Boston Scientific Announces First Quarter Spe...( NATICK Mass. April 15 /- Boston Scien...)

NATICK, Mass., April 15 /PRNewswire-FirstCall/ -- Boston Scientific (NYSE: BSX) today announced special items that will reduce its GAAP earnings for the first quarter. The Company plans to release its first quarter financial results on April 20.

As the Company disclosed last month, the Court of Appeals for the Federal Circuit upheld the District Court's decision that Johnson & Johnson's (J&J) Bx Velocity(R) and Cypher(R) Stent Systems infringe Boston Scientific's patent and that the patent is valid. The Appeals Court reversed the District Court with respect to J&J's infringement claims against the TAXUS(R) Liberte(R) Stent and instructed the District Court to dismiss those claims with prejudice. The Company expects to receive a favorable financial award based on the Appeals Court's ruling, but in accordance with accounting regulations the Company will wait until payment is assured before recording any related gain.

In addition, the Court of Appeals affirmed the District Court's decision that Boston Scientific's Express(R), TAXUS(R) Express(R) and Liberte(R) Stents infringe one J&J patent and that the patent is valid. The Court also affirmed that Boston Scientific's Liberte Stent infringes a second J&J patent and that the patent is valid. The Company will record an accrual of $237 million ($197 million after-tax) in the first quarter for its estimated exposure on this ruling, in accordance with accounting regulations. This amount represents an estimate of the low end of the range of potential outcomes related to this matter. The range is subject to substantial estimation, including attempting to determine the possible future findings of a jury. As such, the high end of the range cannot be reasonably estimated at this time.

A damages trial on the above infringements has not been scheduled
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