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    Boston Scientific Corp (BSX)

    BSX Q2 2024: Raises FY24 Organic Revenue Growth to 13–14%

    Reported on Jun 17, 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%)

    What went well

    • Strong global revenue growth and sustained high performance: Boston Scientific is experiencing robust growth across all regions, with organic revenue growth guidance raised to 13% to 14% for the full year 2024, exceeding previous expectations. The company's shift to faster-growing markets, with a weighted average market growth rate of 7% to 8%, and strong product portfolio are expected to drive continued revenue and EPS growth, distinguishing BSX from its peers.
    • Innovative product pipeline and strategic acquisitions fueling future growth: The expansion of high-growth product lines like FARAPULSE, WATCHMAN, Agent DCB, and upcoming launches in modular CRM devices are expected to accelerate growth and improve margins. Strategic acquisitions such as Axonics and Silk Road Medical strengthen key divisions and are anticipated to contribute operational benefits in 2025 and beyond.
    • Effective reinvestment strategy supporting sustainable growth and margin expansion: Boston Scientific is balancing profitability with reinvestment in high-growth areas across its broad portfolio, leading to an increase in full-year adjusted operating margin expansion goal to 50 to 70 basis points. This strategic reinvestment is expected to deliver sustained top-tier revenue growth while expanding operating margins.

    What went wrong

    • Boston Scientific's gross margins are under pressure due to higher-than-expected inventory charges related to the POLARx cryoablation system, caused by the rapid adoption of FARAPULSE. Additionally, manufacturing under-absorption and increased capital placements are dilutive to gross margins, which are expected to be slightly below the 2023 rate for the full year.
    • The U.S. launch of the ACURATE neo2 transcatheter aortic valve replacement (TAVR) system is delayed, with data presentation now expected in the first half of 2025 at the ACC meeting. This delay could allow competitors to strengthen their positions in the TAVR market before Boston Scientific can enter.
    • Upcoming competition in the pulsed field ablation (PFA) market from other companies' PFA systems could challenge Boston Scientific's market share and growth in the electrophysiology segment. While FARAPULSE currently leads, competitors' PFA products are expected to launch in the U.S., potentially impacting future growth.

    Q&A Summary

    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.

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