On April 29, 2020 Boston Scientific Corporation (NYSE: BSX) reported that sales of $2.543 billion during the first quarter of 2020 (Press release, Boston Scientific, APR 29, 2020, View Source [SID1234556794]). This represents growth of 2.0 percent on a reported basis, 3.2 percent on an operational1 basis and a decline of 2.9 percent on an organic2 basis, all compared to the prior year period. The company reported GAAP earnings of $11 million or $0.01 per share (EPS), compared to GAAP earnings of $424 million or $0.30 per share a year ago, and achieved adjusted earnings per share of $0.28 for the period, compared to $0.35 a year ago.
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"During this global pandemic, we are grounded in the urgency of providing important medical products and therapies to those who need them–in particular, many patients with acute needs," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "We continue to balance short-term adjustments to our plans while strengthening our long-term strategy to serve our customers and deliver high performance. I’m confident in our ability to bring meaningful, innovative products to market, and grateful for our team’s winning spirit as we navigate the impact of these challenges."
First quarter financial results and recent developments:
Reported GAAP earnings of $0.01 per share. Achieved adjusted earnings per share of $0.28. On March 30, 2020, the company withdrew its Q1 2020 sales and EPS guidance, originally provided on February 5, 2020.
Generated first quarter sales growth/(decline) in our reportable segments4, compared to the prior year period:
MedSurg: 1.1 percent reported, 2.1 percent operational and organic
Rhythm and Neuro: (7.2) percent reported, (6.2) percent operational and (8.6) percent organic
Cardiovascular: 5.5 percent reported, 7.0 percent operational and (2.5) percent organic
Generated first quarter regional5 sales growth/(decline), compared to the prior year period:
U.S.: 3.5 percent reported and operational
EMEA (Europe, Middle East and Africa): (1.6) percent reported and 1.3 percent operational
APAC (Asia-Pacific): (6.4) percent reported and (4.8) percent operational
Emerging Markets3: (10.1) percent reported and (5.4) percent operational
Received CE Mark for the ACURATE neo2 Aortic Valve System, a next-generation transcatheter aortic valve implantation (TAVI) technology to treat patients with severe aortic stenosis that builds on the clinical performance of the original ACURATE neo platform.
Received FDA approval for the DIRECTSENSE RF Technology, the only tool available to monitor the effect of radiofrequency (RF) energy delivery via changes in local impedance around the tip of a catheter during cardiac ablation procedures.
Received CE Mark for the SpyGlass Discover Digital Catheter, a novel single-use surgical endoscope, for use in diagnostic and therapeutic applications during pancreaticobiliary surgery and percutaneous procedures. SpyGlass Discover enables physician access to the pancreaticobiliary system, allowing them to take a single-stage approach to treating patients with bile duct stones.
Received an expanded indication from the FDA for the VENOUS WALLSTENT Self-Expanding Stent, which can now be used to treat patients suffering from blockages in the iliofemoral veins. Iliofemoral deep vein thrombosis (DVT) represents approximately one-quarter of all lower extremity DVT cases.6
Announced positive three-year data for the WATCHMAN Left Atrial Appendage Closure Device — the largest real-world analysis of the device to-date with 38,000 patients from the National Cardiovascular Data Registry (NCDR)-LAAO Registry — at the virtual meeting of the American College of Cardiology/World Congress of Cardiology and continue to demonstrate the device is safe and effective for a broad population of patients with non-valvular atrial fibrillation.
Published positive five-year clinical data in The Journal of Urology confirming that Rezûm Water Vapor Therapy is an effective, long-term treatment for men with benign prostatic hyperplasia (BPH) and offers sustained improvement of lower urinary tract symptoms and quality of life for patients while preserving sexual function. Only 4.4 percent of patients required surgical retreatment through the five years of the clinical trial, demonstrating the therapy’s durability.
Increased available liquidity to approximately $2.6 billion by entering into a new $1.25 billion term loan agreement to refinance borrowings under the company’s revolving credit agreement, and enhanced financial flexibility by amending financial covenants in outstanding credit arrangements.
Signed a virtual energy power purchase agreement (VPPA) that represents another key step the company has taken to achieve its goal of global carbon neutral manufacturing and distribution by 2030. The agreement will address the electricity load for the company’s U.S. operations, which represents 45 percent of its total carbon footprint.
Launched efforts to help address the global impact of COVID-19, including collaborations with the University of Minnesota and others to develop the Coventor, an emergency resuscitator granted Emergency Use Authorization by the FDA, and a reusable personal respirator, as well as the production of face shields for frontline healthcare workers.
Reached a definitive agreement to divest the company’s commercial Intrauterine Health franchise — comprised of the Symphion Tissue Removal System, the Resectr Tissue Resection Device and the Genesys HTA System — to Minerva Surgical. The transaction is expected to close in the coming days, subject to customary closing conditions.
Guidance for Remainder of 2020
On March 30, 2020, the company withdrew its sales and EPS guidance for the full year 2020, originally provided on February 5, 2020. Due to the uncertain scope and duration of the COVID-19 pandemic, timing of global recovery and economic normalization, the company is unable to estimate the overall impacts on its operations and financial results for the remainder of 2020.
Conference Call Information
Boston Scientific management will be discussing these results with analysts on a conference call today at 8:00 a.m. EDT. The company will webcast the call to 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 approximately one year on the Boston Scientific website.