BSX - Earnings call transcript Q3 2020 | Boston Scientific Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Boston Scientific Third Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Susan Lisa, Vice President, Investor Relations. ahead. go Please,

Susan Lisa

and Good QX me Andrew. the and Thanks joining of this measures Vice for Executive a non-GAAP We Thank release the results, press today's morning, which call release. With earlier President Executive Brennan, on and announcing Chairman in Financial are us. Officer. Officer; issued our you, morning Dan everyone. Chief XXXX Mike used Chief reconciliations Mahoney, included

of the release, have section measures the morning's COVID-XX a as an the future approximately reconciliations of focus general Filings. well for We we'll this to and of the as Relations will outlook duration pandemic, will the comments & questions. catalysts then The and under non-GAAP that Mike for business. take the in performance, financials Investor as call posted his your website today's review of heading used Financials be call Dan inclusive quarter, of will our QX well hour. impact as copy the on our of the

today's Dan joined Medical our Chief Meredith will Dr. Ken session, and Ian During by Officer, and be Dr. Mike Q&A Stein.

begin, I'd call, revenue currency Franchise. the and Health as remind specified, through the BTG sales of divestitures the there everyone like otherwise that organic. Intrauterine embolic as operational this references as portfolio net well no are prior the foreign revenue on period fluctuations, and certain sales, unless related are impact the the global call, revenue, microspheres to On of all further organic including acquisitions, to excludes and excludes we of Before impact August XX,

the share, and new like year-over-year. selling spend tax of our COVID-XX laws, expenses. forward-looking flow may include and expected other product call as our Factors performance, this savings words. the contains of growth recent cost similar statements market They R&D I'll clinical note, launches, statements with growth At SEC. financial be words only our growth comments. his the cause for anticipate, to about our the turn securities rates, Finally, average for These obligation results, and Mike speak them. impact of disclaim and well pandemic of among the daily this earnings, expect, operations ADS, trials, those including XX-K today's as believe, and sales, things, XX-Q sales, as any upon point, and and and a include, such Risk intention and it cash to that Of the subsequent our may estimate statements margins by federal other other in we difference use, date, meaning company's most described opportunities, Factors identified section within in financial which or sales differences days and filed update over normalizes approvals

Michael Mahoney

launch cadence. Thanks, portfolio, build to that everyone Susie. made us our new new across third thank and category-leading we adoption you fuel commercial And for strong product report significant our to and joining today. quarter, clinical execution as I'm in excellent with capabilities we pleased progress

growth this declined operating improve through us of invest future B's margins the XX. promising enable sales flow to our excluding continue that end for adjusted to both to and Legacy and BTG EPS We operational are Intrauterine peer Health and divestiture and third in the confident at double-digit our the the quarter, our In sales business, X.X%, as deliver the X.X%, currency and group, grow cash normalizing continue term. of August for contribution declined well strong long of and organic [ph] high as business free will

becoming consecutive China sales also for highlights on means strategy diversifying performance markets to quarter. our basis. second these the Intervention, quarter. declined provide shifted third Rhythm will organic improved in was XXX and into includes Imaging, the US. plus represent WATCHMAN Africa China and Asia declined management, detail point negative bit. in reserves to the the sales our China based region Complex basis I'll as delivered of every anticipation and portfolio the growth quarter 'XX. related progress our tender significantly. inventory quarter return appendage reserves we left device This basis revenue XXXX. quarter, in improved X% to approximately impact success the fourth Europe, second from of quarter, strategically around our model in the atrial Every segment and include and stents franchise sales high-growth national the has next-generation public countries offer growth declined I launch XXX business the that quarter in our consistent urology X% strong with in Importantly, the of WATCHMAN XX% more performance in for sales a organic in of and in launch a US growth impact X%. health, the year-over-year a returned sequentially note very a of adjustments for drug-eluting FLX FLX including PCI, in on a swift Middle Pac versus third return that Regional We China many third in growth DES result point closure channel negative now East, X%. Heart consignment to revenue It Structural globe. an

balanced XX accelerate declined impact with sales million, in recovery Adjusted and business second growth quarter, operating to XXX includes are point sales X%, minus income neuromod tax fourth which $XX XX.X% detail. transition $XX tender, This, and Cardiology's points X% was the a down we in basis in to was related XXX double than X%. points CRM euro more Pharma includes sales XX% the operating $X.XX, a $X.XX $XXX too, China percentage down of of will the WATCHMAN year-to-date. and digits quarter and to which line in to was year-over-year. expectations, DES targeting respectively. and return Interventional a basis quarter for to Adjusted consignment our X% China margin, PI of million reserve DES the We Dan X%, approximately for transition revenue quarter adjusted impact business and health, public with mid-single negative endoscopy was includes related impact. across down are million negative expect million units. delivered all EP in growth tender combined a represents third rate decline WATCHMAN benefit that down our double-digit our nearly the for Specialty sharp were franchise. EPS regional including quarter, the related $XX This our and XXXX, mirrored growth a to performance organic consignment

evolve COVID continue excluding We to From trends to quarter, organic of the impact adjusted of Now WATCHMAN. impact the are outlook the to WATCHMAN standpoint, flare regions growth revenue an with operating quarter, the again, sequentially for aim third with caveat shift the to rate we COVID in for those worldwide to for largely expected, return uncertainty. fourth organic we've and ups. excluding fourth as in turn targeting margin obvious experiencing of quarter, fourth in improving consignment the shift similar consignment a the in quarter, to revenue even

the patient overall patient of meet of funnel slightly backlog, launches ability global of of pipeline benefiting the customers Admittedly still which approvals inside our with our backlog from We well improvement Our We're the new acuity we to remaining are a challenge worked recent determining as business our through have performing region. the high rates, also given ongoing new procedures, We're believe in helped strong and recovery. that profile portion acuity meaningful and manage that normal business the business or encouraged multiple by in is patient technologies. mix while compelling to of electric below by COVID estimated care. with our remains referral levels. also are the as our varied

