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| Boston Scientific CEO Mike Mahoney |
Mike Mahoney has held the top spot at Boston Scientific ($BSX) for about four months, and in that time alone, the company has cut spending, shed jobs and made some acquisitions--all part of his plan to turn things around for the sluggish devicemaker.
Mahoney got into specifics with investors Tuesday, acknowledging that the overall markets for Boston Scientific's largest businesses--especially cardiology--are unlikely to grow much, but saying the company has a plan to outpace them, the Boston Globe reports. Boston Scientific is rolling out new devices and working to expand indications for existing ones, and Mahoney says that'll help get the CRM and interventional cardiology units back in the black.
"We really do see this as a new era for the company," Mahoney said. "Clearly these are challenging markets, but they are the markets we have to compete in. We believe that the innovations in the portfolio that we have will improve patients' lives."
Beyond the heart, Mahoney touts the company's investments in treating atrial fibrillation and hypertension, all thanks to last year's $90 million buyout of electrophysiology specialist Rhythmia Medical and $425 million acquisition of renal denervation outfit Vessix Vascular. Boosting its presence in those fast-growing spaces will help drive overall revenue, Mahoney said.
Mahoney's planned turnaround is two-sided: All that M&A will give Boston Scientific new products to ship, but the company is also slimming down to cut costs, planning to slash another 900 to 1,000 jobs this year. The announcement has been well-received by investors, as Boston Scientific's shares have jumped almost 10% since the disclosure, and Mahoney indicated that the company might not be done tightening its ship.
"We still believe there's a lot of room for Boston Scientific to become leaner," he said.
- read the Globe story