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The Natick, Mass.-based medical technology company, which employs about 5,000 people in the Twin Cities, attributed results to pricing pressure on medical devices, a soft market for heart defibrillators and uncertainty around health care measures being considered by Congress. The company cut full-year sales and profit projections.
The company reported a $200 million profit on $2 billion in sales for the quarter ended Sept. 30. Earnings per share beat analysts' estimates, but the company lowered its forecast for 2009.
The results come on the heels of a cryptic announcement this month from rival St. Jude Medical Inc., which cut its profit forecast for the third quarter due to sluggish sales. That news sent the Little Canada company's shares down 13 percent. More details on St. Jude will be revealed today when it releases its quarterly report. Fridley-based Medtronic Inc. reports results Nov. 24.
But Boston Scientific's third-quarter report points to a challenging environment for medical devices. The U.S. market for one of its most popular and profitable devices, implantable cardioverter defibrillators that sell for $30,000 each, is expected to grow 2 percent, down from projections of 3 percent. While the market has not been as strong as expected, CEO Ray Elliott said, "we have not seen the slowdown in hospital stocking described by St. Jude."
Another signature product for the company -- the drug-coated heart stent -- is experiencing pricing pressure, and a clinical study released recently indicated an Abbott Laboratories stent fared better in patients. Elliott discounted the research Tuesday, saying it was a single-hospital study versus one involving several centers, and that results were inconsistent with a body of evidence involving more than 46,000 patients over nine years that indicates superiority of Boston Scientific's stent. Shares of Boston Scientific declined $1.59 Tuesday, closing at $8.57.
Dow Jones News Service contributed to this report.
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