Oct. 19, 2009 (PR Newswire) -- NATICK, Mass., Oct. 19 /PRNewswire-FirstCall/ -- Boston Scientific Corporation (NYSE: BSX) today announced financial results for the third quarter ended September 30, 2009, as well as guidance for net sales and earnings per share (EPS) for the fourth quarter and full year 2009.
Third quarter highlights (Sales growth rates are constant currency):
-- Increased sales three percent to $2.025 billion and achieved adjusted
EPS of $0.19, both within the Company's guidance ranges
-- Reported GAAP EPS of $0.13, at the high end of the Company's range
-- Maintained leadership position in the worldwide drug-eluting stent (DES)
market with a 41 percent share, including a 49 percent share of the U.S.
market and a 47 percent share of the Japanese market
-- Increased worldwide cardiac rhythm management (CRM) product sales eight
percent
-- Increased worldwide Endosurgery sales eight percent, including a 10
percent increase in Endoscopy sales
-- Increased worldwide Neuromodulation sales 21 percent
-- Prepaid $225 million of term loan debt
-- Settled 14 outstanding patent litigation matters with Johnson & Johnson
"So far this year, CRM market growth has not been as strong as expected, but our CRM business has continued to grow, and we have not seen the slowdown in hospital stocking described by St. Jude," said Ray Elliott, President and Chief Executive Officer of Boston Scientific. "In DES, we maintained our worldwide leadership position. A key component of that leadership has been our TAXUS franchise, which has been studied in more than 46,000 patients over the past nine years. The COMPARE data presented last month are inconsistent with the overall body of TAXUS evidence, and we expect that the results of future studies will be more in line with those of other TAXUS trials. Single-center, non-double blinded, underpowered studies, such as COMPARE, are not considered optimal trial protocol. Moreover, we have the industry's only two-drug platform and the finest sales and marketing team in the business, two important competitive advantages that should help ensure continued DES leadership."
Net sales for the third quarter of 2009 were $2.025 billion, as compared to net sales of $1.978 billion for the third quarter of 2008, which included sales from divested businesses of $12 million. Excluding the impact of foreign currency and sales from divested businesses, net sales increased three percent over the prior period.
Worldwide CRM sales for the third quarter -- on a reported basis -- were as follows:
(in millions) U.S. International Worldwide
------------ ---- ------------- ---------
Q3 2009 Q3 2008 Q3 2009 Q3 2008 Q3 2009 Q3 2008
------- ------- ------- ------- ------- -------
ICD systems $314 $291 $131 $132 $445 $423
Pacemaker systems 90 86 73 63 163 149
---- ---- ---- ---- ---- ----
404 377 204 195 608 572
Electrophysiology 30 30 8 10 38 40
---- ---- ---- ---- ---- ----
Total CRM $434 $407 $212 $205 $646 $612
==== ==== ==== ==== ==== ====
Worldwide coronary stent system sales for the third quarter -- on a reported basis -- were as follows:
(in millions) U.S. International Worldwide
------------ ---- ------------- ---------
Q3 2009 Q3 2008 Q3 2009 Q3 2008 Q3 2009 Q3 2008
------- ------- ------- ------- ------- -------
Drug-eluting $222 $209 $189 $187 $411 $396
Bare-metal 14 19 27 31 41 50
---- ---- ---- ---- ---- ----
Total coronary
stent systems $236 $228 $216 $218 $452 $446
==== ==== ==== ==== ==== ====
Reported net income for the third quarter of 2009 was $200 million, or $0.13 per share. Reported results included litigation-related credits, restructuring and restructuring-related costs and amortization expense (after-tax) of $91 million, or $0.06 per share, which consisted of:
-- a $37 million ($58 million pre-tax) credit associated with the reduction
of previously recorded reserves associated with certain
litigation-related matters;
-- $21 million ($28 million pre-tax) of restructuring and
restructuring-related costs associated with the Company's Plant Network
Optimization program and 2007 restructuring plan; and
-- $107 million ($126 million pre-tax) of amortization expense.
Adjusted net income for the third quarter of 2009, excluding these net charges, was $291 million, or $0.19 per share.
Reported net loss for the third quarter of 2008 was $62 million, or $0.04 per share. Reported results included intangible asset impairment charges; acquisition-, divestiture-, and litigation-related net charges; restructuring and restructuring-related costs and amortization expense (after-tax) of $298 million, or $0.20 per share. Adjusted net income for the third quarter of 2008, excluding these charges, was $236 million, or $0.16 per share.
"The quarter was marked by significant clinical accomplishments," said Elliott. "We announced final results from the MADIT-CRT trial, which clearly demonstrated that CRT-D therapy slows the progression of heart failure, and we completed enrollment in the PLATINUM workhorse trial evaluating our next-generation PROMUS® Element(TM) Everolimus-Eluting Coronary Stent System. We also obtained key product approvals, including CE Mark for the LATITUDE Patient Management System and FDA approval of the TAXUS® Liberte® Long Paclitaxel-Eluting Coronary Stent System. These developments are further evidence of the strength and promise of our CRM and Cardiovascular businesses."
Guidance for Fourth Quarter and Full Year 2009
The Company estimates net sales for the fourth quarter of 2009 of between $2.025 billion and $2.125 billion. Adjusted earnings -- excluding acquisition-related credits, restructuring and restructuring-related costs, and amortization expense -- are estimated to range between $0.17 and $0.21 per share. The Company estimates net income on a GAAP basis of between $0.20 and $0.25 per share.
The Company has updated its net sales estimate for the full year of 2009 to between $8.134 billion and $8.234 billion. The Company now expects adjusted earnings for the full year -- excluding intangible asset impairment charges; acquisition-, divestiture-, and litigation-related net charges; restructuring and restructuring-related costs; discrete tax items; and amortization expense -- of between $0.75 and $0.79 per share. The Company expects net income on a GAAP basis of between $0.43 and $0.48 per share.
Boston Scientific officials will be discussing these results with analysts on a conference call at 8:00 a.m. (ET) Tuesday, October 20. The Company will webcast the call to all interested parties through its website: www.bostonscientific.com. Please see the website for details on how to access the webcast. The webcast will be available for one year on the Boston Scientific website.
Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties. For more information, please visit: www.bostonscientific.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our financial performance, our growth strategy, new product approvals, clinical trials, our market position, acquisitions and divestitures, restructuring activities and litigation matters. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.
Factors that may cause such differences include, among other things: future economic, competitive, reimbursement and regulatory conditions; new product introductions; demographic trends; intellectual property; litigation; financial market conditions; and future business decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item IA- Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements.
