Boston Scientific to cut jobs after Guidant sales slump

July 20, 2007
Job cuts are on the way at Boston Scientific Corp. after the Boston company missed analysts' profit estimates in part because of a 5.3-percent decline in sales of implantable defibrillators manufactured by Guidant Corp., the Indianapolis company that Boston Scientific acquired last year.

Boston Scientific officials told analysts during a conference call this morning that the company would "reduce expenses and head count," according to Bloomberg.

The company returned to profit by posting $115 million in net income in the second quarter after having digested its $27.5 billion acquisition of Guidant.

However, most of the profit shortfall was caused by a 32-percent drop in sales of drug-coated stents. The stents help prevent arteries from closing after surgery.

Last week, Boston Scientific agreed to pay $195 million to settle lawsuits that claimed Guidant hadn't been forthcoming about defects in its heart defibrillators. Guidant recalled 109,000 defibrillators that had been tied to seven deaths.
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