Company: BSX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000885725-25-000026
Chunk: 134

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 134
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All other, including inventory charges and other period expenses(1.9)Gross profit margin - period ended March 31, 202568.8%

Gross profit margin increased in the first quarter of 2025 as compared to the same period in the prior year. The primary factors that impacted gross profit margin in the first quarter of 2025 were increased sales of higher margin products, offset by inventory charges and other period expenses.

Operating Expenses 

The following table provides a summary of our key operating expenses:

 Three Months Ended March 31, 20252024(in millions)$% of Net Sales$% of Net SalesSelling, general and administrative expenses$1,597 34.2 %$1,364 35.4 %Research and development expenses443 9.5 %366 9.5 %

Selling, General and Administrative (SG&A) Expenses

During the first quarter of 2025, SG&A expenses increased $233 million, or 17 percent, compared to the prior year period and were 120 basis points lower as a percentage of net sales. The increase in SG&A expenses was driven in part by higher selling costs driven by higher global net sales and costs to support product launches, including the Farapulse™ Pulsed Field Ablation System in our Electrophysiology business unit.

Research and Development (R&D) Expenses

We remain committed to advancing medical technologies and investing in meaningful R&D projects across our businesses. During the first quarter of 2025, R&D expenses increased $77 million, or 21 percent, compared to the prior year period and remained flat as a percentage of net sales. R&D expenses increased as a result of investments across our businesses in order to maintain a pipeline of new products that we believe will contribute to profitable sales growth.

Other Operating Expenses

The following provides a summary of certain of our other operating expenses, which are excluded by management for purposes of evaluating operating performance; refer to Additional Information for a further description.

Amortization Expense

During the first quarter of 2025, Amortization expense increased $6 million, or 3 percent, compared to the prior year period.

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Contingent Consideration Net Expense (Benefit)

Three Months Ended March 31,(in millions)20252024Net charges (benefit)$5 $17 Payments for prior acquisitions following the achievement of associated milestones— 123 

To recognize changes in the fair value of our contingent consideration liability, we