BSX - Earnings call transcript Q3 2021 | Boston Scientific Corporation

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Operator

Good morning and welcome to the Boston Scientific 3rd Quarter 2021 earnings conference call. All participants will be in listen-only mode. Should you need assistance, [Operator's Instruction] After today's presentation, there will be an opportunity to ask questions. [Operator's Instruction]. Please note this event is being recorded. to Investor conference Relations, like Tengler, to now President, Vice please would turn over the Lauren I go ahead.

Lauren Tengler

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

comments have posted be of Filings. financials as XXXX Investor and provide under copy X QX, the approximately including call used a questions. as future focus well our website outlet take reconciliations we'll that the on Financials will full-year more the the guidance well regarding We in will QX performance, your The review as hour. for for will Mike release, duration of QX Relations to measures and our and heading as catalysts XXXX section of our of and the business, this then non-GAAP the details call today's quarter, morning's guidance. Dan his

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

I are excludes which closed August, net September versus operational organic Relevant begin, and Farapulse, as embolic BTG closed Pharma, global XXXX and revenue Vertiflex Medicines, -XX respectively, for XXXX, and QX-XX Interventional Surgical, a portfolio, the include Franchise, closed Preventice, further of -- respectively. recently like revenue second we mid-August as acquisitions, than of in August and expected QX well growth XXXX, and and for of and acquisitions XXXX were Baylis Health period Medical of divestitures March, quarter growth would are which that currency announced XXXX call, which and organic XXXX, period which on sales. respectively. everyone of the in there Divestitures and fluctuation full include microspheres Before of acquisitions growth Xst, to Intrauterine impact in Medical on respectively. and the remind in foreign divested excludes Devoro May March Spec the Guidance which less excludes XXXX and comparable Lumenis in BTG which close to

refer deck, to For specified, found references which highlights X on information, are On more Investor website. financial operating please unless revenue, Relations to and and may otherwise our be organic. Slide call, our this of all sales

comparisons impact time Finally, other the identified anticipate, the results market of new believe, include, of growth by similar pandemic laws, note goals represent other between operations estimate, the about of and statements expect, product may, financial within which by among launches, COVID-XX words and may words. and things, Company's which periods securities opportunities. federal clinical savings the They are growth trials, contains COVID not in growth results. share, material and acquisitions, cost approvals Statements COVID-XX upon and our this X% meaning ex impacted the And to X% call forward-looking like be pandemic.

flow use, and expected earnings. financial and margins performance cash Our our sales including

point, rates, and Risk the recent R&D expenses. over it Factors obligation most cause as section those our spend well tax other date SEC. such as described this XX-K differences any As that our XX-K and I These turn include will in to we Factors today's filed of of or may and subsequent speak At to update only for comments. Mike them. the with disclaim statements intention

Michael Mahoney

surge joining for challenges in I'm everyone you proud team’s global of Thank third the us Lauren. today, quarter. by presented execution various despite our COVID Thanks the

anticipated variant were deferred. procedures by more than impacted surge as globally, COVID we was electro the quarter some Delta third The

we're and goals. global well-positioned our third long-term this we increase aren't sales we on vaccination achieve wanes, with to continue sales rates results, quarter's are While margin EPS targets, we as delivered our confident and satisfied and to quarter COVID

be strategy higher tuck of growth the XXXX. Further versus Company versus leadership, grew sales laid about XXXX, Day. excited versus in category entry We recent our continue and and adjacent opportunities grew and to confident M&A. markets quarter XX% while organic we out into by our Total XX% third enabled operational at X% Investor sales XX,

high in guidance temporary Adjusted XXXX, Delta operating as versus the improve globally. impact end of the the Just and of XXXX, XXXX, of XX.X% across margin saw below X% launches, our procedure EPS expectations. robust quarter Despite executed we broadly of versus Quarter clinical generated versus portfolio. procedure XX line adjusted evidence XX% strength volume of XX% new with impacted product volumes, and Third range and to in continues our at was grew our reaching guidance third $X.XX XX.X% $X.XX. to to QX

