Boston Scientific Corporation (Boston Scientific) has reported net sales of $2.02 billion for the third quarter of 2009, compared with the net sales of $1.98 billion in the year-ago quarter. It has also posted a net income of $200 million, or $0.13 per share, for the third quarter of 2009, compared with the net loss of $62 million, or $0.04 loss per share, in the year-ago quarter.
“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.”
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™ 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.