health Resume improvement confidence X% our Pelvic Sequential have by the broad business health Uro intrauterine the and I'll divestiture. stone additional led that LithoVue, commentary franchises We challenges. it’s SpaceOAR normalizing elective these declined cadence on five-year data, benefit such help product sales ongoing as units. with will ever, well Health ASC for clinical launch was across quarter as Resume quarter, SpaceOAR provide prostate double launches the some higher and new quarter. US, Vue in sales in the with growing offset of now our third achieved target improvement all office by differentiated digits our Notably, more we as and our supported in a for procedures. high the portfolio, mix

which led declined sequential and quarter. hemostasis ASC outpatient endoscopy, of infection grew X%, quarter growth high franchises, relatively service. in the and US quarter our mix acuity in sales biliary third reflecting in along with both prevention, the double of favorable digits Trends For site by the in were a

for resilience Blocks as the to pancreas and procedures biopsies. continue in tumor We good see removal Bite such and ERCP stone

is hundred setting. launch Xst, trends D EXALT accelerating on over early the CMS globally and to July from outpatient transitional in that by payment pass-through Our went granted the encouragingly accounts with effect opened

enabling length release its to direct fewer with shorter resulting completed thus and of with about also ability a market visualization the interventions approach, limited enthusiastic We discover hospital. in SpyGlass of and the stay single-stage treat surgeons effectively patients

for X% launch to down of quarter second and X% with our third the In in single-use target sales declined quarter. We the sales of down continue sales XXXX. X% CRM, bronchoscope half high-voltage low-voltage

X% We've category portfolio, site launch We're service. aided to waveform Vertiflex Europe, electroporation including capability investments in by pain. declined and connectivity. our as RF, release Apama, revenue EP performance with leadership remotely very down the expanded will which And recovery XX our as MedTech, and in event trends monitoring, note, start, Neuromodulation, business balloon. interface to recent remains of we portfolio, need with plus RF is execute across be second-generation the our fastest to largest, the strategy move vaults. continue have market. returned we in Bluetooth patients organic announced in capabilities irreversible EP pleased that to to broad has be overall contour X% full SCS, further single-shot strong strengthening our fair launch digital been and and and up single-shot In nicely we're about balanced also quarter, seen catheter, pleased detection MRI adjusted quickly the Alpha a a our clinical elected procedure growing We have development and markets Luminize with Of very the contacts, offered will WaveWriter strong without space the CRM showing settings line one with We've off of in-person roughly implantable in limited which year-end. visit. and Europe importantly, POLARx, programmed by cryo our XXXX sequential the the were with LUX-Dx seamless an market sales in cardiac patient monitor to believe to back-end ability with a improvement. recently excited of and in our field serve is third discontinue investment given our in of

to deep brain stimulation. Turning

directional continue share Our Vercise to systems PC drive Gevia and gains. market

Additionally, bluetooth capability and channel brain control, visualization our MRI the rechargeable directional and on expands of platform our capabilities outcomes. innovative independent offer for recent launch Vercise our of Genus Genus technology segments primary designed capabilities and integrated foundational multiple structure in programming full-body the optimal both with patient's our EU new capabilities. builds to and

embolic Japan focus of of sales US and on Edge pleased trial both and space. Vigo, for performance progress device, Interventional points grew over which year-over-year to US with products national continue Cardiology. return WATCHMAN drive therapies, rollout continued US which also organically, TAVR such and tender. than the Within the from consignment XX-millimeter imaging impact the Microcatheter, reserves as DES launch IDE ACURATE grew SYNERGY enrollment. stents to and the cerebral like declined new as sales XX% transition enrolment, XD QX in sequentially EU Sentinel, related continue XX% as negative in the moving this the neoX XX and risk to to intermediate protection of coronary to We're China upcoming of includes as Turning we sales and consistent and quarter. LOTUS Comet products third and more our drug percentage the Mamba well

intermediate webcast now As ‘XX. approval we earlier risk XXXX, month, ACURATE in neoX LOTUS our this as U.S. well into TCT for in disclosed at expansion as Edge expect indication

hemodynamics. with believe very lower uniquely stroke pacemaker Our robust the the next-generation Returning in a TAVR fully quarter low recovery its in offer while impact demonstrated return a has IDE recaptured neoX of in that in platform a repositioned be third Edge in best-in-class double-digit Sentinel rates reduction valves numerous and and large both offers during may experienced to with the LOTUS and franchise procedures growth, WATCHMAN, registries. Europe distinct rates, is predictable excluding reserve. sales launching offers great We now at time. and control PVL rates, ACURATE benefits, both

a Our full feedback, gone and limited has of have targeting physician market we We FLX strategic making launch significant exceptional based of launch this WATCHMAN differentiated US we and to shift are consignment to for the given mid-XXXX. ahead schedule, product conversion well a growth. FLX release model the believe complements complete extremely investment, this highly strongly of with we're purposely and FLX moved clinically into by the potential

market rapidly and while WATCHMAN of price accelerating a position our drive competitive better leadership. model at which consignment the to enhances Moving to FLX our enable customers us conversion committed and agreements, will premium, share strengthens a support further all

of majority will headwind in consignment FLX exceeding this to revenue thus our goals in by larger QX slightly completing to than which XXXX, QX. growth shift are far We a and vast result target year-end the contracting