XXX organic versus organic our and third-quarter million. for to And from fourth Compared cash to impact We growth EPS, of growth our cash We're XXXX, and and with updating and both XX% be of of of target shortages. flow Compared continue growth we XX% million growth quarter revenue XXXX. organic to X%. cash assumes ranges XXXX, target full-year for with sales staffing full-year X% full-year to to free we of and XX%. XX% procedures to revenue revenue adjusted fourth-quarter free to of X% pleased our COVID which flow 'XX of level Fourth Quarter XXX flow X% guidance some generation to of XX

outlook, QX both more And adjusted and Fourth to in $X.XX details to$XX. $X.XX. on EPS revised outlook. XXX sales and updating from along results performance a full-year is Quarter Our and will Fourth our Quarter year. highlights range this 'XX 'XX of EPS to additional adjusted on estimate provide we're with Dan including And our acquisitions comments I'll EPS contribution revenue the provide

notable from grew impact Delta, on majority [Indiscernible] strong -- the was emerging basis solid by grew PI, regions EMEA grew Endo, market [Indiscernible] fueled [Indiscernible] XX%. operational utilization, in delivered Axios. Operationally, and countries versus in like driving and both Europe EP across double-digit businesses and Within performance X%, with XXXX, quarter strength of QX and Asia-Pac U.S. for 'XX an Africa product grew the NeoX X%, both growth the the growth ongoing XX%, despite new We XXXX. launches the POLARx, and and sales third could

impacted was pandemic by vaccination decline. increase Pac the XXXX COVID countries - and into very - related reopening Asia strong. heading and are Fourth encouraged within lock-down in Asia as remained rates Pac cases a growth as China parts though Quarter in of We're region,

as of POLARx continues in XXXX. new share Drug-Coated grew one versus excellent XX% to was state results as October. Japan advance emergency Although and throughout launches, in position well achieving deliver launching Quarter, China product number our able Ranger Balloon, to the we're Third sales with

as and virtual and PCI Eluvia us We continue across to to role physician the launches with portfolio like like expand allowing well IVUS. also driven differentiated by product Axios. new as see momentum our products training a Digital reach enabling tools and complex imaging, playing are

franchise resume in space initiate space We Health trials which double-digits of support flexible broad portfolio continue X% resume stone stereotactic removal. we're which to versus businesses. trial, pelvic patients is the excited on the that LithoVue view strength to or the XXXX. quarter. and the in growth September, within some grew reducing receiving additional the laser, of two global body, and radiotherapy Sabre the provide dual expect in And to versus for Prostate disposables with China sales this clinical late health XXXX the business now in our double-digit urethra The toxicity and to continued XXXX The commentary this grew from which to therapy will closed single-use prostate Urology kidney portfolio compares offering both cancer, acquisition complementary the XXXX, VPH. I'll and stone trial units. MOSES drug organically and and full-year spacer effective treatment LUMENIS expands scope and for examine vapor which Urology and include our

portfolio Our wane. third organically were electric pelvic health endoscopy, But historical grew shown In sales by have within the COVID a procedures as recovery in Delta. surges versus impacted growth surge quicker trends XX% quarter XXXX. the

including market-leading hemostasis to technology Axios, endoscopy and scopes. portfolio single-use continues resolution differentiated benefit from Our ultra, clip, launches, global innovative

During the capabilities. with clearance quality with and image are now received U.S. this and and in Europe FDA quarter is selection both EXALT D physicians available pleased

make launching the features and X.X improved to they're with enhanced design, D which physician D, ergonomics. continue EXALT We EXALT progress

to approval as by have NTAP have reimbursement approximately October versus In we're of XXXX. of sales launch versus the -- pleased -XX, now of Additionally, XX% supported rhythm with QX additional for management ERCP SICD enhanced SIDC cardiac grew qualify were digits Xst. flat procedures mid-single electrode. -- sales organic

