Boston Scientific Addresses Japan Business Irregularities.NATICK, Mass., Nov. 3 /PRNewswire/ -- Boston Scientific The Boston Scientific Corporation (NYSE: BSX) (abbreviated BSC), is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, Corporation (NYSE NYSE
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BSX Bicycle Super-X (Cross) ) announced today that in connection with certain routine internal review, analysis and audit procedures, it has detected the occurrence of business irregularities in the operations of its Japanese subsidiary. The irregularities detected involve shipments of products that have been improperly recorded as sales to the subsidiary's dealer network in Japan. Based on preliminary information, the magnitude of the irregularities detected is believed to range between $40 and $50 million in improperly recorded sales for the nine months ended September 30, 1998, and, additionally, net unrealizable assets of approximately $40 million related to similar improper sales recorded in prior periods. The Company expects to report sales for 1998 in excess of $2 billion dollars worldwide and it believes that the irregularities identified are limited to the Japan operations.
The Company is in the process of aggressively investigating further the irregularities identified and is attempting to determine the effect, if any, on previously issued financial statements. The Company hopes to complete its investigation within the next several weeks.
Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices. The Company's products are used in a broad range of interventional medical specialties Medical Specialties
See also anatomy; disease and illness; drugs; health; remedies; surgery.
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This press release contains forward looking statements. The Company wishes to caution the reader of this press release that actual results may differ from those discussed in the forward looking statements and may be adversely affected by, among other things, findings of the ongoing investigation, the ability of the Company to implement its overall business strategy in Japan and worldwide, and other factors described in the Company's filings with the Securities and Exchange Commission.