- mix of Turning well reflecting the organic a forma China. category-leading with new for on quarter. pro drug eluting, grew venous, single-digits favorable and portfolio launches. note, in X%, acuity the strong of as portfolio quarter, overall PI All delivered sales procedures, third grew growth Of to care product in arterial, organic cadence IO outpatient high of third in high in quarter IO in as and the PI, franchises medicine Interventional and site strength particular a ETG basis

to We've for ecosystem full our Varithena to the embolism share new true Therasphere no is launch launch for study BTG synergies. $XXX were positioned. solid, and We Voyager should of uniquely anticipate sharp a association launches, the growth at mortality Ranger by and and controller and became Oncology million Varicose Interventional cost ILUVIEN with which TCT upside showed accelerate and further two also as expect we synergies Vein recovery important XXXX. Venous as million, exit category highlighted organic this target paclitaxel-coated of US, continues Y-XX mid-quarter pulmonary targeted large in month, with we outcomes XXXX therapy of ahead earlier perform for from long-term originally with devices synergies, in gains. The Ranger the a this are also well and to a results continue where patients. imminent TCT, very in plan $XXX solely revenue with pad, mentioned adjudicated microcatheter. at select follow-up to Japan of China via presented the realizing moved DCB

medicine As to being by overall companies like among we product accomplishments companies lines inclusion. to overall and named health year, consecutive expand I'd second we America's the continue important capital of globally, highlight ranked also for top second Interventional BTG Forbes JUST the sustainability several including most care one this JUST for XX among diversity XX quarter, number equity the

culture management this change, communications responsible were transparent customer DSEs Our recognized efforts of for climate also leadership social list. combining named a commented. and also MIT justice, ethical to companies inaugural champion Glassdoor review XXX one

to health commitment efficacy our gap resources, gap and through awareness. partnerships disease the including provider equity and initiative, and a important close underserved in to our education both we continue communities as close society anti-racism state collaboration, and in So actions patient

I'll leave flare-ups. few you encouraged So outlook. with our points overall, by resilience about of quarterly in and face improvement COVID a brighter in the key business consistent trends We're

ACURATE neoX, such new product WaveWriter POLARx, WATCHMAN EXALT, Genus FLX, and We have of Vercise cadence launches portfolio across as a LUXDx. the robust Alpha,

strategically our enable beyond launches that multiple reach. also spend to high strong continue us and digital us capabilities, deploying compelling us develop positions new enhance customer and to venture partnership markets our pipeline growth adjacencies of in and new our Our access, markets. and to and position and portfolio XXXX financial expansion investment high-growth a in offers well with portfolio We're

close we winning grateful now of to things XXXX and employees to we over to improve free to and end group, and turn As out long-term operating peer XXXX, our spirit, our EPS highly grow deliver Dan. margins, their I'm extraordinarily I'll ability push at flow. remain double-digit strong confident high for in growth cash our the

Daniel Brennan

Thanks, Mike.

tailwind to consolidated declined exchange. X.X% divestitures the XX, foreign X.X% legacy embolic August foreign an XXX on which revenue decline $XX impact of BTG a excludes from the organic million operational currency sales and prior partially quarter On reported $X.XXX reflecting fluctuations, represents Third and of of billion, portfolio revenue business. of our contributed becoming quarter. in the offset revenue basis Intrauterine by points beads basis, Health

sales share adjusted the $X.XX to by the approach was XX.X%, line net $X.XX, reserve $X.XX the with in sales to of ongoing franchise, the improvement and benefit, the offset basis contribution negative as of in sequential the we conversion These point quarter manufacturing The our sales to COVID-XX expectations on with and volumes inventory upward WATCHMAN here a trend the consignment partially tax impact transition gross revenue a a a WATCHMAN model Excluding our was to back States. from variances, of Adjusted second and P&L by represent QX organic United XXX from divestitures, for which to acquisitions the margin $XX quarter WATCHMAN of improvement million along procedural our our reserve. return continued impact next-generation return in contributed device top X.X%, discipline continue earnings the through related as is QX third our slightly or launch outlined FLX negative declined XX% for headwind year, consignment rebounding pandemic. with the A strong to lower the the line consignment. by of results over WATCHMAN the includes offset call. sequential driven per half

In within expensed the above As manufacturing on the production with of P&L that be resulting plants, XX% and in our turns. capacity were levels month inventory variances of reminder, below will levels capitalized in recognized QX quarter. that production were period variances QX, a a XX% corresponding over sheet were inventory material unfavorable and balance manufacturing to our majority X within deceased the in

Looking be QX to forward, in adjusted margin line gross expect XX%. to we continue QX approaching with

increase R&D P&L QX some operating point our Third WATCHMAN was related XX.X% while margin XX.X% the slightly the the QX basis, XXX and margin impact X.X%, SG&A to timing to operating investment had be basis adjusted we is WATCHMAN QX, will of these ahead consignment GAAP and adjusted We to transition. in in and Based to and similar of On million related litigation-related intangible quarter spending, was asset excluding and or expect recovery consignment of X.X%, quarter continue a $XXX prudent adjusted and investment results, expectations favorability to expense. related respectively. increased both a also spend on XX.X%, headwind a to quarter. adjusted quarters. the revenue throughout trajectory operating maintaining our million of fourth includes margin the a continued Apama excluding discipline. This given negative impairment, rates $XXX primarily

the of our RF discontinued on As Apama the and development legal reserve Mike I'll we've detailed, provide update shortly. an balloon,

line, below to changed million provided at our year the Moving to the the from $XXX have interest full million and call above our QX be $XXX year. not other of range the adjusted expectations slightly for expense beginning of

Our third $XXX This efficiency. Adjusted adjusted operating reported million, cash share. of capital and years this our IRS earnings benefit driven flow free improved strong in basis for quarter completion the in and tax non-cash tax by to $XXX a an the of adjusted million, which working the to minus XXXX on by reserves. a for was GAAP per $X.XX margins $XX free driven XX.X% X.X% basis, and was to includes quarter's million on an XXXX cash favorable examination was compared rate our a quarter benefit, position resulted flow

billion Total XXXX, XX, of facilities maturities. maturity prudent hand credit including debt of billion. term profile a near cash September on $X.X and we of available no liquidity, with As had $X

the $XXX loan. for leaves The During million. remaining of term we with $XX our quarter, maturities quarter expenditures the were million May the until on capital balance no us XXXX prepaid February third This debt XXXX.

