Even medical companies are affected by recession. Medical companies are paid by insurance companies, which are paid by employers. For patients who are covered by MediCare, your assessment might be correct. For all the others, companies will look for ways to skimp on costly benefits, and insurance companies will likewise look for ways to cut costs. You will see more BMS than DES used, cutting into margins, unless it can be clearly shown that the DES is a more cost effective approach within a short period of time. (Think within a year, rather than within 5 years.)
If JNJ and ABT can cut their prices 10% during a recession in order to accommodate insurance companies, BSX will be forced to follow suit in order to maintain their market share. Where is the extra margin available to BSX to make this cut? It has basically already been pledged to make payments on the debt.
Medical companies may do better during a recession than other companies, but if there is growth, it will likely come from the fact that more baby boomers are entering the age where they need some sort of medical care. Insurance companies will still look for ways to cut costs.
Does anyone know what the book value was for Celsion?
Had it been maintained at the purchase price of $60 million, or had it already been written down to its sale price of $2.6 million?
Applying the valuation of recent assets for sale to the entire company's assets (2.5 times sales) suggests a share price around 7. Can BSX show enough growth in the remaining assets to justify a higher sales multiple?
I wouldn't be so sure. BSX has a way of turning victory into defeat, and defeat into disaster. The same people are running the show, still repeating the same errors. It is an obvious takeover candidate, and the price of relief is getting lower all the time. Just give me 16 now, and it will be over.