Business Analysis of Boston Scientific

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Boston Scientific

BOSTON SCIENTIFIC

Business Overview

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: Cardiovascular, Rhythm Management, and MedSurg. The company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; other coronary therapy products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as certain peripheral vessels; and structural heart therapy systems. It also provides stents, balloon catheters, wires, peripheral embolization devices, and vena cava filters used to treat peripheral arterial disease; and biliary stents, drainage catheters, and micro-puncture sets to treat, diagnose, and ease benign and malignant tumors. In addition, the company offers cardiac rhythm management devices, such as implantable cardioverter defibrillator systems to detect and treat abnormally fast heart rhythms; implantable cardiac resynchronization therapy pacemaker systems used to treat heart failure; and medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising steerable radio frequency ablation catheters, intracardiac ultrasound catheters, diagnostic catheters, delivery sheaths, and other accessories. Further, it provides products to diagnose and treat diseases of the pulmonary and gastrointestinal conditions; devices to diagnose, treat, and ease pulmonary disease systems within the airway and lungs; products to treat urinary stone disease and benign prostatic hyperplasia; mid-urethral sling products, sling and graft materials, pelvic floor reconstruction kits, and suturing devices; and spinal cord stimulator systems for the management of chronic pain. The company was founded in 1979 and is headquartered in Marlborough, Massachusetts.

Boston Scientific

Boston Scientific


R&P Rank: 333
Sector: Life Sciences
Industry:Medical Devices
H.Q Location:Massachusetts
Website: www.bostonscientific.com
Company Address:
300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752-1234
Ph:508-683-4000

Business Analysis of Boston Scientific

The Life Sciences Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Boston Scientific compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Boston Scientific to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Boston Scientific with an interactive chart.

  1. Revenue Growth: Boston Scientific reported a revenue growth of 12.2% year-on-year during 2016. Medical Devices Industry grew at 20.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Boston Scientific spent 28.9% of its total revenues on COGS. Medical Devices industry average (COGS share of revenue) in the same period was 41.0%
  3. R&D share of Revenues: As a percentage of revenue, Boston Scientific spent 11.0% of its total revenues on R&D. Medical Devices industry average R&D spending in the same period was 7.2%
  4. SG&A share of Revenues: As a percentage of revenue, Boston Scientific spent 37.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Medical Devices industry average SG&A spending in the same period was 33.2%
  5. Inventory share of Revenues: As a percentage of revenue, Boston Scientific spent 11.4% of its total revenues on Inventories. Medical Devices industry average Inventory spending in the same period was 14.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Boston Scientific invested 5.3% of its total revenues on Accounts Payable (A/P) Medical Devices industry average Accounts Payable investment in the same period was 9.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Boston Scientific invested 17.6% of its total revenues on Accounts Receivable (A/R). Medical Devices industry average Accounts Receivable investment in the same period was 17.3%
  8. PP&E share of Revenues: As a percentage of revenue, Boston Scientific invested 19.4% of its total revenues on Property, Plants, and Equipments (PP&E). Medical Devices industry average PPE investment in the same period was 22.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Boston Scientific invested 149.8% of its total revenues on Intangibles. Medical Devices industry average Intangibles investment in the same period was 124.7%
  10. Net Margins: Boston Scientific Net Margins in the year 2016 were 4.1%. Medical Devices industry average Net Margins in the same period were 11.7%

Sector and Industry Association of Boston Scientific

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Boston Scientific is associated with Healthcare Sector Group, Life Sciences Sector, and Medical Devices Industry.

