Boston Scientific net loss widens in Q4, despite improved U.S. stent sales
Boston Scientific has reported its financial results for the 2008 fourth fiscal quarter and full year, which ended Dec. 31, 2008.
For the 2008 fourth quarter, the medical device maker reported a net loss of $2.43 billion, compared to a net loss of $458 million in the year-prior quarter. For the year, the company endured a net loss of $2.07 billion, compared to a net loss of $495 million for 2007.
The Natick, Mass.-based attributed its losses with the changes in cardiac rhythm management (CRM) market demand since its acquisition of Guidant, coupled with the recent disruptions in the credit and equity markets, which have resulted a $2.7 billion write-down of goodwill associated with the acquisition. The amount of the charge is subject to finalization during the first quarter of 2009.
"This write-down in no way diminishes our confidence in our CRM business," said Jim Tobin, president and CEO of Boston Scientific.
The company reported that its drug-eluting stent (DES) sales for the fourth quarter were $231 million in the U.S., compared to $224 for the fourth quarter 2007. However, they reported a dip in its international DES sales, as the fourth quarter of 2008 reaped $198 million, compared to $211 million for the year-ago quarter.
Boston Scientific reported similar trends for the CRM unit, which includes the ICDs and pacemakers. In the fourth quarter of 2008, the company reported net sales for CRM of $383 million in the U.S., compared to $347 in the U.S. in the prior-year quarter. Similar to stents sales, the international CRM sales dipped with $188 million in international CRM sales for the fourth quarter of 2008, compared to $197 million in the fourth quarter of 2007.
For the 2008 fourth quarter, the medical device maker reported a net loss of $2.43 billion, compared to a net loss of $458 million in the year-prior quarter. For the year, the company endured a net loss of $2.07 billion, compared to a net loss of $495 million for 2007.
The Natick, Mass.-based attributed its losses with the changes in cardiac rhythm management (CRM) market demand since its acquisition of Guidant, coupled with the recent disruptions in the credit and equity markets, which have resulted a $2.7 billion write-down of goodwill associated with the acquisition. The amount of the charge is subject to finalization during the first quarter of 2009.
"This write-down in no way diminishes our confidence in our CRM business," said Jim Tobin, president and CEO of Boston Scientific.
The company reported that its drug-eluting stent (DES) sales for the fourth quarter were $231 million in the U.S., compared to $224 for the fourth quarter 2007. However, they reported a dip in its international DES sales, as the fourth quarter of 2008 reaped $198 million, compared to $211 million for the year-ago quarter.
Boston Scientific reported similar trends for the CRM unit, which includes the ICDs and pacemakers. In the fourth quarter of 2008, the company reported net sales for CRM of $383 million in the U.S., compared to $347 in the U.S. in the prior-year quarter. Similar to stents sales, the international CRM sales dipped with $188 million in international CRM sales for the fourth quarter of 2008, compared to $197 million in the fourth quarter of 2007.