$21 Billion M&A Heavyweight Takes a Turn … Boston Scientific Announces Major Restructuring

Medical device company Boston Scientific is launching a major global restructuring.

On the 28th, local time, biotech publication Fierce Biotech reported, citing a filing submitted by Boston Scientific, that the company has begun a global restructuring program it aims to complete from this year through 2029. The restructuring will focus on supply chain optimization, production line relocations and organizational changes.

The company expects the restructuring to incur pretax costs of $700 million (approximately 1.05 trillion won) to $800 million (approximately 1.2 trillion won). However, once the plan is completed, it expects to save approximately $500 million (approximately 750 billion won) annually. The savings will be reinvested in plans to secure growth drivers.

Boston Scientific said the restructuring is expected to result in some workforce reductions. However, it did not disclose the specific number of job cuts or the departments affected. At the same time, it added that it will also hire new employees in growth areas.

The decision contrasts with the company’s aggressive mergers and acquisitions (M&A) activity this year. At the beginning of the year, Boston Scientific acquired medical device company Penumbra for $14.5 billion (approximately 21.75 trillion won). It also acquired urology medical device company Valencia Technologies and invested $1.5 billion (approximately 2.25 trillion won) in MiRus.

Analysts at Evercore ISI said in a report, “The plan is not surprising given that a change in the company’s growth trajectory has created the need to restructure its cost base.” Boston Scientific previously lowered its full-year outlook, citing intensifying competition and slowing growth in some business segments, despite first-quarter revenue exceeding expectations.