Quarter of that course both growth of We market. course here trends and likely the lagged improved first-half, here While on believe pacer. across -- 'XX defib Third over

hard differentiated with our implant technology, implantable growth and continues share programming XXXX anticipate diagnostics and ahead, to early exiting logic our our physicians SICD monitor, the XXXX we year remote Luxe supported into offering. pleased are capability. and Looking by as franchise stabilization cardiac DX, gain experience, Within across

business driven and sales broad ECG up versus preventice XXXX growth differentiated track international International innovative POLARx strong occurring Japan. with above first in approved portfolio by by and POLARx cases driven Electrophysiology to ambulatory pro by full the including on in deliver in on versus were sales growth STABLEPOINT. Japan October. the Our year for recently XXXX and was XX% the the basis, plus is well forma remains both fueled market portfolio. organic a XX% Europe

the which represents U.S. step in an an expected XXXX. FROZEN-AF launch POLARx the enrollment, In with addition, bringing to trial in important completed

commercially PFA our in We and is limited technology, we're Farapulse also seeing launched in number acquisition early in a a of quarter, which the accounts available closed Europe. usage third only strong

of further access. Finally, to a novel strategy Medical, enabling we category our acquisition announced Valence of leadership left our heart approach with

XX% indiscernible] used in left the side and used is the appendage U.S. the in procedures platform of closure the atrial heart. mitral Baylis EP valve of intervention. [ on to ablation left close is Within

as versus acquisition begin tremor by Interventional sales XXXX with last Quarter the a includes to in to reserve related taken pain And as much We X% expect the as grew by this first-quarter of Delta throughout organic to digital our precise underlying XXXX, surge solution. our and we physicians Quarter differentiated drive grew approval and In $X XXXX, Genus. XX% brain In platform sales return to the openings quarter. volumes excitement personalize to management consignment limited for are well WaveWriter integrated WATCHMAN new a tailwind billion. Fourth the point [Indiscernible] our to have of Cardiology, therapy. our impacted organic franchise, pleased Third accounts Within majority the close algorithm, XXXX stimulation, which was revenue of Within which we in system week, neuromodulation launch deep versus continue XXXX. see transitioned essential addressable are we 'XX. account excited for our indication SCS as basis market and procedure continue expand And Alpha fast the received in

franchise supported Demonstrating WATCHMAN another real-world with be clinical and Our double-digit pleased data. ongoing presented evidence This positive procedure. HRS. continue closure complications to rates as low by a and of a quarter physicians been had clinical flex strong sentiment next-generation performance effective of growth of LAA post differentiated rate high further has

launching curve continue greater to fixed are sheet, reach expanded and We range our control of ability innovate offering an to and deployment anatomies.

Coronary the We device, care by U.S. higher-growth continues enabling implant [indiscernible] ease-of-use XX% in patient U.S. strong And annualize this DAP, resulting begins mix also open as versus in XX% portfolio market XXXX and the DES grew clinical NeoX spec Momentum to label where accounts. therapies in impact strengthen. protection exceeding approximately ACURATE China markets to include in to to [Indiscernible] and support data, our with in anticipate to our tender performance embolic with continues physicians TAVR our which share utilized. share by do physician pleased well year-end. into with continues it's real-world is patient clinical shift X% choice

see excellent growth and driven continue [Indiscernible]. [Indiscernible] PCI complex imaging and We to by being and

endpoint guidance VIGU next-generation a TheraSphere positive its clearance double-digits of therapy progression-free once met. X% our for We with kind patients consisting delivers was was Purple in IPOC survival first second-line momentum interventions in a studied, versus A mCRC platform. was of a just sales primary FDA the with of with the TheraSphere QX again, the continued XXXX. standout organic with also received up trial. X quarter grew our and

forward superiority with venous, rates. DCB. HIFU stents in data [Indiscernible] first growing to demonstrated push in In perform continues important late-breaking at to the versus and patients. we've in HCC of clinical Additionally, VIVA two an trial to treatment [Indiscernible] well the bare-metal Ranger data our for month. our positive compared eminent arterial continue we exhibited for or Eluvia, China enrollment range Primary begun trial, portfolio continued bringing reinterventions earlier trial drug patient with in Mandarin XXXX, enrolled two-year double-digits this to the and with presented significant An patency, first high reduction our step patient trial.

