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Device tax, sluggish sales weigh on Boston Scientific, analysts say

Mon, 07/15/2013 - 11:44am
Mass Device

Analysts at Fitch Ratings affirm Boston Scientific's BBB- rating, warning that efforts to cut costs and launch higher-margin products won't quite make up for sluggish sales and the impact of the medical device tax.

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Analysts at Fitch Ratings affirmed a BBB- rating on Boston Scientific (NYSE:BSX), predicting that cost-control efforts and new product launches won't be enough to make up for sluggish sales and the effect of the 2.3% medical device tax.

"The healthcare reform-related 2.3% excise tax on U.S. device sales, which was implemented in January 2013, is expected to pressure margins by approximately 1 percentage point," according to Fitch.

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