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FOR IMMEDIATE RELEASE

BOSTON SCIENTIFIC ANNOUNCES RESULTS FOR
FOURTH QUARTER AND FULL YEAR 2020

Marlborough, Mass. (February 3, 2021) -- Boston Scientific Corporation (NYSE: BSX) generated net sales of $2.708 billion during the fourth quarter of 2020. This represents a decline of (6.8) percent on a reported basis, (8.3) percent on an operational
1 basis and (8.0) percent on an organic2 basis, all compared to the prior year period. Included within organic results is a negative 370 basis point impact associated with the conversion of U.S. WATCHMAN™ customers to a consignment inventory model and transition to the next-generation WATCHMAN FLX™ Left Atrial Appendage Closure (LAAC) Device. The company reported GAAP net income available to common stockholders of $138 million or $0.10 per share (EPS), compared to GAAP net income of $3.996 billion or $2.83 per share a year ago and achieved adjusted EPS of $0.23 for the period, compared to $0.46 a year ago. In the fourth quarter of 2019, reported GAAP net income included a net income tax benefit of $4.102 billion or $2.90 per share related to an intra-entity asset transfer of intellectual property.

For the full year 2020, the company generated net sales of $9.913 billion. This represents a decline of (7.7) percent on a reported basis, (7.8) percent on an operational1 basis and (11.3) percent on an organic2 basis, all compared to the prior year period. Included within organic results is a negative 170 basis point impact associated with the WATCHMAN™ conversion. The company reported a GAAP net loss available to common stockholders of $(173) million or $(0.12) per share, compared to GAAP net income of $4.700 billion or $3.33 per share a year ago, and delivered full year adjusted EPS of $0.96, compared to $1.58 a year ago. Full year 2019 GAAP EPS included a net income tax benefit of $2.91 per share related to the intra-entity asset transfer of intellectual property discussed above.

“As we look to 2021 and beyond, we are well-positioned given the strength of our global team and our diversified portfolio,” said Mike Mahoney, chairman and chief executive officer, Boston Scientific. “I’m excited about our outlook for growth—from our category leadership positions to our innovative pipeline and commercial execution—and I am incredibly proud of how Boston Scientific delivered on our mission to transform lives amid the challenges of 2020.”

Fourth quarter financial results and recent developments:

Reported GAAP net income available to common stockholders of $0.10 per share and adjusted EPS of $0.23 per share. Included in adjusted EPS is:
a ($0.06) impact associated with the WATCHMAN™ conversion mentioned above, which is now substantially complete, and
an ($0.07) impact related to the voluntary recall of the LOTUS Edge™ Aortic Valve System and discontinuation of the LOTUS platform

Generated the following sales growth/(declines) in each reportable segment4, compared to the prior year period:
MedSurg: 1.5 percent reported, 0.1 percent operational and 1.1 percent organic
Rhythm and Neuro: (6.1) percent reported, (7.7) percent operational and organic
Cardiovascular: (12.0) percent reported, (13.5) percent operational and organic

Generated the following regional5 sales declines, compared to the prior year period:
U.S.: (9.2) percent reported and operational
EMEA (Europe, Middle East and Africa): (1.1) percent reported and (5.9) percent operational
APAC (Asia-Pacific): (1.1) percent reported and (5.6) percent operational
Emerging Markets3: (9.9) percent reported and (8.9) percent operational

Received U.S. Food and Drug Administration (FDA) approval for Vercise Genus™ family of Deep Brain Stimulation Systems, approved for MR conditional use in a magnetic resonance imaging (MRI) environment.

Received FDA approval for WaveWriter Alpha™ portfolio of Spinal Cord Stimulator Systems, offering expanded personalization based on patient needs to treat multiple areas of chronic pain.

Received FDA Breakthrough Device designation for the AGENT™ Drug-Coated Balloon (DCB),6 which is designed for percutaneous transluminal coronary angioplasty to treat coronary artery disease. Breakthrough Device designation provides patients more timely access to novel devices that may provide a substantial improvement over existing therapies.

Received FDA approval for the SYNERGY MEGATRON™ Bioabsorbable Polymer Stent, the only stent platform that is purpose built for use in large proximal vessels with the ability to expand to 6.0 mm in diameter.

