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.
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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.
GI Dynamics investigational device exemption approval to commence a pilot trial in the U.S.
*Correction, Jan. 11, 2012: This article was originally published with a typo calling the Promus Element a "drug-editing stent" instead of a "drug-eluting stent." Return to the corrected sentence.