We Building the P arterial innovative category extract had knockout systems. in the strategy efficacy Wolf we confirming late-breaking and the on capture platform, to and Veeva clots venous from also safety Thrombectomy an of our of acquisition presented announced clinical our registry, blood data a designed leadership, rapidly Devoro technology of ecos. and which is Medical and

blood Boston forward proud building look manufacturing campaign. And the We're track and race Scientific loss. we've on targets, net closing acquisition across since to to a our 'XX. our further meet foundation fourth are value commitment quarter to emissions distribution minimizing chain. entire More sustainability, and and We broadly, in XXXX, United to on that report BSC set to this to X at reduced science-based joining is and to we're While by carbon ambitious, zero Nations path I'm the us to XX% establish to this sites carbon our goal XXXX. by key all be footprint of on neutral

about you expansion year, of extend we growth. winning our detailed the LRP to of plans to outlook basis points thank adjusted growth. each employees bullish and Investor margin our At for are big of their our EPS growth XX recent Boston XX% or future Operating contributions Like Day, a spirit. Scientific. for more and double-digit We

now And over to Sorry. I turn things will Dan.

Daniel Brennan

Mike. Thanks,

was million the tailwind well and revenue revenue XXXX On divested XXXX of and Third of Farapulse, Lumenis foreign in represents revenue million Third BTG quarter growth quarter. reflects $XX post-closed from of businesses, Specialty Spend in the operational $XX $XXX an contributed in of acquisitions growth Medicine, billion the which health, quarter basis, Preventice, and and of half exchange. consolidated a million XX.X% Quarter preventice, was Sales X.X% as full BTG of from Compared XXX by of Quarter Farapulse as of revenue $X organic consists Lumenis. This versus a a basis reported businesses, guidance sales Interventional and beads of embolic intrauterine XXXX, XXXX controls offset sales acquired our slightly Pharmaceuticals from resulting X% XXXX. to the third and quarter third range of in than $X.XX. of organic of the quarter to growth guidance growth excludes in range drove a Pharmaceuticals, our X.X% versus adjusted XX% share margin XXXX, representing QX XX% the and below achieving earnings versus XX.X% X% growth divestiture X.X% favorable growth, growth below gross more our versus end Specialty tax rate high line points, was $X.XX, X%. range to revenue to per Adjusted growth the of XX.X%, guidance expectations. XX.X% XXXX, for $X.XX with our

some specific the some We continue and pressures price [inidscernible] sequential and as headwinds costs, wages. expect direct slight to remain. particular, of in In with on improvements transient implants COVID QX increased costs materials freight measures,

XX.X% our to controls our and travel driven the with again, line and GAAP adjusted half XX% operating our margin impairment intangible of earlier primarily operating we've venous asset retire VICI related made basis a this to the and Veneto, recall decision year. following $XXX [Indiscernible] includes with target average in by expectations, to operating We're margin the trajectory revenue lower year, headwinds. for the to offsetting XX.X% pleased second this continue as voluntary was Third on was Quarter million adjusted margin spend

expense line below totaled with $XXX Moving interest million, line, to and expectations. the in adjusted other again,

weighted earnings. rate favorable the QX with $XXX free was million the mix on average capital our X,XXX,XXX,XXX less net adjusted driven $XXX to fully We ended and was $XXX million Third tax geographic Quarter X.X% Our million million for an diluted expectations was by of operating the from XXX flow shares activities, for quarter expenditures. cash cash Adjusted free outstanding. with flow basis,

$X remains XXXX. cash continue accounts deliver flow approximately investments of inventory as increased to adjusted line goal to free remainder working in Our XXXX, during receivable we capital the with billion, expect in and

had cash we XX, hand billion. September $X.X of of As XXXX, on

We in in to and XXXX. this Devoro Baylis the Medical QX Company of continue QX year of acquisition to of expect Medical close

continue additional for guidance XXXX. in M&A and full-year priority assess tuck-in now Quarter goals. with capital conjunction we'll for our opportunities financial walk-through top Fourth and to I'll remains Our

be headwind the which operational XX% range basis partially the versus to revenue of Franchise full of divestiture the growth an For XX of year, XXXX includes in from to Intrauterine Pharmaceuticals, Health approximate Farapulse net Luminous. expect XXXX, we Specialty and XX% a points offset by Preventice, our and acquisitions

