Boston Scientific Corp. (BSX) projected adjusted 2009 earnings per share well above Wall Street estimates, though its revenue estimate brackets current expectations.

The medical device maker downplayed a $2.7 billion fourth-quarter charge, noted that it continues to talk with the Food and Drug Administration to resolve a 2006 warnings letter, and asserted that involuntary stock sales by its co-founders are likely over.

Shares of the company recently rose 78 cents, or 9%, to $9.28.

Boston Scientific projected adjusted earnings for 2009 of 80 cents to 90 cents a share. Using Generally Accepted Accounting Principals, the company expects earnings of 56 cents to 68 cents a share.

Revenue for the year is expected to be $8 billion to $8.5 billion.

Wall Street analyst's currently expect the company to report 2009 earnings of 60 cents a share on revenue of $8.24 billion.

For the longer term, the company projects revenue growth of 5% to 7% in 2010 and 2011, while adjusted earning per shares rise more than 50% in the same period.

The guidance comes after Boston Scientific reported a fourth-quarter loss late Wednesday of $2.43 billion, or $1.62 a share.

The loss was weighed down by a $2.68 billion write-down of goodwill related to its $28.4 billion acquisition of Guidant Corp. in 2006.

In a conference call Thursday, Chief Executive Jim Tobin downplayed the charge, saying that "taking a goodwill charge isn't all that unusual these days."

The company explained that the impairment came from changes in end-market demand relative to original assumptions about the deal coupled with the recent disruption in the credit markets.

The charge has no impact on bank covenants or business operations, the company said.

Tobin said the company is "pretty comfortable" with its cash position and access to capital and remains capable of making deals. But he warned that such activity could be slower than others may expect as it has "raised the bar" on the sort of deals it is willing to make.

"We aren't going to be doing as many deals as we historically have, regardless of our cash position," said Tobin.

Boston Scientific's U.S. market share in the drug eluting stent business rose 2 percentage points to 47% in the quarter, with the remaining share going to Medtronic Inc. (MDT) with 10%, Johnson & Johnson (JNJ) with 14%, and Abbott Laboratories (ABT) with 29%.

The company indicated that the market share was on the rise, to 49%, as the quarter ended with an almost 50/50 split between its Promus stent and Taxus line.

Going forward, Tobin said that the company expects market share in the stent business to remain in the high 40-percentage range to "maybe a tad over" 50%.

Furthermore, Tobin said the company continues to work with the Food and Drug Administration to resolve the final remaining issues related to a January 2006 corporate warning level.

The letter, stemming from problems at company plants, set restrictions on approving so-called "Class III" medical devices, or the devices with the most stringent regulatory requirements,

The warning letter remains in effect, but restrictions are peeling away as evidenced by recent FDA approvals for Boston Scientific devices.

Tobin said that involuntary selling of stock by Boston Scientific co-founders Peter Nicholas and John Abele "seems to have stopped." He warned that it could start again, but "I don't think anyone expects that it will."

In recent month, the co-founders flooded the market with millions of shares, contributing to the company's flagging stock price that was down 30% in the last 12 month, as of yesterday's close.

-By Thomas Gryta; Dow Jones Newswires; 201-938-2053; thomas.gryta@dowjones.com

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