Boston Scientific stents lag, CFO resigns, shares fall
By Ransdell Pierson
(Reuters) - Boston Scientific Corp (BSX.N: Quote), which is in the midst of an attempted turnaround, reported weak sales of its heart stents and provided a disappointing fourth-quarter company sales forecast, sending its shares almost 7 percent lower on Thursday.
The medical device maker also caused market jitters by announcing that Jeffrey Capello, its chief financial officer since early 2010, would resign effective December 31. He will be replaced by Daniel Brennan, the company's corporate controller.
"It was a bit of a surprise, and the company only said he has his sights set on bigger opportunities," Morningstar analyst Debbie Wang said, referring to Capello's planned departure.
Wang speculated that Mike Mahoney, who became chief executive officer of Boston Scientific last November, is simply putting together his own team.
"But given how many skeletons have fallen out of the company's closet, any hint something might go wrong makes everyone jittery," she said. She was referring to heavy debt from its $27 billion purchase in 2009 purchase of Guidant Corp, costly product recalls and declining sales of several of its products in recent years.
Wang said Capello deserved credit for a number of smart acquisitions during his term, despite heavy debt inherited from the company's much-criticized purchase of Guidant.
The medical device maker, which a day earlier announced a new round of job cuts, reported a narrower third-quarter loss on flat sales of its array of medical devices.
Global sales of its interventional cardiology products, primarily heart stents, fell 4 percent to $472 million in the quarter. Continued...