With adjusted certain full for long-term of $X.XXX high to financial continue billion value our investor $XX operating cash billion a of of for $XXX flow. into with highlights, expenditures relations We to to related our X.XXX respect fundamentals XXXX capacity fund needs closing, we approximately meet coalition the growth funds, full individual outstanding outlines growth capital have payments expansion, improvement XXXX a sustained strong, earnings reserve moderate year to expect inclusive strong qualified to drive targeted focus to In booked end made website plant which weighted expect of check margin remain primarily double-digit as million legal our adjusted mesh, remaining the on our and will have Susie, changed, for turn million And million in and related approximately back by reserves, and average we programs. XXXX. QX the and approximately detailed We and $XXX with QX, businesses projects share our Q&A. cash and expansions ended very and state not outstanding per QX billion onetime peers, year fully claims plaintiffs more pipeline it the operational leaving million and of that, to quarter Please claims. made fourth general. shares organic of free diluted revenue results. I'll XXXX at who X.XXX $XX QX Year-to-date, attorneys settlement we with

Susan Lisa

as as go the Andrew, to questions please possible, for one Thanks, to XX enable limit open us to Dan. and In related it ahead. order up one take next question or yourself let's Andrew, to so. minutes please many follow-up.

Operator

Thank you.

[Operator from ahead. question session. first of will Please Our Instructions] go begin question-and-answer We Lewis Morgan the now David Stanley. comes

David Lewis

good morning the question. Well, Great. taking for and thanks

Just and for Dan. Mike got follow-up then for a one related

this just want come to back So made. Mike, device to high-end comment you I

ability to X% or to X has in And you the CRM confirm that changed. just grow, say, you, dynamics for frankly, of market I points grow I it's So light IC inspire concern also then, think MedTech faster. to the a whatever and let's peers do X%, TAVR that's want to that that,

points above of that on or you that the the could business things gotten focusing Dan. plan. giving are on that, algorithm - X follow-up focus then Maybe above below achievable? plan And some X% pieces that are still X% is the segments the you are people you maybe of or for clearly, a have So have have whatever confidence of have that to I

Michael Mahoney

continue our done David. very to peer number our We've we're Yeah, for Thanks and as ability quite out morning, confident high launch to for are at Good we so group. grow the ‘XX in XXXX the round of a of question. our end product cadence look to and exciting. years

across you multibillion-dollar launch if and larger increase we've as than based a highlighted WATCHMAN we schedule, that businesses And see originally why our and seeing, TCT, on in Now FLX, look is believe our we we FLX laid market that at out market. WATCHMAN the anticipated. the we're utilization

every don't approval PI in I businesses. to Eluvia the Ranger. go about very the launch out strong strength a with have but seeing our cadence. excellent and for business, the of and stent both really our digits We're across We So quarter MedSurg want single product BTG, pending Oncology business, the we of grew Interventional in upper growth which led by actually talked

Our our we share. we single big to in Europe both Endo SCS continue the business, momentum of with of urology use scopes, launches and business. in have And two DBS, neuromod where the take in our launch

neutralize just continue prior ACURATE growth believe neo the have that product discussions across have bag of based Clearly, a we XXXX. WATCHMAN look delay to And the something tailwind to we the really that's But incremental rich certainly could that its and pull wish we FDA. launches. paclitaxel, and the if portfolio, slight the try those on So two own. we'll on we you ACURATE with our have approval with elements in, to at neo there we would of liked

the we balance a very have And of strong. cash strong. good. is quite deploy our that and product the is VC growing have is market, flow cadence we portfolio sheet And to history against above launch So free and

David Lewis

if helpful, of ‘XX type then, here, you, that growing fourth we ‘XX, growth? get lot single of And everyone just fourth And a digit is growth the any Streets on as you at going for but Dan, year. low quarter more of can focused margins know you'd kind as is offer the of bottom I in next look, wonder comment models the Very Okay. head of assume on parameters confirmation much. reality a percent the I line I numbers, Mike. us into top, XXXX. very for idea we quarter. so Thanks maybe for in we're next not year? then to Should on but of appreciate those specifically, consideration growth kind on double-digit our tax ‘XX

Daniel Brennan

David. Sure,

So just to QX, relative grow. the is to very simple. It's commentary aimed

we another. So one be whether it guidance given number, relative to a specific haven't or number

deliver give middle our commentary annual our I as margin is So the which the peers had, commentary to growth. and end my expand it's per again, operating respect double-digit the goals that, we're at that. that XXXX, mentioned, can't say belief closing the to grow the prepared With always share caveats Mike to except high lot that out with of same really that of fourth now, earnings operating I right we've to adjusted of plan quarter, the process COVID probably grow and is obviously, in aiming to in you to a the mentioned. on detail right We're

process, XXXX really think and get working the what So know We're through be, and no hold. let we give where you to change a to we of might when there. goal would sense we you the call the February are

Operator

The next Hopkins America. question Please ahead. go Robert of comes Bank of from

Robert Hopkins

Can Thanks hear and okay? good morning. me, you

Michael Mahoney

Bob. morning, Good

Daniel Brennan

fine, Hear you Bob.

Robert Hopkins

great. morning, much. Thanks Good so

are weeks was Mike, last the comment few wondering confident for on impacted you you business. that you I the WATCHMAN? just could in question. comment I if of degree to how But has short-term apologize oriented quarter offer So start, the which COVID therefore, the And pretty on the to in significant fourth that at flare-up global

Michael Mahoney

Sure.

an are So globally. COVID managing hospitals reads obviously, uptick the job procedures. there. you've doing the we - I an would elective performing still of while Everyone say seen amazing newspapers

you've growth potential interruptions sequential the of certainly seen third We're fourth So there. that with the of had the mindful in quarter that we've quarter.

