Stents Drive Boston Scientific Earnings

Paul A. LaViolette, Boston Scientific's chief operating officer, said the company has recovered from its recalls of nearly 100,000 drug-coated and bare metal stents in July and August, saying it "took the wind out of our sails for a very brief time."

Since August, he said the company's monthly share of the U.S. drug-coated stent market has remained consistent with a low of 63% in August and a high of 66% in September. For December, he said Boston Scientific had captured 64% of the market.

Since the last recall announcement, LaViolette said 400,000 Taxus stents have been implanted without any reports of the difficulties that provoked the recalls. "That problem is behind us," he said.

The company said it hopes to launch a new stent delivery system called Liberte in the U.S. in June or July pending regulatory approval. The company began selling the Liberte system in 18 countries earlier this month, and it hopes for a second-quarter launch in European countries.

For the full year, Boston Scientific sold $2.35 billion worth of coronary stents worldwide, up 345% from 2003.

For fiscal 2004, on a GAAP basis, the company earned $1.06 billion, or $1.24 a share, on revenue of $5.62 billion. The results included $322 million in special charges. For fiscal 2003, the company earned $472 million, or 56 cents a share, on revenue of $3.48 billion.