Monday, October 13, 2008

Report: BSX chief buys 350k shares of company stock

By Mass High Tech Staff

In a display of confidence amidst economic uncertainty, Boston Scientific Corp. CEO James Tobin has opted to buy 350,000 shares of company stock, worth about $2.1 million, according to the Boston Business Journal. Tobin exercised options to buy the stock at $6.13 per share, set to expire December 6, 2010, the Journal reported.

The stock purchase follows a tumultuous week, and month, for the Natick-based medical devices maker. Last week, Boston Scientific (NYSE: BSX) co-founders Pete Nicholas and John Abele sold more than $100 million worth of company stock, about 13 million shares, that the two “held directly or indirectly, or in a trust for Abele’s children.” That sell-off prompted the company to issue a statement explaining that it was executed by automated trading programs.

Also last week, Boston Scientific’s appeal of a U.S. Supreme Court ruling that the company infringed on Johnson & Johnson Co.’s patent for coronary stents was rejected, resulting in Boston Scientific being ordered to pay a total of $703 million. The case, decided in court in 2000, resulted with an original order from the court for Boston Scientific to pay Johnson & Johnson $324 million in damages stemming from Boston Scientific’s selling of the NIR stent, which Boston Scientific has since stopped selling.

Boston Scientific, a global developer, manufacturer and distributor of medical devices, reported a 2007 net loss of $495 million on revenue of $8.4 billion. The firm employed 27,500 workers worldwide as of December 2007.