EXHIBIT 99.1
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NEWS Boston
FOR IMMEDIATE RELEASE Scientific
Boston Scientific Corporation
One Boston Scientific Place
Natick, MA 01760-1537
508.650.8000
www.bostonscientific.com
BOSTON SCIENTIFIC PROVIDES MID-YEAR UPDATE
COMPANY POSITIONS TAXUS FOR WORLDWIDE STENT LEADERSHIP
Natick, MA (July 3, 2003) - Boston Scientific Corporation (NYSE: BSX) today
announced preliminary, unaudited financial results for the second quarter, as
well as estimates for net sales and earnings per share for the third quarter,
the fourth quarter and the year. The Company also reported on the international
introduction of its TAXUS(TM) Express2(TM) paclitaxel-eluting coronary stent
system and the measures it is taking to support a successful U.S. launch.
PRELIMINARY RESULTS FOR SECOND QUARTER
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Preliminary net sales for the second quarter were $852 million, as compared to
$708 million for the second quarter of 2002, an increase of 20 percent.
Excluding the favorable impact of foreign currency fluctuations, net sales were
$813 million, an increase of 15 percent.
Excluding net special charges, the Company currently estimates earnings per
share (diluted) for the second quarter of 2003 of between $0.29 and $0.30, as
compared to $0.23 per share for the second quarter of 2002, an increase of
between 26 and 30 percent.
The preliminary estimated net special charges for the quarter of $11 million
(after-tax), or approximately $0.03 per share, include purchased research and
development related to acquisitions.
OUTLOOK FOR SECOND HALF AND FULL YEAR
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The Company estimates net sales in the third quarter of between $810 million and
$840 million and earnings per share (diluted) of between $0.24 and $0.28,
excluding net special charges.
The Company estimates net sales in the fourth quarter of between $860 million
and $920 million and earnings per share (diluted) of between $0.28 and $0.35,
excluding net special charges.
For the full year, the Company estimates net sales of between $3.329 billion and
$3.419 billion and earnings per share (diluted) of between $1.09 and $1.21,
excluding net special charges.
Net special charges for the third and fourth quarters may include approximately
$11 million (after-tax), or approximately $0.03 per share, in purchased research
and development related to acquisitions and other charges not presently
determinable.
TAXUS LAUNCH UPDATE
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The Company announced that its TAXUS Express paclitaxel-eluting coronary stent
system has been well received in Europe and other international markets since it
was introduced earlier this year. Based on internal market data, the Company
estimates it has achieved a 51 percent drug-eluting stent unit market share in
Europe, and a 67 percent share in other international markets where it has been
launched. Estimated market penetration rates for drug-eluting stents in those
markets are 14 and 17 percent, respectively, and the rates are growing steadily.
The Company also announced that the TAXUS system has received regulatory
approval in Australia and Korea, and that it plans to launch the product
immediately in those countries.
"TAXUS represents an enormous opportunity for Boston Scientific," said Jim
Tobin, President and Chief Executive Officer of Boston Scientific. "We are
investing what is required to be prepared for U.S. leadership, including the
addition of approximately 1200 employees this year who will work on TAXUS, the
vast majority in manufacturing. The early successes we've experienced where we
have launched TAXUS provide us growing confidence in the potential for TAXUS to
become the leading drug-eluting stent in the world in 2004."
Boston Scientific is a developer, manufacturer and marketer of medical devices
whose products are used in a broad range of interventional medical specialties.
For more information, please visit: www.bostonscientific.com.
The Company discloses non-GAAP or pro forma measures that exclude certain
charges. Non-GAAP measures may exclude such items as charges related to
purchased in-process research and development and certain litigation. Management
uses these measures to establish operational goals, and believes that non-GAAP
measures may assist investors in analyzing the underlying trends in the
Company's business over time. Investors should consider these non-GAAP measures
in addition to, not as a substitute for, or as superior to, financial reporting
measures prepared in accordance with GAAP. Guidance is
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provided on a pro forma basis due to the difficulties associated with
forecasting and quantifying the amounts to be included in GAAP measures.
This press release contains forward-looking statements. The Company wishes to
caution the reader of this press release that actual results may differ from
those discussed in the forward-looking statements and may be adversely affected
by, among other things, risks associated with new product development and
introduction, clinical trials, regulatory approvals, competitive offerings,
operational expansion, the Company's overall business strategy and other factors
described in the Company's filings with the Securities and Exchange Commission.
CONTACT: Milan Kofol
508-650-8569
Investor Relations
Boston Scientific Corporation
Paul Donovan
508-650-8541
Media Relations
Boston Scientific Corporation
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