Boston Scientific Corporation (BSX) settled its $296 million lawsuit with the U.S. Department of Justice (DOJ) related to product advisories issued by its Guidant subsidiary in 2005. The litigation pertained to alleged violations of the Food, Drug, and Cosmetic Act by Guidant. The allegations were reported prior to Boston’s acquisition of Guidant in 2006.
Boston has recorded the litigation expense in its third quarter of fiscal 2009 results and updated its income statement accordingly. The expense has lowered the company’s GAAP earnings per share by 19 cents into a loss per share of 6 cents in the third quarter of 2009. Adjusted figures remained unaffected by this charge.
Boston has also lowered its full fiscal 2009 GAAP earnings per share guidance to a range of 23 to 28 cents, compared to its prior guidance of 43 to 48 cents. The company’s adjusted earnings per share guidance remained unchanged at 75 to 79 cents.
Boston recently released its third quarter 2009 results. Adjusted earnings per share were 19 cents, beating the Zacks Consensus Estimate by 5 cents and the year-ago earnings by 3 cents. Net sales in the quarter were $2.0 billion, increasing approximately 2% year over year.
Boston Scientific is a manufacturer of medical devices and products used in a broad range of interventional medical specialties. The company faces significant competition across its product portfolio. The primary competitors include Johnson & Johnson (JNJ), Medtronic Inc. (MDT), Abbott Laboratories (ABT) and St. Jude Medical Inc. (STJ).
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