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BSC Business/EH&S Overview
BSC Business/EH&S Overview
More than 25 Years Advancingthe Practice of Less-Invasive Medicine
More than 25 Years Advancingthe Practice of Less-Invasive Medicine
2Boston Scientific Corporation ConfidentialBSCCOP 12/05
Boston Scientific Corporation Profile
General Facts:
• Founded in 1979 with 38 employees, $2 million in sales. Now Fortune 500 company
• World’s largest medical device company dedicated to less-invasive therapies
• Portfolio of 15,000 products, many with market leading positions
• The TAXUS® drug eluting stent has been the most successfully launched product in the history of the industry
• Corporate HQ: Natick, MA
• Regional HQs: Singapore, Paris, Tokyo
• Website: www.bostonscientific.com
Product Innovation:• 9,000+ Patents issued• $569 Million invested in R&D (’04)• $1.2 Billion in 22 Investments (’04)
Financials:• $5.6 Billion Revenue (’04)• 27.5% CAGR* (’01-’04)• $1.4 Billion Net Income (’04)• NYSE: BSX
Demographics:• 17,500+ Employees• Direct marketing & sales in more than
40 countries• 16 Primary manufacturing locations in
U.S., Ireland & Costa Rica
* Compound Annual Growth Rate
Boston Scientific is a global, multi-billion dollar company focused on less-invasive medical devices and proceduresBoston Scientific is a global, multi-billion dollar company focused on less-invasive medical devices and procedures
3Boston Scientific Corporation ConfidentialBSCCOP 12/05
Boston Scientific products help treat a broad range of medical conditions throughout the bodyBoston Scientific products help treat a broad range of medical conditions throughout the body
VASCULAR SURGERY
ONCOLOGY
ENDOSCOPY
PERIPHERAL VASCULAR
NEUROMODULATION
ELECTROPHYSIOLOGY
GYNECOLOGY
CARDIOVASCULAR
NEUROVASCULAR
UROLOGY
4Boston Scientific Corporation ConfidentialBSCCOP 12/05
DISEASE PREVALENCE BOSTON SCIENTIFIC FACTS
Cardiovascular Disease accounts for more than 40 percent of all deaths in U.S. BSC interventional cardiology products are used in
about one million procedures annually
Neurovascular Disease is one of the leading causes of death in the U.S.
BSC’s is a leading supplier of products for neurovascular intervention with less-invasive technologies under investigation for treating intra-cranial atherosclerotic and carotid artery disease
Abdominal Aortic Aneurysm (AAA)
more than one million Americans have AAA; a significant portion can be treated with early detection
BSC is a worldwide leader of surgical aortic repair and currently has less-invasive technology in development
Peripheral Vascular Disease
afflicts approximately 3.7 million people in the U.S. and is a common condition in Americans 65 and older BSC is a leader in peripheral vascular treatment
Heart Arrhythmias as many as two million Americans are living with atrial fibrillation, with about 160,000 new cases each year, increasing patient’s chances of stroke by five times
BSC’s cardiac ablation procedures are used in 80 percent of the electrophysiology labs in the U.S.
Incontinence affects approximately 13 million adults in the U.S., occurring in women twice as often as men
More than 20,000 women per year are treated with BSC’s urinary incontinence products
Kidney Stones more than one million Americans are treated for kidney stones each year
Worldwide, nearly 350,000 patients annually are treated with BSC’s kidney stone-related devices
Uterine Fibroidsdevelop in 25 percent of all women at some point in their lives, and nearly six million cases are left untreated
BSC’s Uterine fibroid embolization is a growing alternative treatment, with >13,000 procedures performed in 2004
Pancreaticobiliary Disease (gallstones)
more than 500,000 Americans undergo gallbladder surgery each year
BSC Endoscopy is a market leader in endoscopic devices to treat gallstones
Boston Scientific offers market leading technologies for many of the most prevalent and debilitating diseasesBoston Scientific offers market leading technologies for many of the most prevalent and debilitating diseases
5Boston Scientific Corporation ConfidentialBSCCOP 12/05
Sampling of Boston Scientific’s Product Portfolio
Over 25 years of Innovation has led to a broad portfolio of more than 15,000 productsOver 25 years of Innovation has led to a broad portfolio of more than 15,000 products
BalloonsDetachable Coils Grafts Enteral Feeding Ablation
EmbolicsCardiac Mapping Stents Stone Retrieval Embolic Protection
Peripheral DilatationBiopsy Systems Ureteral Stents Catheters / Guidewires Neuro-stimulation
6Boston Scientific Corporation ConfidentialBSCCOP 12/05
Guidant AcquisitionRedefining “Bold”Guidant AcquisitionRedefining “Bold”
Consistent with BSC Strategy
Long-term interest in CRM
DES Alternative
Diversification and Growth
7Boston Scientific Corporation ConfidentialBSCCOP 12/05
Boston Scientific is organized into three major groups and eleven distinct businessesBoston Scientific is organized into three major groups and eleven distinct businesses
Interventional Cardiology
PeripheralInterventions
VascularSurgery
Neurovascular Electrophysiology
Cardiovascular
Urology
Gynecology
Endoscopy Oncology
Endosurgery Neuromodulation
AuditoryPain Management
2004 Revenues $5.6 Billion
Cardiovascular’04 Revenue = $4.480B
% Company Total = 80%
Endosurgery’04 Revenue = $1.088B
% Company Total = 19%
Neuromodulation’04 Revenue = $46M
% Company Total = 1%
Gro
ups
Busin
esse
s
8Boston Scientific Corporation ConfidentialBSCCOP 12/05
Boston Scientific has evolved from early pioneer to industry leaderBoston Scientific has evolved from early pioneer to industry leader
2 3 8 13 16 22 31 47 71 99 116 159 230315 380 449
1,191
1,551
1,831
2,234
2,842
2,6642,673
2,919
3,476
5,624
'79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
Global Leadership in Interventional Medicine
John Abele and Pete Nicholas partner to form Boston Scientific
BSC goes public with IPO on NYSE
BSC acquires eight companies in two years
Begins first clinical trial of DES
TAXUS DES U.S. FDA approval
$6,283Revenue ($000)
Phase IVNext Chapter
Phase II Strategic Mass(Via Acquisitions)
Phase I Less-Invasive MedicinePioneer/Leader
Phase III Stent Integration& DES Leadership
9Boston Scientific Corporation ConfidentialBSCCOP 12/05
We Achieve Global Leadership in our Key MarketsWe Achieve Global Leadership in our Key Markets
Interventional Cardiology
• 90%+ of sales from market leading products• Represents 73% of BSC total business
Endosurgery(Endoscopy, Oncology, Urology, Gynecology)
• 75% of sales from market leading products• Represents 19% of BSC total business
10Boston Scientific Corporation ConfidentialBSCCOP 12/05
BSC has made significant internal R&D investments to champion new ideas and products into new marketsBSC has made significant internal R&D investments to champion new ideas and products into new markets
New Product DevelopmentDelivering what’s next.TM
$199
$274
$343
$452
$569
2000 2001 2002 2003 2004
R&D Investment$Millions
2,150
2,535
2,892
3,307
3,617
2000 2001 2002 2003 2004
U.S. Patents Issued
At year-end 2004: 6,000+ applications pending worldwide
11Boston Scientific Corporation ConfidentialBSCCOP 12/05
The result of our Hybrid Model is a Robust Product Pipeline The result of our Hybrid Model is a Robust Product Pipeline
Product Priorities that will shape our future
Cardiac Rhythm Management (CRM)
Cameron Healthcardioverter defibrillator
Endovascular Aortic Repair (EVAR)TriVascular AAA
Stent Graft 1
Next-GenerationDrug-Eluting Stents
TAXUS® Liberté™ 2
CarotidStent
EndoTex NexStent 1
1. CAUTION: Investigational device. Limited by Federal law to investigational use. 2. Not available for sale in the United States. 3. Humanitarian Use Device.
PainManagement
Precision Spinal Cord Stimulation System
PainManagement
bion Microstimulator 1
Single-Use EndoscopeEndovations
Endoscopy Suite
NeurovascularStent
Wingspan™ Stent System with Gateway PTA Balloon Catheter3
12Boston Scientific Corporation ConfidentialBSCCOP 12/05
What Defines the BSC EH&S ProgramWhat Defines the BSC EH&S Program
Focus and clarity
Measuring our contribution; we put points on the board
Ruthless prioritization; we drive what matters
Compliance as a given; integrity in our actions
Developing integrated business-driven solutions
13Boston Scientific Corporation ConfidentialBSCCOP 12/05
Highly Valued AspectsHighly Valued Aspects
Environmental Management Systems
Injury Incidence and Severity Rates
GHG Emissions/Energy Efficiency
Risk
Compliance
14Boston Scientific Corporation ConfidentialBSCCOP 12/05
TRIRTRIR
0 2 4 6 8 10 12
FV
SD
TULL
SJ
SPEN
QDC
SR
WAY
LTKY
CR
FRE
MV
MG
MI A
GWY
GF
CORK
VAL
NTK
MLB
KI RK
WTN
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
YEAR 2002 2003 2004 2005 2006 2007 2008 2009
15Boston Scientific Corporation ConfidentialBSCCOP 12/05
LWRLWR
0
20
40
60
80
100
120
YEAR 2003 2004 2005 20060 50 100 150 200
FV**SD**
WAYMIAGFMV
LTKYSPENQDCMGSJCR
VALCOR
GWYTULLNTKMLBWTNKIRK
16Boston Scientific Corporation ConfidentialBSCCOP 12/05
Global Ergonomics Initiative( a.k.a. ergo-lean)Global Ergonomics Initiative( a.k.a. ergo-lean)
Premise: Wasted Motion/Posture, Frequency and Force = Ergonomic Risk and Inefficiencies
Approach: Provide Fast and Quantitative “Same as Same” Tools Across Sites
Integrating into Lean Manufacturing
17Boston Scientific Corporation ConfidentialBSCCOP 12/05
Results SummaryResults Summary
Risk Reductions Ranging Between 25-80%
New York Forecasting $670 K Income Increase Using FORM (3X) Based Upon Measured Cycle Time
Costa Rica Forecasting $5.1 MM Income Increase using FORM (8X) Based Upon Measured Output
Tullamore Projecting 27% Cycle Time Improvement with 8 FTE’s Freed, 20% Reduction in Floor Space
We Put Points on the Board
18Boston Scientific Corporation ConfidentialBSCCOP 12/05
Why ISO-14001 CertificationWhy ISO-14001 Certification
Our Most Effective Response to Environmental Tender Requests; Currently at 70+% VOP
Focused “Aspects Analysis” Will Drive the Correct Environmental Elements
Supports BSC Environmental Program and External Perception
19Boston Scientific Corporation ConfidentialBSCCOP 12/05
Expanding Environmental programExpanding Environmental program
Desire to Have BSC Recognized as an Environmental Leader
Are Examining all BSC Environmental Aspects
Premise is Based on “Triple Win” Elements
20Boston Scientific Corporation ConfidentialBSCCOP 12/05
Choosing our Business PartnersChoosing our Business Partners
BSC is a performance based company, “Delivering what’s next”
Partners need to be performance, not process, based
We expect the best people
We look for team culture, with the ability to listen, and the courage to lead
We expect fair pricing
We watch accountability
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