COVID doing watching and aim significant is caveat aim we're the that our else's. in the shutdowns nice the like – in could seen quarter that and patients quite and obviously, quarter and goal the improvement trends, month-over-month improvement third strong there there the impact quarter. everyone in our Hospitals we managing more peers managing also put a care return to to system our if products EPS. But hospital improvement to Scientific we as job WATCHMAN sequentially and obviously and our And Boston spend, increases, we've So you COVID fourth saw and in continue grow need but on it, the we is fourth drop-through income dramatically far, the provide. obviously operating to, margins the so in ex-WATCHMAN. that, pressures We're month-over-month. improves our But excluding see more better like

So to that trend expect continue. we

Robert Hopkins

Okay. the double-digits? you course then quarter? recovery what just the I over And like one said curious, you – on in quarter. just comment. rapid saw WATCHMAN remind Could Just did of said product you WATCHMAN grew think the say sounds very a you Great. me it in you it

you. we Just specifics get any wondering if more details? Thank or

Michael Mahoney

in think, contracts – longer operators, I allows it results customers majority we script, just model – the Yes, move tie aim up grow mentioned and quarter. shift, an our the third this in highly us to by majority double-digits it's to quarter. that early of premium. it FLX complete end good. did And the gets term consignment The And excellent switch high smart very we model at hands a want, price by that been really And with have as which been second an appropriate is launch. year because it's share they of – consignment committed over our in

is extremely growing in launch bounced well, double-digits. third and going very So quickly back the it quarter,

Robert Hopkins

Thank you. Great.

Operator

from comes question Please Kumar go of ISI. Evercore next Vijay The ahead.

Vijay Kumar

synergies here annualize Thanks bigger XXXX, XX%, think question. for back and BTG? a for you on helpful. Hey, you double-digit X here, XXXX, And numbers last year. guys. I'm close that could on maybe it's think, excess, I be are included when guess, right I Mike, we next taking little revenue modeling [ph] It X the the my but perhaps, the streets comments, curious because the in an BTG? getting growth us at XX% to give a where in look XXXX decretion and is was or deals question to in the algorithm update I base earnings seems with would algorithm. coming any One, EPS, better update double-digit picture the

Daniel Brennan

Dan. of Sure. think we're add I committed we were I Mike now Vijay, the this is when benefits even can can did than certainly that potentially deal to we Relative it. as more and BTG, well. start to in

mentioned Mike were highlights single you growth, forma in you the the within pieces look it, medicines, of and quarter, at the they If digits. interventional for when one various all pro the in high

And so global of are, middle where that's obviously dynamic. a the we and accretive in that's to

a that. of out XXXX. had that million about $XXX now $XXX lot we total hopes that we'll cost. in BTG good at believe we're $XXX that mentioned talked the believe, for of million exiting whole synergies in total So also We Mike million, on well, get we synergies,

upside. be actually will planned had we that synergies revenue the So

I comps, us we at not relative going to XXXX. driver most I'm think, we comparison, for relevant a as end out there will for numbers XXXX, relevant being So going revenue think it's on will look forward. the that the compare to are a at think, specific mean, is it, XXXX I most that, comp BTG the XXXX, going obviously, comment versus XXXX, when but growth to have. I that will be to you but we look to Relative up it your be year. I different nice

Vijay Kumar

on within then, Perhaps about matter. reacted structural does on like what I you feels have neoX, talk you. post-ECT, could shouldn't it matter? Boston that comment but mean, maybe it it hearts Scope look thought Mike, stocks should like for with Got Europe? maybe X, structural the And just here.

Michael Mahoney

Sure. Dr. right now. we Meredith can But are make launching some additional comments. – neoX platform - our scope just

pacemaker so rates, good system. quite as the our PVL EU is very platform, And comment study that improved shown is or And low know, It’s can going that hemodynamics. U.S. got it's for our rates, in enrollment second-generation And you as Ian the well Meredith second-gen that, very our obviously, in valve. further Dr. on.

trialing So in half we’ll to we're Europe. the that of hoping COVID, that ACURATE accelerate the continue for here we're And COVID we're in quite bullish the hopefully as overall, on platform. US in neoX second as

neoX. and platform, reiterate the that confident team ‘XX strong ACURATE to we'll in So we're with European results continue that deliver will

Ian Meredith

to reinforce Yeah. just Mike, comments. your Thanks,

neoX how physicians comparison you skirt XX% PVL has for experience Vijay, most significantly improved to performance that I comparison Scope recognized of adjudicated recognize panel versus the it physicians significant is that in They Most core had platform TCT use think the who this neo discussion, panel larger heard at a a and [ph] X. ACURATE data know first generation as the appropriately. the and with sets. on of the a third-generation and independent product ACURATE

So of I going think influence don't use ACURATE the it's neoX. scope, to

Vijay Kumar

Thanks.

Operator

Fargo. comes The Larry Biegelsen from next ahead. Wells of go Please question

Larry Biegelsen

guys. Thanks taking the question. morning, for Good

heard Just high for thoughts. X PRO, an at still two love a non-inferiority pivotal Evolut and Thanks sense like what the TAVR Vijay, I'll dunk, U.S. And But there TAVR Can level, I'd and your X, platforms? trial. the looked and Actually, confidence regarding SAPIEN you TAVR. Scope to with X end to it to risk ROI the your the guys. neoX does able a clinical perspective seem primary trial and And to questions X on then it It with that. for we've at develop result couple I make you, points. doesn't just given your seen impact. from Ian, at the comments a questions, follow-up slam the hear I've to leave be given of neoX Mike, talk being of commercial in about pivotal some look show between Scope and a safety X? and U.S. but efficacy taking

Michael Mahoney

start with Larry, I'll question neoX around our ACURATE the confidence there, So perhaps the about platform. second

the As neoX PBL with the different is to study. from Mark ACURATE said performance, significantly ACURATE saw we good CE neoX different before, we as the larger and

the in out we US certainly ACURATE ACURATE the so will – saw CE play out believe of neoX Mark we that will study play in what the And in data study. neoX IDE

are the with now. working So we FDA

that Scope the confident. forward. remain consequence believe follow-up the Scope study, will that but of and plot a longer X of we require X As part We path of we as patient results to

Larry Biegelsen

Thank you, Mike.

