Boston, MA 06/12/2014 (wallstreetpr) – Medical technology device maker Boston Scientific Corporation (NYSE:BSX) has indicated that it is on track to maintain expanding the sales mix overall and get the robust upside from its MedSurg unit. It is a resultant of market development efforts, as well as, global expansion.
Bottom Line
The company presented itself in the Goldman Sachs Group Health Conference. Its senior vice president and president for Endoscopy David Pierce said that pipeline challenges pose a big concern since its ambitious growth plan goals are linked with the contributions from the new products.
Boston has set another ambitious goal of achieving 100 basis points expansion every year in its operating margin. In the near-term, it expects heavily weighted towards the gross margin and in the medium term towards selling, general and administration expenses. The company expects key development in rhythm management margins.
Goldman Sachs Group Inc (NYSE:GS) thinks that Boston’s 30+ margins in MedSurg is competitive relative to its rivals. However, the company continues to be aggressive on cost cutting measures and wants to accelerate the bottom line quicker than the top line. While there is no doubt on pricing pressure, the brokerage thinks that it is less of a headwind compared to its cardio businesses.
Overall, the objective of the company is to get the company back to 3-5% uptick in revenue and at the same time grow at a faster pace in operating income.
Emerging Markets
The investment advisor said that Boston believes in accelerating growth throughout the year 2014. The key to drive growth is to tap the emerging markets since the company believes that endoscopy market is valued at $2.6 billion growing at a pace of more than 4%.
For Boston Scientific Corporation (NYSE:BSX), endoscopy sales are a key driver for growth in emerging nations where its sales surged over 30% during the first quarter of the current year. It will also help Boston getting double-digits emerging market mix versus 8 – 9% at present.
