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    Boston Scientific Corp (BSX)

    Q2 2024 Earnings Summary

    Reported on Jan 10, 2025 (Before Market Open)
    Pre-Earnings Price$78.59Last close (Jul 23, 2024)
    Post-Earnings Price$76.60Open (Jul 24, 2024)
    Price Change
    $-1.99(-2.53%)
    • Boston Scientific is experiencing strong and sustainable organic growth, expected to continue through 2024 and into 2025, driven by strategic portfolio choices in high-growth markets and consistent execution across businesses and regions.
    • The company's electrophysiology (EP) segment, particularly the FARAPULSE Pulsed Field Ablation system, is a major growth driver with significant adoption and potential to become one of the largest businesses for Boston Scientific; its safety, efficiency, and clinical benefits position it strongly against competitors, supporting durable growth in EP for years to come.
    • New product launches and approvals, such as the AGENT Drug-Coated Balloon in Interventional Cardiology and the modular CRM system in Cardiac Rhythm Management, are expected to contribute significantly to future growth, further enhancing Boston Scientific's market position and profitability.
    1. Growth Sustainability
      Q: Can growth continue into '24 and '25?
      A: Management aims to sustain high growth, targeting to be the highest-performing med tech company in sales and EPS growth for many years. They've shifted into faster-growing markets with weighted average growth rates of 7%-8%. Strong global growth includes double-digit increases in Europe and Asia Pacific, with robust performance in MedSurg and cardiovascular portfolios.

    2. FARAPULSE Growth
      Q: Is FARAPULSE's growth sustainable amid competition?
      A: The company believes FARAPULSE will be a differentiated growth driver for years, potentially becoming their biggest business. Early U.S. launch shows high physician adoption due to safety and efficacy advantages. They're confident despite upcoming competitors, as they've not seen material impact in Europe.

    3. TAVR Update
      Q: Has there been a timing change on TAVR data release?
      A: They completed enrollment of the 1,500-patient TAVR trial and expect to present data in the first half of 2025, likely at the ACC meeting. Due to the trial's size and complexity, they will miss fall meeting deadlines, so no data release before then.

    4. Margin Expansion
      Q: What is the impact of FARAPULSE on margins?
      A: FARAPULSE will become a significant, accretive growth driver for gross margin by 2025-2026. Initial stages are slightly dilutive due to inventory charges and under-absorbed manufacturing, but these will improve over time.

    5. Profitability Reinvestment
      Q: How are you reinvesting profits to sustain growth?
      A: The company balances reinvestment with margin improvement, investing in commercial functions across the portfolio—not just FARAPULSE. They leverage back-office efficiencies to support long-term top-line performance.

    6. WATCHMAN Market Share
      Q: Are you losing share in WATCHMAN business?
      A: They remain confident with nearly 90% U.S. market share in WATCHMAN. Growth of 20% is strong, and any occasional losses are minimal and limited to price-sensitive accounts. They're launching WATCHMAN Flex Pro and a new steerable sheath to maintain leadership.

    7. Silk Road Acquisition
      Q: What excites you about the Silk Road acquisition?
      A: Silk Road's TCAR technology adds a strong asset, expected to grow faster under Boston Scientific due to their portfolio and global reach. They aim to improve margins via integration and become more important to vascular surgeons.

    8. EP Portfolio Evolution
      Q: How is the EP portfolio evolving beyond ablation?
      A: They're expanding into mapping and ICE products, developing new catheters like FARAPOINT and FARAFLEX. Clinical trials aim to widen FARAPULSE indications beyond AFib. There's synergy with access solutions and WATCHMAN for pull-through opportunities.

    9. Additional Growth Drivers
      Q: How will other products contribute to future growth?
      A: Launching Agent DCB with a multiyear advantage and superior data for 10% of the market. Planning to launch Modular ATP in 2025, strengthening CRM growth. Endo and Uro businesses are growing near double digits, and the Axonics acquisition will enhance these divisions.

    10. FARAPULSE Revenue and TPT
      Q: Can you break down FARAPULSE revenue and TPT status?
      A: They won't break out capital vs. disposable revenues but note disposables are more sizable. They've submitted for TPT; though strict criteria apply, pricing isn't a barrier to adoption.

    11. RHYTHMIA and FARAVIEW
      Q: What’s the impact of launching RHYTHMIA and FARAVIEW?
      A: Expected approvals of the NAV-enabled FARAWAVE catheter and FARAVIEW software will drive RHYTHMIA adoption. FARAVIEW understands PFA, offering workflow advantages and minimizing fluoroscopy and catheter exchanges, leading to safer, efficient procedures.

    12. FARAPULSE Adoption
      Q: Any update on FARAPULSE adoption metrics?
      A: While specific numbers aren't disclosed, once sites adopt FARAPULSE, usage is quick and sustained. Hospitals show high utilization without interruption, indicating strong adoption.