Michael Mahoney

in has results sites Lotus portfolio, the market using the at opening spend in sites challenging it the new across had the opportunities. but for looking two our that using In And in are product makes exercise and are sites most we've where our obviously always our a quite strong the that been given strategy first seeing valve the we're sense, portfolio are the us the we're investment using the quarter given US pandemic, regularly. Lotus US, on

in So we valve do makes believe the we're ACURATE neoX two and launch that sense, strategy the Europe. excited about

Larry Biegelsen

you, Thank guys.

Operator

from comes Wuensch go Joanne Please question Citibank. ahead. Next of

Joanne Wuensch

Can Hi. okay? hear you me,

Michael Mahoney

Joanne. we you fine, Yes, hear

Joanne Wuensch

Good Two questions. morning. Excellent. sets of

your I to in curious, the quarter has operating And First fourth is with why the you'll what have fourth say some not one adjustment? can versus margins the quarter. of deal I growth sure third for I'm adjustment you make fourth because to the commentary WATCHMAN improve quantify quarter want quarter? the in would ex-WATCHMAN

Michael Mahoney

take that probably can Joanne. one, I Sure.

first. part Second

be to We expect roughly it similar.

reserve top for million line $XX sales saw adjustment the you the So for transition. term

in then obviously, main the probably And that was of how out of – I but had we we on quarter, the in would we And how say. similar, at rolls QX margin, terms better driver operating that fourth so it, it is roughly than anticipated. that as depends look

term from basis So point and XX.X%, that the WATCHMAN reserve. obviously sales impact negative included XXX

into what a impact XX probably, WATCHMAN a margin QX, the a fourth the in being the gross pretty largely included reserves. we a XX.X% head place you operating margin quarter That basis in quarter. negative is margin and it's So would to believe saw in good We from we're be. were gross the QX standpoint, similar that range for good From that to that into kind in quarter. third back range as again, of on point

XX% we're quarter. That's margin probably P&L in gross of pretty similar. the fourth out to would So the in rest range. should settle the that where XX% And look

the spot, in if it's adjusted the for operating to similar I QX. fourth So quarter, is think, margin good a

Joanne Wuensch

is Boston Scientific. not exactly How that products Okay. many may through the picture, or TCT be may a at just – And this? this Sort is is I largely reality? to And going have going of this do much you and of after not planned. how so there that everything perception, big an then there's, much is how is pipeline, meeting of happening as issue that are the execution go it say

Michael Mahoney

and for a the Last year. – X.X%, we in look growth years we each Sure. with Yes, sales organic I and of about if row. overall, We've number just think overall a you execution based product no at obviously, seen each XXXX schedule. up put the impact accelerated year, launch ACURATE a very we're were the we've in There's on doubt U.S. improvements quarter. COVID And neo in delay strong for XXXX, we of with strong disappointed with that up that the set

laid benefit excited think think those the X, of Scope of out we're which launch, neo. about are But Scope Meredith I disappointed we X, diversified. the Dr. but highly some now the ACURATE Boston the impact in is I delayed has of neoX reasons. we're And Scientific

of growth WATCHMAN. the at look You

really in of portfolio, years and our down growth of the the you and CRM and and continue You weighting and increase in markets for neuromod, promising weighting the diversification many business. to look of our we at the the the improvement PI row, our in our a with And look other businesses significant those at across We've, DES our that given EP. of URO BTG, business trajectory growth businesses. also growth growth of see Endoscopy, reduce

to as and wish to as we have beyond. company the excited and cash look scope diversification overall clearly So you about if margins, improve free accurate at and we've enabled ability the the flow would been well we're strong the continue of ‘XX the that But results different. execution

Joanne Wuensch

Thank you.

Operator

Marcus question comes next Please ahead. go of Our JPMorgan. Robbie from

Robbie Marcus

speak Thanks you the current for I taking wondering was my to if could Maybe or question. Mike, environment. M&A Dan

reason private sheet on balance investments than we should past. the in on the M&A? looks could also You've Apama? of discontinuation And had lot How the touch better side, the for a been about you if think of the it's

Daniel Brennan

Sure. I little challenging. and well. Mike comment M&A bit is can The can as a Again, start environment

the referring probably you're market. think I IPO to

some with invested able we them public companies. pretty gain, we've it's is that's and invest the potential some side acquire go of upside for our VC So why it obviously valuations. Obviously, financial companies lofty the those We but to other these. seen the not acquire the portfolio, nice on We a in weren't of to within them.

short-term does it present seem challenge. to a So

VC companies portfolio. over in our have We XX

we So to relative and from, there's lot And a to cash have that we'll in M&A be goes. opportunistic know, general. the ready see where as to we and you have choose available –

time that over be So we still the to optimistic M&A get to top done that able have. story we're some to and good line solid going add

Michael Mahoney

Yeah.

the shareholder of disciplined want in pipeline but pay we'll drive to we be and price is certainly value. opportunities, the there terms that think, to M&A I of

platform. made we we'll certainly plan to do decision acquisitions portfolio, to Apama, given the continue XX over tuck-in and do essentially, So and the next timeline on impacted anticipated we that, a the made Apama decision few there months. the On program with our investment faster the technology discontinue new in than development that the clinical We delays really along Apama IRE. COVID, developments, the with to namely

