NATICK, Mass., Feb. 1, 2011 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) today announced financial results for the fourth quarter and full year ended December 31, 2010, as well as net sales and earnings per share (EPS) guidance for the full year and first quarter 2011.
Fourth quarter highlights:
- Reported sales of $2.002 billion with GAAP earnings of $0.15 per diluted share and adjusted earnings per diluted share of $0.20.
- Increased year-over-year International ICD reported sales 6 percent (including 3 points of unfavorable foreign exchange impact), supported by the introduction of several new technologies.
- Received CE Mark approval for INCEPTA, ENERGEN and PUNCTUA, the Company's next-generation cardiac resynchronization therapy defibrillators (CRT-Ds) and implantable cardioverter defibrillators (ICDs).
- Maintained leadership position in the global drug-eluting stent (DES) market with 35 percent share worldwide and U.S. share of 46 percent. Rapidly increased growth in PROMUS® Element sales throughout 2010 with sales of $227 million, exiting the year with nearly a quarter of the European DES market.
- Increased worldwide Neuromodulation sales 8 percent and Endoscopy sales 6 percent.
- Executed on several Priority Growth Initiatives through the recently announced acquisitions of Asthmatx, Sadra Medical, Atritech and Intelect Medical.
- Divested Neurovascular business in January 2011 for $1.5 billion, with expected after-tax proceeds of $1.2 billion.
- Prepaid all $600 million of senior notes due in June 2011 and paid at maturity $250 million of senior notes in January 2011.
"We've made significant progress in our strategy to realign our portfolio through the execution of our Priority Growth Initiatives, with four targeted acquisitions and a divestiture," said Ray Elliott, President and Chief Executive Officer of Boston Scientific. "These acquisitions add promising new technologies to our portfolio and bolster our internal pipeline, which we expect will deliver more than 150 new products through 2015. Proceeds from the divestiture of our Neurovascular business provide us with increased flexibility to fund acquisitions and pay down debt. Nevertheless, we expect 2011 to be a difficult but necessary transition year in part driven by a worsening pricing environment and uncertainty in procedural volumes."
Fourth Quarter 2010
Net sales for the fourth quarter of 2010 were $2.002 billion, as compared to net sales of $2.079 billion for the fourth quarter of 2009, a decrease of 4 percent on both a reported and constant currency basis.
Worldwide cardiac rhythm management (CRM) net sales for the fourth quarter - on a reported basis - were as follows:
(in millions) | U.S. | International | Worldwide | |||||||||||||||||||
Q4 2010 | Q4 2009 | Q4 2010 | Q4 2009 | Q4 2010 | Q4 2009 | |||||||||||||||||
Defibrillator systems | $ | 273 | $ | 307 | $ | 150 | $ | 142 | $ | 423 | $ | 449 | ||||||||||
Pacemaker systems | 74 | 82 | 67 | 76 | 141 | 158 | ||||||||||||||||
Total CRM products | $ | 347 | $ | 389 | $ | 217 | $ | 218 | $ | 564 | $ | 607 | ||||||||||
Worldwide coronary stent system net sales for the fourth quarter - on a reported basis - were as follows:
(in millions) | U.S. | International | Worldwide | |||||||||||||||||||
Q4 2010 | Q4 2009 | Q4 2010 | Q4 2009 | Q4 2010 | Q4 2009 | |||||||||||||||||
Drug-eluting stent systems | $ | 187 | $ | 205 | $ | 190 | $ | 206 | $ | 377 | $ | 411 | ||||||||||
Bare-metal stent systems | 9 | 12 | 23 | 30 | 32 | 42 | ||||||||||||||||
Total coronary stent systems | $ | 196 | $ | 217 | $ | 213 | $ | 236 | $ | 409 | $ | 453 | ||||||||||
On a GAAP basis, net income for the fourth quarter of 2010 was $236 million, or $0.15 per diluted share. These results included acquisition-, divestiture-, litigation- and restructuring-related net charges; discrete tax items; and amortization expense (after-tax) of $77 million, or $0.05 per diluted share, which consisted primarily of:
- $4 million ($5 million pre-tax) of acquisition-related charges, consisting of due diligence and other fees, an inventory step-up adjustment, and contingent consideration expense related to 2010 acquisitions;
- a $77 million ($104 million pre-tax) gain associated with the settlement of a litigation matter with Medinol, Ltd.;
- $23 million ($30 million pre-tax) of restructuring and restructuring-related net charges associated with the Company's 2010 Restructuring plan, Plant Network Optimization program and 2007 Restructuring plan;
- $9 million of discrete tax items related to certain tax positions taken in a prior period; and
- $116 million ($132 million pre-tax) of amortization expense.
Adjusted net income for the fourth quarter of 2010, excluding these net charges, was $313 million, or $0.20 per diluted share.
On a GAAP basis, net loss for the fourth quarter of 2009 was $1.075 billion, or $0.71 per share, and was driven primarily by charges related to the Company's settlement of patent disputes with Johnson & Johnson. Reported results included intangible asset impairment charges; acquisition-, divestiture-, litigation- and restructuring-related net charges; discrete tax items and amortization expense (after-tax) of $1.379 billion, or $0.91 per share. Adjusted net income for the fourth quarter of 2009, excluding these net charges, was $304 million, or $0.20 per share.
Full Year 2010
Net sales for the full year 2010 were $7.806 billion, as compared to net sales of $8.188 billion for the full year 2009, a decrease of 5 percent on both a reported and constant currency basis.
Worldwide CRM net sales for the full year - on a reported basis - were as follows:
