Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : AMERICAN BIOMED, Minimally Invasive Technology (ABMI) -- Ignore unavailable to you. Want to Upgrade?

To: Brenda L. Greer who wrote (1291)	6/16/1998 12:56:00 PM
From: Jeffrey L. Henken	Respond to of 2887

OFF TOPIC-It's already changed. Now stop picking on me. I feel OLD today. Maybe it's the weather? Regards, Jeff

To: Brenda L. Greer who wrote (1291)	6/16/1998 12:59:00 PM
From: Jeffrey L. Henken	Read Replies (1) \| Respond to of 2887

FROM THE MOTLEY FOOL-Boston Scientific Announces Acquisition fnews.yahoo.com Medical device manufacturer Boston Scientific (NYSE:BSX - news) advanced $2 3/8 to $63 3/8 this morning after announcing that it will acquire cardiovascular devices specialist Schneider Worldwide from pharmaceutical company Pfizer (NYSE:PFE - news) for $2.1 billion in cash. Boston Scientific, based in Natick, Massachusetts, is the largest medical device company in the world dedicated to minimally invasive therapies -- devices that are inserted in natural openings in the body or with the help of small incisions. The company has grown its topline at a compound annual rate of 28% since 1993 due to product line acquisitions as well as internal development, and it markets over 14,000 products in roughly 50 categories. These products are broadly broken down as either vascular or non-vascular depending on the region of the body where they are applied. With this acquisition, Boston Scientific intends to take the lead in the market for peripheral stents -- utilized in blood vessel areas outside of the heart -- which is not quite as hotly contested as the market for coronary stents, but is nevertheless expected to grow by 12% per year on into the next century. The company now stands within a couple weeks of a probable FDA approval of two stents, the Radius and the Nir. The launch of these products is expected to boost sales growth to 30% by the time the fourth quarter rolls around and will probably give operating margins a nudge upward as well. If the company can manage to capture 15% of the U.S. stent market in 1999, it can probably manage $210 million in stent revenues, which would put it on decent footing with respect to its main competitors: Johnson & Johnson (NYSE:JNJ - news) , Guidant Corp. (NYSE:GDT - news) , and Arterial Vascular Engineering (Nasdaq:AVEI - news) . Two critical factors in gaining market share are superior technology and the ability to leverage a broader product line in order to increase the efficiency of the purchasing process for the buyers. Small companies are going to experience increasing difficulty in establishing new customer relationships, while large companies can distribute products on a global basis and have the ability to gain access to decision-makers. The big players in the medical devices business have all plowed substantial investments into the growth of their global infrastructure, including all elements of sales and marketing as well as the regulatory, legal, and manufacturing aspects of their operations. This allows them to leap regulatory and patent hurdles that cause smaller companies to stumble. Once they get to market, they can effectively deal with large purchasing organizations and hospitals that increasingly want to deal with no more than three vendors. This is the main reason why Boston Scientific trades at the solid valuation of 6 times sales and 32 times forward numbers.