Boston Scientific Announces Results For Third Quarter 2015

MARLBOROUGH, Mass., Oct. 28, 2015 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) generated sales of $1.888 billion during the third quarter ended September 30, 2015, compared to the company's guidance range for the quarter of $1.790 to $1.840 billion. This represents 9 percent operational revenue growth (constant currency basis, excluding divested businesses) and an increase of 2 percent on a reported basis, all compared to the prior year period. The company achieved adjusted earnings per share of $0.24 for the period, compared to $0.20 a year ago, and reported a GAAP loss of $198 million, or $(0.15) per share, compared to earnings of $0.03 a year ago.

"Our excellent third quarter performance was driven by strong sales and differentiated adjusted operating margin expansion," said Mike Mahoney, president and chief executive officer, Boston Scientific. "Our global teams continue to advance our mission to transform the lives of patients through innovative medical solutions. In this quarter, we launched several exciting products, invested in multiple early-stage companies and began the important work of integrating the AMS male urology portfolio into Boston Scientific."

Third quarter financial results and recent developments:

• Reported third quarter sales of $1.888 billion, representing 9 percent operational revenue growth and an increase of 2 percent on a reported basis, all compared to the prior year period.
  
  
• Achieved 5 percent organic revenue growth. Organic revenue growth excludes the impact of sales from divested businesses, changes in foreign currency exchange rates and sales from the acquisitions of the interventional business of Bayer AG (Bayer) and the American Medical Systems (AMS) male urology portfolio over the prior year period.
  
  
• Delivered adjusted earnings per share of $0.24 compared to the company's guidance range of $0.21 to $0.23 per share, and reported a GAAP loss of $(0.15) per share compared to the company's guidance range of $0.10 to $0.13 per share, primarily due to litigation-related charges.
  
  
• Achieved third quarter revenue growth of 17 percent in MedSurg (8 percent organic), 9 percent in Cardiovascular (6 percent organic) and 2 percent in Rhythm Management (2 percent organic), all on a constant currency basis over the prior year period.
  
  
• Delivered strong operational revenue growth across all three major regions. Achieved 10 percent growth in the U.S. (4 percent organic) and 9 percent growth (7 percent organic) in both Europe and AMEA (Asia, Middle East and Africa), all on a constant currency basis over the prior year period. Delivered 13 percent operational and organic revenue growth in Emerging Markets.
  
  
• Gained Food and Drug Administration (FDA) approval for the SYNERGY Bioabsorbable Polymer Drug-Eluting Stent System, creating a new category of coronary drug-eluting stents, and received Investigational Device Exemption for the EVOLVE Short Dual Anti-Platelet Therapy study.
  
  
• Announced 12-month data from the MAJESTIC trial demonstrating the strong safety profile and primary patency rate* (of more than 96 percent) of the Eluvia Drug-Eluting Vascular Stent System.
  
  
• Received FDA approval of the Innova Vascular Self-Expanding Stent System to treat patients with peripheral artery disease.
  
  
• Gained CE mark for MRI-compatible labeling for the current family of Extended Longevity and MINI implantable cardioverter defibrillator systems** and the X4 cardiac resynchronization therapy defibrillator systems**, enabling patients implanted with these devices to safely undergo MRI diagnostics.
  
  
• Received CE mark for the Vercise Primary Cell Deep Brain Stimulation System**, including the first directional lead with current steering and expanded programming flexibility.
  
  
• Announced strategic alliance with Preventice Solutions to expand the Boston Scientific portfolio of remote monitoring solutions.
  
  
• Closed acquisition of the AMS male urology portfolio from Endo International plc, further strengthening Boston Scientific's leadership in urology and pelvic health.

* Primary patency defined as duplex ultrasound peak systolic velocity ratio  2.5 and absence of TLR or bypass; data reflect actual values (not Kaplan Meier estimates).

** Investigational device and not available for sale in the U.S. CE-marked device, available for sale in CE-mark countries.

Worldwide sales for the third quarter: