Boston Scientific : Q1 2019 Earnings Release and Financial Results

FOR IMMEDIATE RELEASE

BOSTON SCIENTIFIC ANNOUNCES RESULTS FOR FIRST QUARTER 2019

Marlborough, Mass. (April 24, 2019) -- Boston Scientific Corporation (NYSE: BSX) generated sales of $2.493 billion during the first quarter of 2019. This represents growth of 4.8 percent on a reported basis, 7.8 percent on an operational1basis and 6.3 percent on an organic2basis, all compared to the prior year period. ThecompanyreportedGAAPearningsof$424millionor$0.30pershare(EPS),comparedtoGAAPearnings of $298 million or $0.21 per share a year ago, and achieved adjusted earnings per share of $0.35 for the period, compared to $0.33 a year ago.

"Our global team and differentiated portfolio enabled us to deliver good sales and earnings growth this quarter, despite some revenue softness compared to our estimates," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "With our strong pipeline and category leadership strategy, we are confident in our top tier 2019 outlook and how we can help improve outcomes for patients around the world for years to come."

First quarter financial results and recent developments:

•Reported first quarter sales of $2.493 billion, representing an increase of 4.8 percent on a reported basis, compared to the company's guidance range of 6 to 7 percent; 7.8 percent on an operational basis;and6.3percentonanorganicbasis,comparedtothecompany'sguidancerangeof7to8percent, all compared to the prior year period.

•Reported GAAP earnings of $0.30 per share compared to the company's guidance range of $0.32 to $0.33 per share. Achieved adjusted earnings per share of $0.35 compared to the guidance range of $0.35 to $0.36 per share.

•Achieved first quarter revenue growth in all segments, compared to the prior year period:

MedSurg: 7.7 percent reported, 10.4 percent operational and 6.7 percent organic

Rhythm and Neuro: 2.8 percent reported, 5.6 percent operational and organic

Cardiovascular: 4.2 percent reported, 7.8 percent operational and 6.8 percent organic

•Reported the following regional revenue changes, compared to the prior year period:

U.S.: 7.1 percent reported and operational

EMEA (Europe, Middle East and Africa): (0.3) percent reported and 7.9 percent operational

APAC (Asia-Pacific): 5.3 percent reported and 10.1 percent operational

Emerging Markets3: 13.3 percent reported and 22.0 percent operational

•ReceivedU.S.FoodandDrugAdministration(FDA)approvalfor,andcommencedcontrolledlaunch in Europe of, the LOTUS Edge™ Aortic Valve System, a minimally invasive transcatheter aortic valve replacement (TAVR) technology for patients with severe aortic stenosis who are considered at high risk for surgical valve replacement via open heart surgery.

•Announced results from the VIRTUS study demonstrating the VICI VENOUS STENT™ System exhibitedaprimarypatencyrateof84%at12monthsanda98.5%rateoffreedomfrommajoradverse events at 30 days, with both measures surpassing the predefined efficacy and safety performance goals in patients with ilieofemoral venous tract obstructions.

•CommencedenrollmentoftheglobalCLEAR-DVTstudywhichwillevaluatewhetherthrombectomywith the AngioJet™ ZelanteDVT™ Thrombectomy Catheter significantly reduces the two-year occurrence of post-thrombotic syndrome in patients with iliofemoral deep vein thrombosis.

•Announced results from theAF-FICIENT I study highlighting positive safety and efficacy data for theLUMINIZE™Radiofrequency(RF)BalloonCatheterforisolationofpulmonaryveins(PV)when treating patients with atrial fibrillation (AF).

•Received approval of the WATCHMAN™ Left Atrial Appendage Closure (LAAC) Device from the Pharmaceuticals and Medical DevicesAgency in Japan, and obtained CE Mark and initiated a limited market release for the next generation WATCHMAN FLX™ LAAC Device in Europe. Both devices are intended to reduce the risk of stroke in patients withnon-valvular AF.

•Received insurance coverage from United Healthcare, the largest commercial insurer in the U.S., for the SpaceOAR™ Hydrogel, a therapy used to reduce common and debilitating side effects that men may experience after receiving prostate cancer radiotherapy.

•Commenced global commercial launch of the ORISE™ Submucosal LiftingAgent, designed for use in endoluminal surgery to lift polyps, adenomas,early-stage cancers and other gastrointestinal mucosal lesions prior to resection.

•Launched the Jagwire™ Revolution High Performance Guidewire, alow-profile guidewire offering enhanced steerability in the pancreaticobiliary system, enhancing the company's leadership in the biliary space.

•Commenced the full commercial launch of the Spectra WaveWriter™ Spinal Cord Stimulator (SCS) System in Europe.

•Completed a public offering of $4.3 billion aggregate principal amount of senior notes, a portion of whichisintendedtofinancetheproposedacquisitionofBTGplc.InlateFebruary,BTGplcannounced its requisite shareholder approval for the proposed acquisition, which is expected to closemid-year.

•Following an FDAdevice reclassification and subsequent order for manufacturers to stop U.S. sales, the company ceased global sales and distribution of surgical mesh products indicated for transvaginal repair of pelvic organ prolapse. As a result, the company now anticipates an approximate $30 million negative impact globally to 2019 full year revenue, including an approximate $5 million sales return reserve recorded in the first quarter. In addition, the company recorded an approximate $18 million charge to net income in the first quarter. Adjusted net income was negatively impacted by $11 million in the first quarter of 2019.

•Announcedplanstohostandwebcastinvestoreventsfeaturingpresentationsandquestion-and-answersessions with members of senior management on the following dates:

May 9, 2019, 12:00 p.m. to 1:00 p.m. EDT, focused on the company's Cardiac Rhythm Management and Electrophysiology portfolio in connection with attendance at the 40th Annual Heart Rhythm Society Scientific Sessions in San Francisco;

May 20, 2019, 10:30 a.m. to 11:30 a.m. EDT, focused on the company's Endoscopy portfolio in connection with attendance at Digestive Disease Week 2019 in San Diego;

June 26, 2019, 7:30 a.m. to 1:00 p.m. EDT, Investor Day business review meeting in New York.

1. Operational revenue growth excludes the impact of foreign currency fluctuations.

2.OrganicrevenuegrowthexcludestheimpactofforeigncurrencyfluctuationsandsalesfromtherecentacquisitionsofNxThera,Inc.(NxThera), Claret Medical, Inc. (Claret) and Augmenix, Inc. (Augmenix), each with no prior year comparable sales.

3.We define Emerging Markets as the 20 countries that we believe have strong growth potential based on their economic conditions, healthcare sectors and our global capabilities. Periodically, we assess our list of Emerging Markets; effective January 1, 2019, we updated our list of Emerging Market countries. We have revised prior year amounts to the current year's presentation (as denoted with † throughout).

Net sales for the first quarter by business and region:

										Change
	Three Months Ended							Less: Impact				Less:
		March 31,				Reported		of Foreign		Operational		Impact of		Organic
								Currency				Recent
(in millions)		2019		2018
						Basis		Fluctuations		Basis		Acquisitions		Basis
Endoscopy	$	440	$	418		5.2 %	(2.9)%		8.1%			-%	8.1%
Urology and Pelvic Health		326		293		11.4 %	(2.2)%		13.6%		9.0%		4.6%
MedSurg		766		711		7.7%		(2.7)%		10.4%		3.7%		6.7%
Cardiac Rhythm Management		491		493		(0.4)%	(3.0)%		2.6%			-%	2.6%
Electrophysiology		79		75		6.4 %	(3.6)%		10.0%			-%	10.0%
Neuromodulation		186		169		10.5 %	(1.9)%		12.4%			-%	12.4%
Rhythm and Neuro		757		736		2.8%		(2.8)%		5.6%		-%		5.6%
Interventional Cardiology		661		645		2.5 %	(3.7)%		6.2%		1.4%		4.8%
Peripheral Interventions		311		288		7.9 %	(3.3)%		11.2%			-%	11.2%
Cardiovascular		972		933		4.2%		(3.6)%		7.8%		1.0%		6.8%
Net Sales
	$	2,493	$	2,379		4.8%		(3.0)%		7.8%		1.5%		6.3%

