Company: BSX
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000885725-25-000041
Chunk: 90

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 90
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 to the same periods in the prior year. The primary factors that impacted gross profit margin in the second quarter and first six months of 2025 were inventory charges of approximately $85 million resulting from the global discontinuation of the ACURATE platform and other period expenses, partially offset by increased sales of higher margin products.

Operating Expenses 

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

 Three Months Ended June 30,Six Months Ended June 30, 2025202420252024(in millions)$% of Net Sales$% of Net Sales$% of Net Sales$% of Net SalesSelling, general and administrative expenses$1,716 33.9 %$1,446 35.1 %$3,312 34.1 %$2,810 35.2 %Research and development expenses526 10.4 %383 9.3 %969 10.0 %749 9.4 %

Selling, General and Administrative (SG&A) Expenses

During the second quarter of 2025, SG&A expenses increased $269 million, or 19 percent, compared to the prior year period and were 120 basis points lower as a percentage of net sales. During the first six months of 2025, SG&A expenses increased $502 million, or 18 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 in the second quarter and first six months of 2025 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, and was also due to comparatively higher acquisition-related and restructuring-related expenses.

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 second quarter of 2025, R&D expenses increased $143 million, or 37 percent, compared to the prior year period and 110 basis points higher as a percentage of net sales. During the first six months of 2025, R&D expenses increased $221 million, or 29 percent, compared to the prior year period and 60 basis points higher as a percentage of net sales. R&D expenses increased in both periods as a result of investments across our businesses in order to maintain a pipeline of new products that we believe will