lion, up 1.7 percent compared with $8.05 billion during 2008. Full-year net losses were
$1.03 billion, or 68 cents per share, compared with $2.04 billion, or $1.36 per share, during the prior year. When adjusted for various expenses and a hefty $1.77 billion price tag
for legal bills including a legal settlement with Johnson & Johnson (J&J) and yet another
$716 million settlement with J&J subsidiary Cordis Corp., net income was $1.18 billion,
or 78 cents per share.
The cardiac rhythm management (CRM) and stents divisions both posted sales increases last year, with CRM up 5 percent to $2.56 billion and stent sales up 1.5 percent
to $1.88 billion. The company said increased CRM sales (which have posted 10 straight
quarters of growth) were due to strong sales of the Cognis cardiac resynchronization
therapy defibrillator (CRT-D) and the Teligen implantable cardioverter defibrillator (ICD)
systems launched in the United States and Europe in 2008 and Japan in 2009. Growing
adoption of the Altrua family of pacemaker systems, launched in 2008, also contributed
to the bottom line success of the year. On the stent side, officials boasted having the
widest array of stent sizes in a worldwide market the company estimates is worth $4 billion (for drug-eluting stents).
Worldwide net sales from the company’s Endoscopy business grew $63 million, or
7 percent, achieving net sales of $1 billion in 2009, which the company said was due
to the continued success of its biliary and hemostasis franchises. Sales from the Urol-ogy/Women’s Health business grew $25 million, or 6 percent. Neuromodulation sales
also increased—by $40 million, or 17 percent, to $285 million. Officials said growth
was due to the Precision Spinal Cord Stimulation system. Net sales from the Neurovascular business decreased $12 million, or 3 percent, to $348 million, but is expected to benefit from product launches this year. International net sales accounted
for approximately 43 percent of net sales in 2009. International sales increased 8 percent for the year.
Throughout the year, Boston Scientific released or received regulatory OK for a variety of new devices. In fact, for 2009, 42 percent of revenue came from new products. The
company invests $1 billion annually in research and development efforts.
At the beginning of the year, the company’s Taxus Liberte Paclitaxel-eluting coronary
stent system was approved and granted reimbursement by Japanese officials. That’s a
good market for the company, as approximately 1,300 medical centers perform cardiac
catheterization in Japan. The number of coronary stents implanted annually in the country is estimated at 200,000.
In March the company launched its iCross coronary imaging catheter, a product designed to improve the deliverability of its iLab intravascular ultrasound (IVUS) imaging
system. IVUS technology enables physicians to see detailed images inside the heart and
In May, the U.S. Food and Drug Administration (FDA) approved the Taxus Liberte
Atom Paclitaxel-eluting coronary stent system for treating vessels as small as 2.25 mm in
diameter. FDA approval followed in July for the Taxus Liberte Long Paclitaxel-eluting
coronary stent system. At 38 mm, it can provide doctors an option that can potentially
reduce the number of stents used in more complex cases, simplifying procedures and
reducing costs, according to the company. Officials said it affords a more efficient treatment option for the estimated 8 to 10 percent of patients with long lesions.
In November, the company received FDA 510(k) clearance and European Union CE
Mark for the WallFlex fully covered esophageal stent for the treatment of malignant
esophageal obstructions caused by tumors in patients with esophageal cancer. The partially covered version was cleared by the FDA and received CE Mark in 2008. Patients
with obstructions due to esophageal cancer may have difficulty swallowing, resulting in
severely limited quality of life. Complete blockages of the esophagus can prevent liquid
consumption. The WallFlex stent allows physicians to reopen the esophagus.
The end of the year also brought an end to a government investigation into Boston