Net drops 64% at Boston Scientific

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Boston Scientific Corp. said first-quarter profit fell 64 percent because of declining sales of devices that prop open clogged heart arteries and shock stopped hearts back to normal rhythm.

Net income fell to $120 million, or 8 cents a share, from $332 million, or 40 cents, a year earlier, before the company acquired Guidant Corp. for $27.5 billion, Natick-based Boston Scientific said. Profit, including 2 cents of charges, missed the 11-cent average estimate of 15 analysts surveyed by Bloomberg. In February, the company forecast adjusted earnings of 15 cents to 21 cents a share, and profit of 4 to 10 cents a share.

Demand for heart stents fell 26 percent from a year earlier, and sales of implantable defibrillators dropped 5 percent.

Orders for drug-coated stents have been sliding since researchers reported increased risks of deadly blood clots. Demand for defibrillators, implanted in heart-failure patients, plunged in 2005 after Guidant recalled a model linked to seven deaths because of battery failures.

"Given the challenges Boston Scientific faces with its stent and defibrillator platforms, we believe it is prudent to remain on the sidelines," said Glenn J. Novarro, an analyst at Bank of America in New York, in a note to clients April 16.

Fourth-quarter revenue increased 29 percent to $2.09 billion, reflecting the addition of Guidant's business.

The company last year borrowed $9 billion to buy Guidant and became the number two player in the $10 billion-a-year market for electronic heart devices. The acquisition generated amortization expenses of $120 million and interest expenses of $115 million in the first quarter, company spokesman Paul Donovan said. (Bloomberg)

Cancer drug sales boost Novartis

Drug maker Novartis AG posted an 11 percent increase in first-quarter earnings, led by strong sales of its hypertension and cancer treatments.

The Basel company saw profit rise to $2.17 billion from $1.96 billion in the first quarter of 2006, beating analysts' forecasts for $1.8 billion. Sales rose 18 percent to $9.82 billion.

Novartis chairman and chief executive Daniel Vasella said he was confident 2007 would be "another year of record sales and earnings."

Vasella said the company had completed a series of divestments from noncore businesses as part of a strategy to focus on healthcare. Earlier this month Novartis sold Gerber Products Co. to food giant Nestle SA for $5.5 billion. (AP)

Chip slowdown hits

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Texas Instruments Inc., the world's largest maker of mobile-phone chips, reported a 12 percent drop in first-quarter profit, the first decline in more than two years, as phone shipments slowed.

Net income fell to $516 million, or 35 cents a share, from $585 million, or 36 cents a share, a year earlier, the Dallas-based company said. Revenue declined 4.3 percent to $3.19 billion, topping the average estimate of $3.17 billion among 31 analysts surveyed by Bloomberg.

Nokia Oyj and Motorola Inc., the world's two biggest makers of mobile phones, indicated last week that worldwide growth in handsets was slowing. That's contributed to an inventory glut of chips, a problem Texas Instruments said was "still winding down" last month. The company doubled its dividend last week, a sign the company may not anticipate growth opportunities. (Bloomberg)

Amgen quarterly profit up 15%

Amgen Inc., the world's largest biotechnology company, said first-quarter profit rose 15 percent on sales of drugs to treat anemia and said it will apply for approval of another medicine this year.

Net income climbed to $1.11 billion, or 94 cents a share, from $1 billion, or 82 cents, a year earlier, the company, based in Thousand Oaks, Calif., said. Profit excluding certain items was $1.08 a share, matching the $1.08 average estimate of 21 analysts surveyed by Bloomberg.

Revenue for the quarter rose 15 percent to $3.69 billion. Analysts were estimating revenue of $3.72 billion.

Amgen said it will reduce expenses and update its revenue forecast because sales of its two top-selling anemia drugs, Aranesp and Epogen, may fall after studies showed the medicines increased the risk of death in high doses. Amgen also reported positive trial results for drugs in development, giving a boost to the stock after it sank to a 52-week low earlier this month. (Globe wires)