On January 31, 2024 Boston Scientific Corporation reported net sales of $3.725 billion during the fourth quarter of 2023, growing 14.9 percent on a reported basis, 14.5 percent on an operational1 basis and 13.6 percent on an organic2 basis, all compared to the prior year period (Press release, Boston Scientific, JAN 31, 2024, View Source [SID1234642333]). The company reported GAAP net income attributable to Boston Scientific common stockholders of $504 million or $0.34 per share (EPS), compared to $126 million or $0.09 per share a year ago and achieved adjusted3 EPS of $0.55 for the period, compared to $0.45 a year ago.
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For the full year 2023, the company generated net sales of $14.240 billion, growing 12.3 percent on a reported basis, 13.1 percent on an operational1 basis and 12.3 percent on an organic2 basis. The company reported GAAP net income attributable to Boston Scientific common stockholders of $1.570 billion or $1.07 per share, compared to $642 million or $0.45 per share a year ago, and delivered full year adjusted3 EPS of $2.05, compared to $1.71 a year ago.
"I am grateful to our global team, and proud of our exceptional results in 2023," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "We are excited about our future and long-range plans as we deliver on our mission to transform patient lives."
Fourth quarter financial results and recent developments:
Reported net sales of $3.725 billion, representing an increase of 14.9 percent on a reported basis, compared to the company’s guidance range of 9 to 11 percent; 14.5 percent on an operational basis; and 13.6 percent on an organic basis, compared to the company’s guidance range of 8 to 10 percent, all compared to the prior year period.
Reported GAAP net income attributable to Boston Scientific common stockholders of $0.34 per share, compared to the company’s guidance range of $0.26 to $0.30 per share, and achieved adjusted EPS of $0.55 per share, compared to the guidance range of $0.49 to $0.52 per share.
Achieved the following net sales growth in each reportable segment, compared to the prior year period:
MedSurg: 11.1 percent reported, 10.5 percent operational and 8.9 percent organic
Cardiovascular: 13.9 percent reported, 13.8 percent operational and 13.3 percent organic
Achieved the following net sales growth in each region, compared to the prior year period:
United States (U.S.): 11.4 percent reported and operational
Europe, Middle East and Africa (EMEA): 14.0 percent reported and 11.6 percent operational
Asia-Pacific (APAC): 14.8 percent reported and 17.0 percent operational
Latin America and Canada (LACA): 20.8 percent reported and 14.6 percent operational
Emerging Markets4: 16.3 percent reported and 18.7 percent operational
Received U.S. Food and Drug Administration (FDA) approval of the FARAPULSE Pulsed Field Ablation (PFA) System for the isolation of pulmonary veins in the treatment of drug-resistant, recurrent, symptomatic, paroxysmal (i.e., intermittent) atrial fibrillation (AF).
Commenced enrollment of the AVANT GUARD clinical trial to evaluate the safety and effectiveness of the FARAPULSE PFA System as a first-line treatment for persistent AF compared to anti-arrhythmic drug therapy.
Welcomed the presentation of data from the MANIFEST-17K registry of more than 17,000 patients treated with the FARAPULSE PFA System that reinforce the real-world safety profile of the system.
Enrollment commenced in the LAAOS-4 global research trial, which includes both the WATCHMAN FLX Left Atrial Appendage Closure (LAAC) Device and WATCHMAN FLX Pro LAAC Device and explores if patients with AF at highest risk for stroke benefit from a combined LAAC and oral anticoagulation therapy.
Received FDA approval for the TENACIO Pump, a new pump component for the AMS 700 Inflatable Penile Prostheses, a treatment option for patients with erectile dysfunction.
Completed the acquisition of Relievant Medsystems, Inc., a privately held medical technology company that has developed and commercialized the only U.S. FDA-cleared system, the Intracept Intraosseous Nerve Ablation System, for vertebrogenic pain.
Announced agreement to acquire Axonics, Inc., (Nasdaq: AXNX) a publicly traded medical technology company that offers differentiated devices to treat urinary and bowel dysfunction, subject to customary closing conditions.
1 Operational net sales growth excludes the impact of foreign currency fluctuations.
2 Organic net sales growth excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales.
3 Adjusted EPS excludes the impacts of certain charges (credits) which may include amortization expense, goodwill and intangible asset impairment charges, acquisition/divestiture-related net charges (credits), investment portfolio gains and losses, restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits), European Union Medical Device Regulation (EU MDR) implementation costs, debt extinguishment charges, deferred tax expenses (benefits) and discrete tax items.
4 Periodically, we assess our list of Emerging Markets countries, and effective January 1, 2023, modified our list to include all countries except the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada. We have revised prior year amounts to conform to the current year’s presentation.
Fourth quarter net sales by business and region:
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Increase/(Decrease)
Three Months Ended
December 31,
Reported
Basis
Impact of
Foreign
Currency
Fluctuations
Operational
Basis
Impact of
Recent
Acquisitions
/ Divestitures
Organic
Basis
(in millions)
2023
2022
Endoscopy
$ 645
$ 571
12.9 %
(0.7) %
12.2 %
(1.4) %
10.8 %
Urology
527
477
10.5 %
(0.5) %
9.9 %
— %
9.9 %
Neuromodulation
269
249
8.0 %
(0.5) %
7.5 %
(4.9) %
2.6 %
MedSurg
1,441
1,297
11.1 %
(0.6) %
10.5 %
(1.6) %
8.9 %
Cardiology
1,751
1,529
14.5 %
(0.3) %
14.2 %
— %
14.2 %
Peripheral Interventions
533
476
12.1 %
0.1 %
12.2 %
(2.1) %
10.2 %
Cardiovascular
2,285
2,005
13.9 %
(0.2) %
13.8 %
(0.5) %
13.3 %
3,725
3,302
12.8 %
(0.4) %
12.5 %
(0.9) %
11.6 %
Other5
—
(60)
(100.0) %
— %
(100.0) %
— %
(100.0) %
Net Sales
$ 3,725
$ 3,242
14.9 %
(0.4) %
14.5 %
(0.9) %
13.6 %
Increase/(Decrease)
Three Months Ended
December 31,
Reported
Basis
Impact of
Foreign
Currency
Fluctuations
Operational
Basis
(in millions)
2023
2022
U.S.
$ 2,213
$ 1,986
11.4 %
— %
11.4 %
EMEA
749
657
14.0 %
(2.4) %
11.6 %
APAC
616
536
14.8 %
2.2 %
17.0 %
LACA
148
122
20.8 %
(6.2) %
14.6 %
3,725
3,302
12.8 %
(0.4) %
12.5 %
Other5
—
(60)
(100.0) %
— %
(100.0) %
Net Sales
$ 3,725
$ 3,242
14.9 %
(0.4) %
14.5 %
Emerging Markets4
$ 595
$ 511
16.3 %
2.4 %
18.7 %
5 In 2022, reflects unplanned reserves established in connection with the activation of the Italian government payback provision, aimed at rationalizing public spending and requiring medical device companies to pay back a portion of spend exceeding allocated health care budgets. In 2023, these sales reserves were allocated to reportable segments.
Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely.