Boston Scientific Corp. (NYSE:BSX) is working to pare between $650 million and $750 million worth of costs from its budget in a quest for double-digit earnings growth, according to interim CEO Hank Kucheman.
The cuts take into account an estimated $150 million hit from the medical device tax,which is slated to go into effect next year, Hank Kucheman said at the J.P. Morgan health care conference today.
In addition, the Natick, Mass.-based medical device goliath bought back 80 million shares of its own stock during the second half of 2011, amounting to a roughly 5% stake, according to Hank Kucheman and CFO Jeff Capello.
Hank Kucheman said the company also expects to launch 24 new products this year, including its next-generation drug-eluting stent* , the Promus Element. That device won FDA clearance last year, about 6 months ahead of schedule.
“We met and exceeded our expectations with that platform, ” Hank Kucheman said.
Boston Scientific also hopes to boost its single-digit share of the DES markets in China and India, he said.
“In the near term, we think this is a major catalyst for revenue growth, ” Hank Kucheman said.
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