Received FDA approval for the Ranger™ Drug-Coated Balloon, developed for the treatment of patients with peripheral artery disease in the superficial femoral artery and proximal popliteal artery. Positive 24-month data from the COMPARE trial was also presented at the Leipzig Interventional Course (LINC) congress, demonstrating non-inferiority of the low-dose paclitaxel-coated Ranger DCB (2.0 µg/mm2) compared to the higher dose IN.PACT™ DCB (Medtronic) balloon (3.5 µg/mm2).

Received approval for the Eluvia™ Drug-Eluting Vascular Stent System from China's Center for Medical Device Evaluation and initiated a full launch in the region.

Received FDA approval for the ORISE™ ProKnife, a cutting tool designed for endoluminal surgeries and organ-sparing alternatives to surgery for cancer removal and mortality disorders of the gastrointestinal tract.

Received Japanese Pharmaceuticals and Medical Devices Agency approval and Japanese National Health Insurance reimbursement approval for the WATCHMAN FLX™ Left Atrial Appendage Closure (LAAC) Device, with plans to launch later this year, and surpassed 150,000 cumulative WATCHMAN implants worldwide.

Announced the initiation of CHAMPION-AFa randomized head-to-head trial to study the safety and efficacy of the next-generation WATCHMAN FLX device vs. non-vitamin K antagonist oral
anticoagulants outcomes across a broad spectrum of patients with non-valvular atrial fibrillation, to evaluate the technology as a potential first-line therapy.

Received Class I designation for the EMBLEM™ Subcutaneous Implantable Defibrillator System in recently updated American Heart Association and American College of Cardiology guidelines on treating patients with hypertrophic cardiomyopathy.

Received approval from the FDA to begin the early feasibility study in the U.S. for the Millipede Transcatheter Annuloplasty Ring System, which will assess the safety and feasibility of the system in patients with functional mitral regurgitation.

Announced a definitive agreement to acquire Preventice Solutions, Inc., a privately-held company which offers a full portfolio of mobile cardiac health solutions and services, for a purchase price of $925 million, with up to an additional $300 million in a potential commercial milestone payment. Boston Scientific is currently an investor in Preventice and holds an equity stake of approximately 22 percent, which is expected to result in a net payment of approximately $720 million upon closing and a milestone payment of up to approximately $230 million.

Signed definitive agreement to divest BTG Specialty Pharmaceuticals business to Stark International Lux S.A.R.L. and SERB SAS, affiliates of SERB, for $800 million in cash.











1. Operational revenue growth excludes the impact of foreign currency fluctuations.
2. Organic net sales growth rates exclude the impact of foreign currency fluctuations and net sales from the recent acquisitions of Vertiflex, Inc. and BTG plc (BTG), each with no prior year comparable net sales. Organic net sales growth rates also exclude the impact of the divestiture of our global embolic microspheres portfolio, a transaction entered into in connection with obtaining the antitrust clearances required to complete the BTG transaction, as well as prior period net sales associated with our intrauterine health franchise, which we divested in Q2 2020.
3. We define Emerging Markets as the 20 countries that we believe have strong growth potential based on their economic conditions, healthcare sectors and our global capabilities.
4. We have three historical reportable segments comprised of Medical Surgical (MedSurg), Rhythm and Neuro, and Cardiovascular, which represent an aggregation of our operating segments that generate revenues from the sale of medical devices (Medical Devices). As part of our acquisition of BTG on August 19, 2019, we acquired an Interventional Medicine business, which is now included in our Peripheral Interventions operating segment's revenues from the date of acquisition.
5. As part of our acquisition of BTG on August 19, 2019, we acquired a specialty pharmaceuticals business (Specialty Pharmaceuticals). Subsequent to acquisition, Specialty Pharmaceuticals is now a stand-alone operating segment presented alongside our Medical Device reportable segments. Specialty Pharmaceuticals net sales are substantially U.S. based. Our chief operating decision maker (CODM) reviews financial information of our globally managed Specialty Pharmaceuticals operating segment at the worldwide level without further disaggregation into regional results. As such, Specialty Pharmaceuticals net sales are presented globally, and our Medical Devices reportable segments regional net sales results do not include Specialty Pharmaceuticals. In Q4 2020, we signed a definitive agreement to sell Specialty Pharmaceuticals. The sale is expected to close in the first half of 2021, pending customary closing conditions.
6. Agent is an investigational device. Limited by Federal law for investigational use only. Not available for sale.
7. Synergy Megatron indicated for use in coronary arteries 3.5mm to 5.0mm in diameter.
8. Millipede is an investigational device. Limited by Federal law for investigational use only. Not available for sale.


