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Boston Scientific Corporation Message Board

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  • buckbsx123 buckbsx123 Aug 14, 2012 12:51 AM Flag

    more layoffs

    In the case of BSX, it's the ineptitude of executive "management" on how to run a company, and the need to inflate their "performance bonuses" that drives layoffs. Obamacare is only an excuse for layoffs in the case of BSX, not the reason. Well-run medical device companies that have diversified and growing international sales are doing fine and will not take much of a hit from Obamacare, since Obamacare only taxes US sales of medical devices. Hence even foreign companies with overseas plants that sell foreign-made devices in the US will take a hit from Obamacare as well. BSX has moved most production offshore to Costa Rica and Ireland, but layoffs have started in Ireland.

    BSX revenues have been dropping faster than a dress on prom night for the past 4 years (even before Obama was elected), and the only way management can boost EPS is through layoffs. BSX stock price has crashed from $45 to $5 over the past 8 years. BSX has neglected their R&D pipeline since 2006 when they got the FDA Corporate Warning letter, and they have fallen years behind their competitors in terms of technology. Even with the warning letter lifted, it was a mortal blow to BSX in terms of technological advancement, and you see companies like Edwards and Medtronic with commercialized heart valves, Abbott with the fully-absorbable drug eluting stent commercialized in Europe, and JNJ walking away from the Guidant deal unscathed, while BSX took a $28 billion hit that they can never recover from. Believe me, Nicholas, Abele, Tobin, Elliott, and now Kucheman and Mahoney have done more damage to BSX to the tune of tens of billions of dollars, dwarfing a potential $100 million Obamacare tax.

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    • Even the well run med device co's will see layoffs. Last wk MDT decided to cut sales/ clinicals pay by 10% co wide. Stryker had cuts. You are spot on with your comments, but this industry is about to go asystole. This co suffers from bad mgt and a colonialist as president.

      • 1 Reply to bmeddpt
      • I agree that these layoffs are intended, in part, to offset the tax hit that will occur in 2013 due to the 2% obamacare tax supported by klobuchar and franken. The company has sold this as a consolidation only because they lack the balls to confront the taxer in chief that occupys the whitehouse. Companies need to stand up to these unfair taxes and make the workers realize that taxes have consequences. Obama talks about Romney outsourcing, but then levels a 2% tax on med device companies that has an end result of lost jobs. and OUTSOURCING. At the same time, BSX has a gutless PAC that gives money to democrats because they lack the spine to speak up. If you are liberal on social issues, but conservative on spending, you need to realize that you cannot have personnal freedom without freedom from the type of government power grabs that has happened under Obama. These taxes go directly into more spending, which will put the younger generation in a real spot when they become taxpayers trying to support 50%++ of the US population that doesn't pay any income taxes - its just not sustainable. Obama says time and time again that he'll raise taxes on 'the rich'. Realize that 60% of these taxes will be on businesses. These businesses will then cut wages, cut people or outsource to make up for the profit shortfall caused by the obama/reid 'tax on the rich'. Wake up voters, wake up employees of Stryer, St. Jude, EV3, JNJ, Medtronic and BSC - your security is under attack by Obama/biden.

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