Boston Scientific’s CRM unit shifts gears
This article was originally published in The Gray Sheet
Executive Summary
Cardiac rhythm management division will cut 500-600 jobs in Q1, impacting R&D and other functions as the firm shifts resources "from less productive projects to more productive ones," Boston Scientific CEO Jim Tobin says. Announced Jan. 8, the action aims to boost innovation and productivity, regain lost market share and build on initiatives begun last year to "restore trust and confidence" in CRM in the wake of 2005 and 2006 recalls. The firm notes preliminary Q4 ICD revenue of $356 million, up 13% from Q3 but down 4.3% from year-ago sales of $372 million, recorded by predecessor firm Guidant. Meanwhile, competitor St. Jude announced Jan. 8 preliminary Q4 ICD sales of $289 million, up 3.2% from a year ago. Market leader Medtronic reported ICD sales of $764 million for its most recent fiscal quarter (ended Oct. 27), up 4% year-over-year (1"The Gray Sheet" Nov. 27, 2006, p. 5). The market is "starting to resume its growth," Tobin said...