Net sales for the fourth quarter by business and region:
Change
Three Months Ended December 31,Reported BasisLess: Impact of Foreign Currency FluctuationsOperational BasisLess: Impact of Recent Acquisitions / DivestituresOrganic Basis
(in millions)20202019
   Endoscopy$515 $499 3.4 %1.9 %1.5 %0.0 %1.5 %
   Urology and Pelvic Health376 379 (0.8)%1.0 %(1.8)%(2.3)%0.6 %
MedSurg892 878 1.5 %1.5 %0.1 %(1.0)%1.1 %
   Cardiac Rhythm Management451 473 (4.6)%1.8 %(6.4)%0.0 %(6.4)%
   Electrophysiology85 84 1.1 %2.8 %(1.8)%0.0 %(1.8)%
   Neuromodulation232 261 (11.2)%0.8 %(12.0)%0.0 %(12.0)%
Rhythm and Neuro767 817 (6.1)%1.6 %(7.7)%0.0 %(7.7)%
   Interventional Cardiology585 748 (21.9)%1.5 %(23.4)%0.0 %(23.4)%
   Peripheral Interventions429 403 6.5 %1.7 %4.8 %0.0 %4.8 %
Cardiovascular1,014 1,151 (12.0)%1.6 %(13.5)%0.0 %(13.5)%
Medical Devices4
2,673 2,847 (6.1)%1.5 %(7.7)%(0.3)%(7.4)%
Specialty Pharmaceuticals5
36 58 (38.5)%0.3 %(38.8)%0.0 %(38.8)%
Net Sales$2,708 $2,905 (6.8)%1.5 %(8.3)%(0.3)%(8.0)%

Change
Three Months Ended December 31,Reported BasisLess: Impact of Foreign Currency FluctuationsOperational
Basis
(in millions)20202019
U.S.$1,502 $1,654 (9.2)%0.0 %(9.2)%
EMEA590 597 (1.1)%4.8 %(5.9)%
APAC489 495 (1.1)%4.6 %(5.6)%
Latin America and Canada91 101 (10.5)%(7.2)%(3.2)%
Medical Devices4
2,673 2,847 (6.1)%1.5 %(7.7)%
Specialty Pharmaceuticals5
36 58 (38.5)%0.3 %(38.8)%
Net Sales$2,708 $2,905 (6.8)%1.5 %(8.3)%
Emerging Markets3
$293 $325 (9.9)%(1.0)%(8.9)%
Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely.
Net sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of recent aforementioned acquisitions / divestitures are not prepared in accordance with U.S. GAAP.




Net sales for the full year by business and region:
Change
Year Ended December 31,Reported BasisLess: Impact of Foreign Currency FluctuationsOperational BasisLess: Impact of Recent Acquisitions / DivestituresOrganic Basis
(in millions)20202019
   Endoscopy$1,780 $1,894 (6.0)%0.3 %(6.3)%0.0 %(6.3)%
   Urology and Pelvic Health1,286 1,413 (9.0)%0.0 %(9.0)%(1.7)%(7.3)%
MedSurg3,066 3,307 (7.3)%0.2 %(7.5)%(0.7)%(6.7)%
   Cardiac Rhythm Management1,704 1,939 (12.1)%0.2 %(12.4)%0.0 %(12.4)%
   Electrophysiology287 329 (12.8)%0.8 %(13.5)%0.0 %(13.5)%
   Neuromodulation761 873 (12.8)%0.1 %(13.0)%2.8 %(15.7)%
Rhythm and Neuro2,752 3,140 (12.4)%0.3 %(12.7)%0.8 %(13.4)%
   Interventional Cardiology2,299 2,816 (18.4)%(0.1)%(18.2)%0.0 %(18.2)%
   Peripheral Interventions1,577 1,392 13.3 %0.2 %13.1 %15.6 %(2.5)%
Cardiovascular3,876 4,208 (7.9)%0.0 %(7.9)%5.2 %(13.1)%
Medical Devices4
9,694 10,654 (9.0)%0.1 %(9.1)%2.1 %(11.2)%
Specialty Pharmaceuticals5
219 81 n/an/an/an/an/a
Net Sales$9,913 $10,735 (7.7)%0.1 %(7.8)%3.5 %(11.3)%