Europe. sorry, investment full option we to to significant mode we're in provide XXXX. we're made fourth in the launch growth about And for – have will we our IRE quarter, very significantly very be in So an our ago. encouraged investment we six that going We're on have company. cryoballoon Apama continue point, That to should And our in purchase [ph] our that force-sensing that's an catheter. which in on bullish invest now the stable some years and Veripos in

market shift, for future. strong position the believe those very platforms continues to the as we're we So in with

Robbie Marcus

And maybe quick Thanks. a follow-up.

that? like behind visits how by and discrepancy up listen to As speak patient filling to to them? is geography? up your volume able to scans sounds How are a Are Thanks. it filling continue commentary, pipeline improve. there you behind trends the Is I

Michael Mahoney

region, it state. there few globally, my call. Yeah. script. by a one comments I by overall, difficult in had I say, to differs a would It's

the the patterns in I funnels, U.S. maybe And quite say. strong. normalized new normal, is China very states is in essentially some to Some would patient XX%. referral U.S., have back Japan and down

So it the world. really around varies

if it it's to were you out, think down. all net I

slightly. state it we're by X% globally, varies that, whether programs So we're patient down call new XX%, normal and not referral quite and but or down country. to down down. really And at it's it's by It's tough

Robbie Marcus

Appreciate Thanks. it.

Michael Mahoney

Yeah.

Operator

of Next go question Wise ahead. Rick comes Please Stifel. from

Rick Wise

ask Maybe success everybody. that be? you accounts highlighted what's opened. that and and of go questions early I'll Is EXALT-D, expected? aside Just expected? of Is what couple a two. ahead morning, product XXX And the post-COVID, updates. just Good to you Again, what Mike, is through the you next. where that just talk you wanted and COVID maybe us other

Just maybe curious, What's we haven't and in time. enrollment? terrific quarter. And trial SENTINEL talked obviously the had there talk long about a program a to next the S-ICD

a seems wondering, little What's Just competitive but just Scientific noise. on it of next that some from random, lot. Boston ledger? hearing a side the Thanks

Michael Mahoney

Sure.

EXALT, and S-ICD. So SENTINEL

Rick Wise

Yeah.

Michael Mahoney

the Dr. Meredith in pitch-in middle I the here. get

that quarter, clearly much here. a with EXALT-D to we don't bore six we’ve third really news lost, EXALT, in the picked it, on with up quite bit really But months, But too four of momentum. So call encouraging launch. I you

global So more to customers U.S. XXX approximate in we've and in opened our our Europe. the accounts, we've had And accounts. access

openings, platform. new team account training the of increase to that a in we so, the really to And strong really call starting progress, XX last had tailwind. has utilization and XX days nice it, And made also

TPT new was strong the track. would with I tailwinds quarter. nice broadly, third won't Just But it in off reimbursement say the tailwind I through and had we get that. for a with EXALT,

a in EXALT, us bronchoscope. for we driver for looked the XXXX, track we're we scope recently on growth for also and have nice So approved, a surgical to be at,

So multibillion-dollar that's opportunity. a

of this just great with reimbursement Scope headwinds and on X broadly with X. Scope I'll reimbursement, few in out news, Eluvia, not with we picked with the quarter. because had with call Just only some the but also EXALT, a We

these of really the reimbursement. platforms the evidence to So additional it demonstrates support I think clinical efficacy and the

Dr. maybe to Stein. I'll Sentinel Meredith it So S-ICD from Dr. comments and turn over to

Ian Meredith

TAVR underreported XX% than Thanks Sentinel, know, is actually to the that's and you procedure. actually a Rick. debilitating shadow condition more critical With actually We're you the the accounts that using a that study protection Sentinel, the that having TAVR. in having XXX know ever is prove right We beyond for respect were pleased prospectively. as for designed is of protected to this strategy, the that are a strategy devastating and than now of is sites worldwide study the with in we as mentioned you right very a question, that believe TAVR. more trial doubt Shocking

it's As stroke. a at patient know, clinical looking study X,XXX you

the continue that in that, slowing we XX quarter, in up. have trial that despite of second and COVID. site new third and We continue will Obviously, activate ramp sites in activation to sites early there some but to was the believe enrolled

the single looking almost forward important the I'm this in that light critical to pointed that protected field, most of everybody data TAVR trial the results prospectively. in trial. this evidence. glad of planned the as And we're and a So study study we It's actually to

Michael Mahoney

Stein, comments S-ICD? any Dr. on

Kenneth Stein

here. Yes. Thanks quick a lot, Mike. I'll And be Rick,

very we're think what I we're growth continued S-ICD. the seeing pleased with in terms of with

be show know, As medicine published out on indication have in first-line S-ICD a considered just touched for really trials, who primary don't patients straightforward group antibradycardia remarkably recently was major results indication reported the published X to and the therapy we with pacing prevention of untouched. safe that pacing. I ought in or broad clinical for as a the antitachycardia which pretoria convincingly of procedure is think you the Pretoria circulation,

that pacemaker, clinical standpoint modular be designed pacing rhythm of exciting antitachycardia the that able development we which next to in our to think, still from on comes brady year. can I I track launch is and of think first And with half both what to pacing. deliver our trials out and management is communicate S-ICD with very empower is backup cardiac and concept into next the push what's,

Rick Wise

everybody. Thanks,

Operator

Next go question comes Matt Crédit Suisse. ahead. from Please of Miksic

Michael Mahoney

Matt. morning, Good

Matt Miksic

Hi. okay? hear me Can you

Michael Mahoney

you fine. Yeah. We hear

Matt Miksic

Thank Terrific. you.

just if and channel. ASCs I could, on the exposure of So your questions, to a couple outpatient

You've in remember talked range. correctly, the two-thirds of kind I if that,

that? pre-COVID some And had are – I metrics one lines If like maybe of performing same businesses how business, could predominantly of or then are levels in just on those any topic. pre-COVID other the follow-up inpatient just those related comment you maybe – the how quick on terms percent of to of