								Change
	Three Months Ended							Less: Impact
		March 31,				Reported		of Foreign		Operational
								Currency
(in millions)		2019		2018
						Basis		Fluctuations		Basis
U.S.	$	1,403	$	1,310		7.1 %		- %	7.1%
EMEA		561		563		(0.3)%	(8.2)%		7.9%
APAC		437		415		5.3 %	(4.8)%		10.1%
Latin America and Canada		92		91		0.3 %	(7.2)%		7.5%
Net Sales
	$	2,493	$	2,379		4.8%		(3.0)%		7.8%
Emerging Markets†
	$	297	$	262		13.3%	(8.7)%		22.0%

Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely.

Sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of recent aforementioned acquisitions are not prepared in accordance with U.S. GAAP.

Guidance for Full Year and Second Quarter 2019

The company now estimates revenue growth for the full year 2019, versus the prior year period, to be in a range of approximately 7 to 8 percenton a reported basis (compared to prior guidance of 7 to 9 percent), and a growth range of approximately 7 to 8 percent on an organic basis (compared to prior guidance of 7 to 8.5 percent). Full year organic guidance excludes the impact of foreign currency fluctuations and contribution of approximately 110 basis points from the acquisitions of NxThera, Claret and Augmenix, each with no prior period related net sales. The company now estimates income on a GAAP basis in a range of $1.09 to $1.13 per share (compared to prior guidance of $1.13 to $1.18 per share) and estimates adjusted earnings, excluding certain charges (credits), in a range of $1.54 to $1.58 per share (compared to prior guidance of $1.53 to $1.58 per share).

The company estimates revenue growth for the second quarter of 2019, versus the prior year period, to be in a range of approximately 5 to 7 percent on a reported basis and a growth range of approximately 6 to 7 percent on an organic basis. Second quarter organic guidance excludes the impact of foreign currency fluctuations and contribution of approximately 140 basis points from the acquisitions of NxThera, Claret andAugmenix, each with no prior period related net sales.The company estimates earnings on a GAAPbasis in a range of $0.23 to $0.25 per share and adjusted earnings, excluding certain charges (credits), in a range of $0.37 to $0.39 per share.

Conference Call Information

Boston Scientific management will be discussing these results with analysts on a conference call today at 8:00 a.m. EDT. The company will webcast the call to interested parties through its website: www.bostonscientific.com. Please see the website for details on how to access the webcast.The webcast will be available for approximately one year on the Boston Scientific website.

About Boston Scientific

Boston Scientific transforms lives through innovative medical solutions that improve the health of patients aroundtheworld. Asaglobalmedicaltechnologyleaderfor40years,weadvancescienceforlifebyproviding abroadrangeofhighperformancesolutionsthataddressunmetpatientneedsandreducethecostofhealthcare. For more information, visit www.bostonscientific.comand connect on Twitterand Facebook.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend," "aiming" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our expected net sales, GAAP, operational and organic revenue growth rates, GAAP earnings and adjusted earnings for the second quarter and full year 2019, our financial performance, our business plans and our positioning for revenue and earnings growth. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These risks and uncertainties, in some cases, have affected and in the future could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. Asaresult,readersarecautionednottoplaceunduerelianceonanyofourforward-lookingstatements.

Risks and uncertainties that may cause such differences include, among other things: future economic, political, competitive, reimbursement and regulatory conditions, new product introductions and the market acceptance of those products, markets for our products, expected pricing environment, expected procedural volumes, the closing and integration of acquisitions, clinical trial results, demographic trends, intellectual property rights, litigation, financial market conditions, the execution and effect of our restructuring program, the execution and effect of our business strategy, including our cost-savings and growth initiatives and future business decisions made by us and our competitors. New risks and uncertainties may arise from time to time and are difficult to predict. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item IA - Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. We