MARLBOROUGH, Mass.,
June 8, 2016 /PRNewswire/
-- Boston Scientific Corporation (NYSE: BSX) today announced a
global restructuring program to build on the progress the company
has made in executing long-term growth strategies and bringing
differentiated value and innovation to patients and healthcare
systems. The program is focused on developing global
commercialization, technology and manufacturing capabilities in key
growth markets, continuing implementation of the company's plant
network optimization strategy and expanding operational
efficiencies in support of the company's operating income margin
goals.
Boston Scientific estimates that the program will reduce gross
annual pre-tax operating expenses by approximately $115 million to $150 million by the end of 2020
as program benefits are recognized. The company expects to reinvest
a substantial portion of the savings in strategic growth
initiatives.
"We are taking these steps to build on our momentum and meet the
challenges of affordable health care around the globe," said
Mike Mahoney, chief executive
officer and chairman of the board, Boston Scientific. "We will
continue to invest in strategic growth opportunities that enhance
our reach, capabilities and efficiency to sustain our global
competitiveness. These initiatives can help us deliver
innovative solutions to more patients and enable profitable growth
over the long term."
While Boston Scientific expects some employee attrition and
targeted headcount reductions to result from these restructuring
initiatives, the company anticipates that its overall employee base
will remain relatively unchanged upon completion of the
restructuring program as new jobs are created in areas of growth
and resources are deployed to support an expanding portfolio and
growing global market needs.
Program implementation is anticipated to result in total pre-tax
charges of approximately $175 million to
$225 million. Several program activities will be initiated
immediately and all activities are expected to be substantially
completed by the end of 2018, subject to any employee
representative consultative procedures required under local
laws.
About Boston Scientific
Boston Scientific transforms
lives through innovative medical solutions that improve the health
of patients around the world. As a global medical technology leader
for more than 35 years, we advance science for life by providing a
broad range of high performance solutions that address unmet
patient needs and reduce the cost of healthcare. For more
information, visit www.bostonscientific.com and connect on
Twitter and Facebook.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of
1934. Forward-looking statements may be identified by words
like "anticipate," "expect," "project," "believe," "plan,"
"estimate," "intend" and similar words. These forward-looking
statements are based on our beliefs, assumptions and estimates
using information available to us at the time and are not intended
to be guarantees of future events or performance. These
forward-looking statements include, among other things, our
financial performance, our business plans, and our positioning for
revenue and earnings growth. If our underlying assumptions
turn out to be incorrect, or if certain risks or uncertainties
materialize, actual results could vary materially from the
expectations and projections expressed or implied by our
forward-looking statements. These risks and uncertainties, in
some cases, have affected and in the future could affect our
ability to implement our business strategy and may cause actual
results to differ materially from those contemplated by the
statements expressed in this press release. As a result,
readers are cautioned not to place undue reliance on any of our
forward-looking statements.
Risks and uncertainties that may cause such differences include,
among other things: future economic, political, competitive,
reimbursement and regulatory conditions; new product introductions
and the market acceptance of those products; markets for our
products; expected pricing environment; expected procedural
volumes; the closing and integration of acquisitions; clinical
trial results; demographic trends; intellectual property rights;
litigation; financial market conditions; the execution and effect
of our restructuring program; the execution and effect of our
business strategy, including our cost-savings and growth
initiatives; and future business decisions made by us and our
competitors. New risks and uncertainties may arise from time
to time and are difficult to predict. All of these factors are
difficult or impossible to predict accurately and many of them are
beyond our control. For a further list and description of
these and other important risks and uncertainties that may affect
our future operations, see Part I, Item IA - Risk
Factors in our most recent Annual Report on Form 10-K filed
with the Securities and Exchange Commission, which we may update in
Part II, Item 1A - Risk Factors in Quarterly Reports on
Form 10-Q we have filed or will file hereafter. We disclaim
any intention or obligation to publicly update or revise any
forward-looking statement to reflect any change in our expectations
or in events, conditions, or circumstances on which those
expectations may be based, or that may affect the likelihood that
actual results will differ from those contained in the
forward-looking statements. This cautionary statement is
applicable to all forward-looking statements contained in this
press release.
CONTACTS
Media:
Kelly Leadem
508-683-5543 (office)
Corporate Communications
Boston Scientific Corporation
kelly.leadem@bsci.com
Investors:
Susie Lisa, CFA
508-683-5565 (office)
Investor Relations
Boston Scientific Corporation
investor_relations@bsci.com
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SOURCE Boston Scientific Corporation