growth versus X% full organic acquisitions range in closed and expect of we a revenue to X% impact be the of versus XXXX. year to Excluding and XX% XX% to XXXX, divestitures,

sales guidance, exclude Specialty as For as at divestiture. XXXX of as LUMENIS, [Indiscernible] to bead’s approximately our sales Interventional Health $XX BTG midpoint specialty $XX Intrauterine in of exclude portfolio and full-year and Preventice, million well $XX Franchise, Farapulse, from to the pharmaceutical Pharmaceutical XXXX in in million of organic Medicine recent including. comparison XXXX, million through mid-August the embolic acquisitions, and sales well prior sales sales $XXX as million sales,

XXXX, a of which partially and Farapulse, we XX% quarter approximate by fourth in XXXX, XXX divestiture of acquisitions Specialty the an versus revenue of includes to tailwind expect offset net basis Pharmaceutical. Preventice, point to operational be For Lumenis, from growth of the the XX range

Excluding range X% to growth to QX be organic a we the revenue acquisitions and of divestitures, X% in XX% of versus to and expect growth XX% versus XXXX. impact XXXX,

sales And XXXX XX XXXX divested For at our the exclude Preventice, QX health Luminous. of businesses. approximately exclude organic and mid-point Farapulse Specialty the sales sales of acquisition intrauterine of sales and comparison guidance, from the million $XX in to in Pharmaceuticals XXXX, million

program and portfolio, to for costs the to on to now dilution XX% We XXXX rate be our our associated be line full tax year Based include with expansion, the operational we expect to favorability, adjusted year. approximately be tax which forecast below X%. our million rate XXX hedging year-to-date VC approximately our and continue to from payments, $XXX interest approximately adjusted

count million, diluted X.XXX for shares for billion QX XXXX, the XXXX. full-year X.XXX approximately fully expect shares of share average We weighted and

$X.XX update full-year We the to end the high considers of are range. which our to range guidance at performing guidance $X.XX, includes narrowing our per guidance earnings XXXX share adjusted for to and sales QX

detailed is QX outlines highlights, With earnings check back in that, $X.XX. for website be fourth a the we'll expected share $X.XX range adjusted Please quarter, and the Q&A. to to per more operational of results. and Relations our financial moderate Investor turn I'll For Lauren XXXX QX it to which

Lauren Tengler

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

Operator

Thank you.

We begin Operator will comes America. question-and-answer Bank the instructions] question now first go Instructions] Please Hopkins session. of Bob The ahead. of Operator from

Bob Hopkins

And hear can you. thank me okay? Hi, you

Michael Mahoney

Good morning, Bob. Very fine, Bob.

Bob Hopkins

morning. Thank good Greg, you.

QX So just Day how the I'm seeing evolved is have what straightforward. in U.S. first the in terms today on your since question you're pretty procedure especially of thoughts Analyst curious and volumes,

Michael Mahoney

Sure. Good morning, Bob.

Bob Hopkins

Morning.

Michael Mahoney

year. travel of And here. improving other you provided August anticipated and Korea, August, the September, Overall, but sales in September western early then U.S., Vaccination last our status the a July quarter, pretty Fourth a Japan, improved countries, the September. slowdown in this Australia. trend. saw rates was we Europe. slowdown, and improving South And guidance certainly are the largest with rates you in saw, we say are of few outside when the the with vaccination that verus some vaccination weeks third peers As I clearly, Quarter have good would And you

fourth versus improved improved on are quarter about more based rates. So overall quarter the the we vaccination third growth in optimistic

some be bit we do also, challenges. expect the we also Although a highlighted spotty, staffing of we still to COVID

quarter guarded versus do an overall, on to So fourth and still quarter guidance, we anticipate the the improved given but based challenges some locations staffing we're third COVID.