Change
Year Ended
December 31,
Reported BasisLess: Impact of Foreign Currency FluctuationsOperational
Basis
(in millions)20202019
U.S.$5,508 $6,097 (9.7)%0.0 %(9.7)%
EMEA2,097 2,264 (7.4)%1.0 %(8.4)%
APAC1,781 1,898 (6.2)%1.0 %(7.1)%
Latin America and Canada307 395 (22.2)%(7.0)%(15.2)%
Medical Devices4
9,694 10,654 (9.0)%0.1 %(9.1)%
Specialty Pharmaceuticals5
219 81 n/an/an/a
Net Sales$9,913 $10,735 (7.7)%0.1 %(7.8)%
Emerging Markets3
$1,093 $1,252 (12.7)%(3.5)%(9.2)%
Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely.
Net sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of recent aforementioned acquisitions / divestitures are not prepared in accordance with U.S. GAAP.










Guidance for First Quarter and Full Year 2021

The company estimates revenue growth for the first quarter of 2021, versus the prior year period, to be in a range of approximately 0 to 6 percent on a reported basis and a growth range of approximately (3) to 3 percent on an organic basis. First quarter organic guidance excludes the impact of foreign currency fluctuations and the divestiture of our intrauterine health franchise, which we divested in Q2 2020, and includes net sales of the Specialty Pharmaceuticals business, assuming the previously announced divestiture closes on April 1, 2021. First quarter guidance excludes the previously announced acquisition of Preventice Solutions, Inc. which is projected to close by mid-2021, subject to customary closing conditions. The company estimates earnings on a GAAP basis in a range of $0.05 to $0.11 per share and estimates adjusted earnings, excluding certain charges (credits) in a range of $0.28 to $0.34 per share.

The company estimates revenue growth for the full year 2021, versus the prior year period, to be in a range of approximately 13 to 19 percent on a reported basis and a growth range of approximately 12 to 18 percent on an organic basis. Full year organic guidance excludes the impact of foreign currency fluctuations and the divestiture of our intrauterine health franchise, which we divested in Q2 2020, and includes net sales of the Specialty Pharmaceuticals business through the first quarter of 2021 assuming the previously announced divestiture closes on April 1, 2021. Full year guidance excludes the previously announced acquisition of Preventice Solutions, Inc. which is projected to close by mid-2021, subject to customary closing conditions. The company estimates income on a GAAP basis in a range of $0.72 to $0.82 per share and estimates adjusted earnings, excluding certain charges (credits) in a range of $1.50 to $1.60 per share.

Conference Call Information

Boston Scientific management will be discussing these results with analysts on a conference call today at 8:00 a.m. ET. 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.

About Boston Scientific
Boston Scientific transforms lives through innovative medical solutions that improve the health of patients around the world.  As a global medical technology leader for more than 40 years, we advance science for life by providing a broad range of high performance solutions that address unmet patient needs and reduce the cost of healthcare. For more information, visit www.bostonscientific.com and connect on Twitter and Facebook.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend," and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance.  These forward-looking statements include, among other things, statements regarding our expected net sales, GAAP, operational and organic revenue growth rates, GAAP earnings and adjusted earnings for the first quarter and full year 2021, our financial performance, our business plans and product performance, and the impact of the COVID-19 outbreak on the company's results of operations. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or
implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.

Factors that may cause such differences include, among other things: future economic, political, competitive, reimbursement and regulatory conditions; new product introductions; demographic trends; intellectual property; litigation; financial market conditions; and future business decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control.  For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item IA - Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in our expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained in this press release.

Note: Amounts reported in millions within this press release are computed based on the amounts in thousands. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in dollars.

Use of Non-GAAP Financial Information
A reconciliation of the company's non-GAAP financial measures to the corresponding GAAP measures, and an explanation of the company's use of these non-GAAP financial measures, is included in the exhibits attached to this press release.
CONTACT:
Media:Kate HaranisInvestors:Susie Lisa, CFA
508-683-6585 (office)508-683-5565 (office)
Media RelationsInvestor Relations
Boston Scientific CorporationBoston Scientific Corporation
kate.haranis@bsci.com
BSXInvestorRelations@bsci.com




The following information was filed by Boston Scientific Corp (BSX) on Wednesday, February 3, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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