Life Sciences sector is comprised of the following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments. The definitions for each of the industries is as follows:

  • Pharmaceuticals industry includes companies that discover, develop, manufacture, and market medicines licensed for use as medications. In general these companies offer pharmaceutical products that can be described as prescription or over-the-counter medicines. Many Pharmaceutical companies also offer a diverse portfolio of animal health products, services and solutions. Many diversified pharmaceutical companies operate in more than two operating segments like consumer health products, medical devices and pharmaceutical.
  • Medical Devices industry includes manufacturers and distributors of medical equipments and medical supplies. Medical equipments include large scale capital equipmets such as X-Ray machines and MRI scanners and other nondisposable medical devices like stents and pacemakers. Medical supplies include makers of contact lenses, eyeglass lenses, bandages and other disposable products.
  • Biotechnology industry includes Biotechnology product companies, subscription companies, and service companies. Biotechnology product companies offer pharmaceutical drug products that are manufactured in, extracted from, or semi synthesized from biological sources. Subscription-based companies develop genome databases, which can be used to develop medicinal drugs. Service companies offer solutions based on a common technology or generic tool of other large pharmaceutical or biopharmaceutical companies.
  • Diagnostics & Scientific Instruments industry includes companies that provide testing products, diagnostic reagents, instruments and diagnostic services to aid in the detection and treatment of a wide range of diseases. It also includes molecular diagnostic and genetic testing companies that develop, manufacture, market and provide diagnostic tests, diagnostic systems and related products and services. Also included are companies that manufacture and market analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics.

Industry Ranking of Boston Scientific

With $8.4 billion revenues, Boston Scientific ranked number 5 of all the companies in the US Medical Devices industry. There were a total of 81 public companies in the US Medical Devices industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Medical Devices industry by revenues during 2016 were:

  1. Medtronic ($28.8 billion)
  2. Becton Dickinson ($12.5 billion)
  3. Stryker ($11.3 billion)
  4. Baxter International ($10.2 billion)
  5. Boston Scientific ($8.4 billion)
  6. Zimmer Biomet ($7.7 billion)
  7. Dentsply Sirona ($3.7 billion)
  8. C. R. Brad ($3.7 billion)
  9. Varian Medical Systems ($3.2 billion)
  10. Edwards Lifesciences ($3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Boston Scientificand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of boston-scientific

Becton Dickinson (BDX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Becton Dickinson & Co with $12 billion revenues in the year 2016 was the number 2 Medical Devices company. Read this report to know the top competitors of Becton Dickinson and identify growth and cost optimization opportunities of Becton Dickinson

Stryker (SYK) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Stryker Corp with $11 billion revenues in the year 2016 was the number 3 Medical Devices company. Read this report to know the top competitors of Stryker and identify growth and cost optimization opportunities of Stryker

Baxter International (BAX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Baxter International Inc with $10 billion revenues in the year 2016 was the number 4 Medical Devices company. Read this report to know the top competitors of Baxter International and identify growth and cost optimization opportunities of Baxter International

Zimmer Biomet (ZBH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Zimmer Biomet Holdings, Inc. with $8 billion revenues in the year 2016 was the number 6 Medical Devices company. Read this report to know the top competitors of Zimmer Biomet and identify growth and cost optimization opportunities of Zimmer Biomet

Dentsply Sirona (XRAY) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dentsply Sirona Inc. with $4 billion revenues in the year 2016 was the number 7 Medical Devices company. Read this report to know the top competitors of Dentsply Sirona and identify growth and cost optimization opportunities of Dentsply Sirona

C. R. Brad (BCR) Business Analysis – Analyze Historical Performance, Strategic...

Bard C R Inc with $4 billion revenues in the year 2016 was the number 8 Medical Devices company. Read this report to know the top competitors of C. R. Brad and identify growth and cost optimization opportunities of C. R. Brad

Revenues Analysis

Boston Scientific (BSX) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Boston Scientific Corp (BSX) from 2012 to 2016. Boston Scientific generated a total of $8.4 billion revenues during 2016. Boston Scientific reported a revenue growth of 12.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Boston Scientific (BSX) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Boston Scientific Corp (BSX) from 2002 to 2016. Boston Scientific generated a total of $8.4 billion revenues during 2016. Boston Scientific reported a revenue growth of 12.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Boston Scientific (BSX) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Boston Scientific Corp (BSX) revenue growth with Medical Devices industry growth during the last five years from 2012 to 2016. Boston Scientific reported a revenue growth of 12.2% year-over-year during 2016. The Medical Devices industry growth was 20.5% year-over-year during 2016. Boston Scientific growth was slower than the industry during 2016.

Profit Analysis