalist nation. Capital is exactly what purchases us our freedom to do what we want so when it is wanted by us. Our needs as baby boomer are different. Some of us want a quiet retirement, one without any real needs apart from to have our homes paid for and our life made simply comfortable.
That is a technique that can be implemented by firmly taking actions now to ensure that happens by simply determining what we really need after we decide to retire. Some of us want the capability to continue to develop financially and have a life that we can do more than what we have done before. As baby boomers this will need some real work and we have to employ and apply long run strategies that will exceed that which we curently have saved or invested for at the moment.
In either case on the above mentioned, even though you fall in the middle or not in range in any way, we need to strategize what our future needs will be and exactly how much will that costs us occasionally. This is a matter of change, our parents got simple strategies such as work for one company, then retire and the pension plan along with social security shall care for the rest. Well I don’t believe that plan is wonderful for more than 79.9 million of the 80 million seniors. Nope, I simply don’t believe it.