Boston Scientific has reported that its net income fell 15 percent in the second quarter of 2008, amid slumping sales of its drug-eluting stents (DES).
The company reported its net income for the second quarter of 2007 was $115 million, compared to the second quarter of 2007, included acquisition-related charges and amortization expense (after-tax) of $127 million.
The Natick, Mass.-based company said that net sales for the second quarter of 2008 were $2.02 billion, including sales from divested businesses of $19 million and a reduction of $22 million in revenue as a result of recording an increase in its sales return reserve in anticipation of its new DES platforms. These sales compare to $2.07 billion for the second quarter of 2007, including sales from divested businesses of $139 million.
Boston Scientific said its worldwide DES sales for the second quarter of 2008 were $382 million, compared to $437 million for the second quarter of 2007. The U.S. DES sales were $175 million, compared to $249 million. International sales of DES were $207 million, as compared to $188 million.
Worldwide sales of the company's cardiac rhythm management (CRM) products for the second quarter of 2008 were $578 million, which included $420 million of implantable cardioverter defibrillator (ICD) sales, compared to worldwide CRM sales of $524 million for the second quarter of 2007, which included $377 million of ICD sales, according to Boston Scientific. The U.S. CRM product sales were $364 million, which included $276 million of ICD sales, compared to $332 million, which included $253 million of ICD sales.
To combat anticipated loses, Boston Scientific sold off a portion of its investment portfolio in June. In the first quarter, the company profits were gained by shedding some of its business lines and its plans to cut 2,300 jobs, or 8 percent of its workforce.