Boston Scientific Falls Short of Forecasts, Misses Q1 Earnings by a Penny

MARLBOROUGH, Mass., April 27, 2017 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) generated sales of $2.160 billion during the first quarter ended March 31, 2017. This represents growth of 10 percent compared to the prior year period on a reported and operational basis (calculated on a constant currency basis). The company reported GAAP earnings of $290 million or $0.21 per share (EPS), compared to GAAP earnings of $202 million or $0.15 a year ago and achieved adjusted earnings per share of $0.29 for the period, compared to $0.28 a year ago.

“We are pleased with our performance in the first quarter as we delivered excellent growth across our various businesses and geographies,” said Mike Mahoney, chairman and chief executive officer, Boston Scientific. “At the same time, we are investing in innovation that will strengthen our category leadership strategy while aiming to deliver sustainable double digit adjusted earnings per share growth.”

First quarter financial results and recent developments:

• Reported first quarter sales of $2.160 billion, compared to the company’s guidance range for the quarter of $2.050 to $2.100 billion, representing an increase of 10 percent on a reported and operational basis, all compared to the prior year period.

• Grew organic revenue 9 percent in the first quarter over the prior year period. Organic revenue growth excludes the impact of changes in foreign currency exchange rates and sales from the acquisition of EndoChoice Holdings, Inc. (EndoChoice).

• Reported GAAP earnings of $0.21 per share compared to the company’s guidance range of $0.18 to $0.21 per share and delivered adjusted earnings per share of $0.29 compared to the guidance range of $0.29 to $0.31 per share. These results include charges associated with the February voluntary removal of Lotus Valve devices¹ from global commercial and clinical sites.

• Achieved first quarter revenue growth in all segments, all compared to the prior year period:
• MedSurg: 15 percent reported and operational, 12 percent organic
• Cardiovascular: 8 percent reported, operational and organic
• Rhythm Management: 7 percent reported, 8 percent operational and organic

• Delivered strong regional revenue growth, all compared to the prior year period:
• U.S.: 13 percent reported and operational, 11 percent organic
• Europe: 2 percent reported, 7 percent operational and organic
• AMEA (Asia-Pacific, Middle East and Africa): 9 percent reported, 8 percent operational and organic
• Emerging markets:² 12 percent reported, operational and organic

• Entered into a definitive agreement to acquire Symetis SA, a privately-held Swiss structural heart company focused on minimally-invasive transcatheter aortic valve implantation (TAVI) devices, for $435 million in cash, to provide interventional cardiologists and cardiac surgeons with multiple TAVI offerings for varying patient pathologies and anatomy.

• Announced that the National Institute for Health and Care Excellence (NICE) recommended the use of Boston Scientific cardiac resynchronization therapy defibrillators (CRT-D) with EnduraLife Battery Technology for treating patients with heart failure and noted the extended battery life was likely to reduce the number of avoidable replacement procedures and could offer £6 million in savings to the National Health System of England in the first five years.

• Received CE Mark for and launched the RESONATE family of CRT-Ds³ in Europe, which provides physicians with new devices for treating heart failure patients featuring SmartCRT technology and EnduraLife Battery Technology.

• Presented results from the EVOLVE II three-year clinical trial at the American College of Cardiology Annual Scientific Sessions highlighting the excellent safety performance of the SYNERGY Bioabsorbable Polymer Stent, notably an exceptionally low stent thrombosis (ST) rate (0.2%) beyond the first 24 hours of device implantation until three years after the procedure.

• Completed enrollment of 465 patients in IMPERIAL, a head-to-head trial comparing the Eluvia Drug-Eluting Vascular Stent⁴ to the Zilver PTX Drug-Coated Stent (Cook Medical); data will be used to support regulatory submission in the U.S.

• Achieved two clinical milestones for the Ranger Paclitaxel-Coated PTA Balloon Catheter:⁴ presented 12-month results at the Charing Cross Symposium that demonstrated a high rate of primary patency and freedom from target lesion revascularization and commenced enrollment of the RANGER II SFA study, which is designed to support regulatory submissions in the U.S. and Japan.

• Began patient enrollment in two clinical trials examining the WATCHMAN Left Atrial Appendage Closure (LAAC) Device: ASAP TOO, a study evaluating the use of the device in warfarin-ineligible patients, which could lead to expanded labeling in the U.S. and SALUTE, a trial specifically designed to pursue regulatory approval in Japan.

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