Michael Mahoney

that's our been I COVID. – quarter provided, call, as earnings during by terms Yes, Sure. think in maybe outpatient. our versus And we roughly very inpatient of consistent the first the recovery business mix our really of

where outpatient businesses, stronger we not orientation. our a across So, surprising had

You've neuromod. seen with recovery and endo PI a there and urology, bit stronger

it that You or quarter what, neuromod, saw was demand came number quarter in and XX% dramatically down back in second in setting. the XX%, third crazy patient of some because like,

of uro, pace towards endo, recovery, quarter pretty to consistent the PI, are at So you lean really, CRM little if interventional neuromod outpatient with the are look inpatient. more results bit third oriented setting and and And cardiology a that. more kind

Matt Miksic

be over That's months we're some if the to codes could, ZIP couple August we're what bit tighter, next little I And facing that some because or as see to all super areas potentially of helpful. the hospitals looking or some see booking have if in steer I trends and folks or areas just current that to might terms we we at those of did and over getting version might of think from then anecdotal that. in if country. wondering experience and like states in counties we trying in saw July away capacity in picking a and continue of of the getting, QX cases several And regions that going if next in like inpatient entail I'm and be? you how what open happen or the comments that cases as from months, things went wondering – the that any

Michael Mahoney

the Yeah. scenario are It's of a where tough matched to call. I XQ mean, we don't see again. results

improvement versus see neutralizing a each quarter improvement, quarter. seen you we before, happening. the COVID. growth, we've darkest saw, negative time that the obviously, really And So don't mentioned And as one-time I since for strong X% of third sequential

And so to the patients during Hospitals it. capacity hospitals additional surge. COVID are and for better managing built good doing staffed COVID job patients the electoral procedures. manage remarkably of have They're a

than they're So ago. winter, I six are eight better parallel. a I to manage hospitals potentially in they the months but think believe, also it's much able be electoral prepared better to to challenging going were it, procedures And manage to

WATCHMAN before products, surge. the that continue XXX% isn't referral and progress So still new But great to pressure getting – so in with launching pattern having commented that, we could as at that still we're seen some COVID and patient to likely continues plays growth under margins. our COVID new be aim excluding monthly, we'll managing drive globally see impact despite for consignment. But improvement the we how We're to COVID fourth strong approved. in we've and we'll sequential the and out. challenges EPS, the products We'll the continue quarter

Matt Miksic

Mike. that. Thanks Appreciate

Michael Mahoney

bet. You

Susan Lisa

Last question, Andrew.

Operator

of SVB Leerink. Thank you. ahead. Antalffy And will go come that from Please Danielle

Danielle Antalffy

Hey, related questions. a Thank you good product so for morning I much two in squeezing everyone. on congrats me strong Mike, have and quarter.

the So, competitive the first competitor questions. to mode to financial of through are will current built On there? that on those I'm WATCHMAN, about hospitals, are okay feel my the one have things investors be now. the hoping the duress. constraints a potential growth much. about market. perspective curious but revenue around could what hospitals second coming that probably is EXALT-D, business meaningful maybe just that And just ultimately how should be, are from it you WATCHMAN financial their ask And you've quickly attention paying trajectory make And so continued I'll at I my us the was to can given a work that outline contributor Thanks

Michael Mahoney

the to capabilities? speak Sure. Dr. clinical want WATCHMAN to Stein, you do

Kenneth Stein

XXX% but great think use FLX And with the with against of familiarity generated results first successful and data the ease just strong Mike. the its it a at we're FLX on of we've with approved very year. on that that clinical seal WATCHMAN, combined I clinical meet the very didn't trial showed physician I and and seen Thanks any we one think, competition. Yes. pleased is I actually endpoints, the Danielle, device, And basis all, response the of think device with

use launch a safety what line for recently a think is trial, fibrillation. CHAMPION spite patients which We enroll option the imminent the to line novel on in of as portfolio device, against WATCHMAN continued has know, I we've of is of trial, the ongoing science head-to-head or first trial extends and the of well, continue efficacy of as first our robust device most to the then And therapy the which a following clinical announced which as coagulants. you the push of the COVID device

Michael Mahoney

Yes.

and switched model a build to reasons strong is appropriate moat our model of obviously, use on us and changeover Stein to why at And the supported the price primary driver longer and obviously was to consignment that's first. continue the just the one allows was the that efficacy So, uplift. the consignment Dr. clinical model contracts clinical high And drive efficacy by also that penetration committed safety to the to we globally. commented and the we business term share easy the see then

setting believe the outpatient in room that the think we breakthrough a us. smart the for we the setting, did EXALT-D move for the On outpatient which is EXALT-D, DRG sense status, makes in So, -- get we platform. inpatient that's mentioned the there's with setting, additional with in I helpful. that before, and reimbursement very, And very the

studies infection. Endoscopy in health capabilities So, is reducing It's as that drive each benefit EXALT-D. will EXALT-D economic terms team of month drive And our more of continue the our team utilization the how passes. more and clear to gaining care physicians to with see of

be So, for growth driver, know a and in driver will be we nice a us nice XXXX. this think we it growth will

Danielle Antalffy

you. Thank

Michael Mahoney

you. Thank

Operator

to over any like closing question-and-answer Susan our remarks. session. turn I concludes Lisa to This back conference would for the

Susan Lisa

now to replay joining. the it time, you, we'll details. Andrew and thanks, turn everyone, your for and Thank for Andrew, appreciate We back

Operator

X A access again, XXX-XXXX you. XXXXXXXXX. accessed November XXXXXXXX, in dialing (XXX) be until XXXX, hour Thank (XXX) and use for or X, X call by code concludes XXX-XXXX this may X This conference replay call. today's

you. disconnect now line Thank time. You may this your at

Boston Scientific (BSX) 28 Oct 202020 Q3 Earnings call transcript