Investors reward Boston Scientific for making progress

Boston Scientific CEO Mike Mahoney

Boston Scientific ($BSX) is now several years into a marathon reorganization plan that has included thousands of layoffs, the acquisition of lots of new companies and an ongoing bid to reduce debt. Investors appear to be finally paying attention, considering its stock price is reaching heights not seen in years.

The struggling Massachusetts medical device giant traded at $11.65 early on Sept. 6, just over levels last seen in late August 2009. The price reflects steady gains throughout the last 12 months, up from a low of about $5.14 per share the week of Nov. 12, 2012. It also builds on a nearly 6% gain the company enjoyed on Sept. 5, something Seeking Alpha notes came a day after the company reported positive data in the Journal of Allergy and Clinical Immunology relating to its "breakthrough" Alair Bronchial Thermoplasty System.

But the stock price recovery has been steady all year, and investors are likely responding to plenty of factors that all fall under the realm of "better" and "good" news.

Boston Scientific reported $1.8 billion in net sales during its 2013 second quarter, a 1% dip, but a much lighter decline than in previous quarters. While traditional cardiovascular sales kept declining, endoscopy sales and neuromodulation revenues kept growing, reflecting the success of the strategy the company has used--and which new president and CEO Mike Mahoney has continued--in diversifying the company's technology and product focus.

Other strategies that are paying off include Boston Scientific's focus on emerging markets. Last month, for example, the company launched its Cognis CRT-D device, a defibrillator billed as the thinnest implant of its kind, in China. It has grown emerging markets revenue by double digits through targeting China but also markets in Brazil, Russia and India.

In life and in business, nothing helps reverse negative perceptions more than success, and Boston Scientific has focused hard on that area on the regulatory and M&A fronts. In recent months, it has racked up a number of FDA clearances for new electrophysiology technology, some of which it obtained through its $90 million Rhythmia Medical acquisition. And the company invested in the space even further when it snatched up rival C.R. Bard's ($BCR) electrophysiological business for $275 million. And then there's Watchman--an acquired implant designed to prevent strokes in atrial fibrillation patients that continues to rack up stunning data and is coming close to the regulatory finish line.

We'll see if Boston Scientific can continue this momentum in the weeks ahead.

- here's the Seeking Alpha report

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