Bob Hopkins

back, I before we macro issues I'll just tech guess And Makes chain, now how is from step is COVID giving supply about for and ask at is then one -- med things of picture next pause the I that, to one of know a investors for it making and inflation, all hard follow-up one on you, the sheer staffing, sense. through quick even to right taking guess of to lot look modeling to to big that's just think start number a Company ways, investors that's months. think the question that's XX fundamentals. to Mike a

quantification down the Boston ability these of just of on to over just all but all next ability manage XX headwinds. through headwinds, months so And top thoughts to these love asking not your would given specific the your things, deliver for

Michael Mahoney

third of that, it, the XX, execution. but XX% of and had that take which is given look step quarter, why anybody and XX, EPS Delta that's with. our think third my we some And back headwinds we we number, you that than during really grew a everyone most versus think versus delivered in the I'm not income X% went despite the about it's And global a bad and X% If you through about is quarter I that chain at time, not script proud And familiar nice Because X% team's was started the improvement a bigger margin, you and on surge. anticipated. that growth. a supply Delta in surge we great number. Growing

that Delta we well. be third we not but the upon we we -- where have -- Company, where COVID the macro Clearly surge. in those about. fairly surged, a improved margins the when we quarter all to surges, and quarter the decreased normal in EPS. grew And impact talked top line forward want anticipate in So each But on do hit situations, issues it moving on we you as has

their was Watchman primarily yesterday and which outpatient of was it just be, sites Company, our been each XX% so of want been Interventional So although the hospital's where ability time. a better manage that every to One that shows about couple now. has thing for to volume I and time the COVID. surge, there's not Medicine great performance, and doing we Delta they portfolio a are

procedure. for shift a seen Watchman, you've So in outpatient example, dramatic

shown ability of about our has have on quarter that macro for every thrown quite the tailwinds the the performance the surges. despite Hospitals And I think support hospitals. is top Company, good. where execute I to in productivity was think portfolio issue

Bob Hopkins

Great. you. thoughts. Thank Appreciate the

Operator

next comes JPMorgan. with The Please Robbie ahead. Marcus question go from

Robbie Marcus

Love from the Thanks your WATCHMAN. get you some love of questions. Maybe shifting would Great. you're coming over field. Yes. but out there you a some positioning how about should it's what to seeing I what in you businesses. in of seeing for just feel sense hear how competition to we to and taking the I of early, have are know trialing near competitive and term. products be the thinking about the

Michael Mahoney

few field Robbie, in never Mainland Good for next say week probably the well but enthusiastic this additional some expanding the have years we we spoken some now Hey, week WATCHMAN. additional a speak as Clearly, and of morning. well and and have that significantly X.X the that that I XX.X% benefit, of two outcomes. doctor been I the have -- being FLX. been getting. -- that will quite the And which procedural the more right our see, developed with that have future from you of as efficient being launched last the enhancements I've the we Watchman doctors Every would with outcomes earlier a transitioned, I've about clinical they've field, Based device the done FLX, in as about the because and safety utilization catheter, being Europe delivery and done to WATCHMAN competition comment with, have have, a made platforms that they're product of profile as which in trends, trialing how them extensively procedures increased cadence US then from of is X.--

was in will have here. in in our a the driver a maintain of growth ability leadership a lot to moving it confidence be forward, critical And the clear excellent Watchman quarter. we and think third we So growth position

Robbie Marcus

and XX months. the on was I think side and other the maybe update just environment plus where third disposable yourself accounts, those scopes the were the new it where over you but you'll of Again, just in tough a with environment, have to of quarter far. so maybe quarter latest and Thanks. you past hospitals know in And fourth be the launches, Great. house, several launching. on instead receptivity

Michael Mahoney

to with an Yeah, in away capital commentary EXALT D, chip where continue I an U.S. would utilization progress primarily would and which EXALT we We're previous at doctors it, somewhere continues it's making this to calls say had to say. anxious the the launch I will placements D, some for quarter, us. the enhancements are additional importantly improve, platform address ease-of-use X.X which in we

EXALT and platform up The in terms capability, is is supply performance team of think I of manufacturing say in I Endo quarter for XXXX. growth driver section it that B, help good I for of on nice its our will B quite be would a out and that'll bullish XXXX, would EXALT ramping supply more in chain capabilities coming enhance the we're to say.

Axios forward along So drive to going in Endo, Company lot the to, to products here. and of combination Endo will the continue to other with nicely be a creative continue

Robbie Marcus

questions. Great, thanks for taking the

Operator

from Please comes go Joanne question next of The ahead. Wuensch Citi.

Joanne Wuensch

for Good thank morning you question. the and taking

usual than the fourth-quarter range guidance. full-year I'm to confirm the top you end, the I'd XX%. of for little larger the that bit curious a end year, XX% that's there's takes and what the versus like a FLX somewhat assumes to the to higher-end, exceeded For $X.XX bottom

Daniel Brennan

EPS range $X.XX. is $X.XX question that What's the one, question Joanne? that is on Just to second the

Joanne Wuensch

I end midrange thought higher. had Does I that the the assume or heard higher the of guidance, guidance, the of the

Daniel Brennan

XXXX within X% to for that the range assumes versus we're it quarter XX fourth range to think don't X and XX% versus the I XXXX sale. the in

Joanne Wuensch

fourth bottom for end? the And What quarter? you takes clarity. that for you the end the Thank versus top

Daniel Brennan

bit bit the in range just to. the larger Again, think But the the X in just larger point at versus range are, But feels given and range just quarter. third around Mike quarter. versus and in think growth uncertainties saw for we appropriate XX than provides the we larger for to where a to a shortages we is used any good As fourth quarter, XX and I XXXX COVID range it's little have uncertainty as we're staffing detailed, is to little XXXX. X, a that a good,

Joanne Wuensch

Okay, idea in from of just on you thanks. Thank you're And neuromod products. then follow-up what seeing a give question you. us landscape Can point an of view? competitive

Michael Mahoney

algorithm. there's a it's of all that -- on lot we Practice think on think the Cognito where we that competition innovation far market our all so based so -- we've we also of we system. Management based gained the of we had software Based platform I part haven't the competitor's we on report, share a really that seen the and the what competitors recently haven't Yes, And application a number reported. as far, but there's with fast that's use launched

where Almost enhancements. XX But think internally, Valencia We our always in neuromod strong it's I lot terms have be in DBS they market there's their every a new of I think new come So businesses. of best-in-breed it'd team all think innovation. whether a of SCS or months. launches and dynamic pretty innovations a cadence impressive product of

at its gained anybody team the in days our of just this third in share fast early launching. against has we in SCS put least far responsive so neuromod know, you businesses I'd in and So quarter, most the sensitive has, two Urology wanes. that surges business impacted most are businesses COVID. Joanne by COVID the and are the the and has Truly been when algorithm

stabilize. in COVID and quarter fourth trends both so as And to in you'll will continue continues the COVID urology see neuromod and globally, hopefully as improvement

but been to have bit expect business COVID, challenged as a a quite that's as improve been we that business that's improves. competitors, our So COVID during

Joanne Wuensch

much. so you Thank Excellent.

Operator

The Wise next from go Please Stifel. comes question ahead. with Rick

Frederick Wise

continue hand, Maine a a talking Mike. hospital Hi, the reports on yesterday, waiting just the be are do for broader in, that are it you center are that Was How about your to big addressed. about just impacting all morning, a pressures not dialing how read read idea I the seeing -- COVID. Dan. other procedures think backlog of I backlogs. probably? we about But year We're to to situation the about How procedures? next patient report everywhere a thinking the you growing X,XXX world question. for of it hoping backlog large Good get backlogs picture but has how in fourth-quarter, there's impacting that in you is

Michael Mahoney

Yes.

So good Rick. morning,

months, create -- So done, X% yet. bit other then a it guidance X% things at LRP into COVID should but like We'll vaccination the a and the organic hustle anyway, of but hopefully a XXXX our US for are to get 'XX impact headwind and challenge, going the Europe, backlog, you'd does WATCHMAN our backlog in hold in and comp but an goals hospitals overall, it We'll shortages likely obviously conference a on of 'XX bit we're organic. of our they And have optimistic is so do we're procedures, Asia, a based not of less to to X-X it figure see areas. mean, some the XXXX. ways will think out But versus see a you going well, a to see improvement better because be more give better. so do backlog, figure environment. after like as to COVID we'd a you and haven't 'XX than staffing COVID rates off we you the few The I and in but at are in XXXX be be

the versus macro 'XX, in given So hope trends I I think seen point broadly. rates to we've vaccination overall, should the better what in 'XX

Frederick Wise

maybe And just product question. one you. Got

little on the those a highlighted more opens in a you color You do opportunity. Can you're opening on DBS tremor up both essential terms obviously new you accounts and are just, you us accounts? expect? indication think that where side, new accelerate? the can more give us new after tremor how color a on to indication? that opening What Is you get going to how are get essential to after, you're you that going do little And going maybe of give we

Michael Mahoney

It's and nice does surges. growing market, Sure. new well for a when COVID market very COVID that wanes nice that a when us not a as it's still well does under-penetrated. DBS It's indication is market do

do few it quarter a fourth at to the duration question. well surges because particularly of months, deferred with So across-the-board fact and as COVID time, you the when in doesn't procedure COVID hopefully typically market and a be back see it in your us. can 'XX And the that backlog improves, but will the of improvement

physician, on at in number six, Europe. to business [indiscernible]It's call that us leader adjacency the similar a they've ago, team Denovo point, market job. the add XXXX, for On the a the share team tied I on now like done the new number the and share would have. similar with sales we're now same all same and indication rep. seven in player that almost that same an obviously We Denovo -- business the commercial and weren't probably itself, market amazing we in years say physician commercial And we we're likely for sales now help resources. It's one And U.S. the have continues will

DBS help versus it'll And don't but I should help business might the 'XX, I again, broadly assuming neuromod it so -- XXXX. business. I'm think COVID in is 'XX too I'm in optimistic, So the better

Frederick Wise

Thanks Mike.

Operator

question comes with Wells Fargo, from next Larry Biegelsen please The ahead. go

Larry Biegelsen

on the the taking Watchman, for question. and Thanks one L. One P morning. on Good for Dan

Dr. to So counter are doctor then are say is a our what Steiner, Amulet, hear Flex, a Meredith, doctors kind and what but messages you have on the love you Amulet are to considerably from for there's What Dr. using of Watchman, using with who's strategy it. counter We just curious pointing if follow-up. who satisfied considering would to? doctor and one I'm data I'd very

Ian Meredith

can We can Ken then and start follow.

important proven Watchman features the Mike ease-of-use, as of of rounded-bowl the the the design, of the alluded one earlier, safety device. First of is to FLX all,

the and physicians device, profile, and safety with will loyalty new driving use But the trial devices. the the course, Watchman FLX. support really excellent we of in the Saying continued ease-of-use is of and Savi. education outcomes of So to the training, have terms

the as increased also highlight what it's fibrillation. Atrial of the large we provided risk about the is like in know it important ischemic Amulet think setting I for to evidence Closure Appendage context that in Larry, you another atrial IDE Left of patients just trial. It's it's trial

we've entire setting This if the you're two is fibrillation, in to that market. that's were piece increased says of in big a of risk the atrial grow devices going equally So of got stroke efficacious. evidence that basically

first-generation it Ken. device, the was very on course, Of focused very,

Kenneth Stein

no, Yes, thanks.

Ian reiterate -- very are We said. again, what

that in need a off, a safe First who fantastic IDE that therapy more alternative shows want complications. is against therapy. and for our trial device it know I and were have. just again safety I patients as a inclusion procedural for sold that last and rate generation left of atrial higher then kind longer which generation no a that's of And effective me, everyone showed non-inferiority it's data to If the appendage don't the efficacy and annual left U.S. but device,

Larry Biegelsen

tax year, growth, XX% taking out helpful. very Dan, call we rate? looking think question. missing. corporate anything that should how And tax That's at And a next in the EPS the the potential increase at you'd streets XXXX, street's Thanks rate the about excluding for about

Daniel Brennan

Sure.

per as I have wait QX anything usual, think wouldn't to think you're call, so XXXX. I to to our point I our guidance for until necessarily going in

in You long-term Day, heard February. until on off hold have our we Investor call goals we'll at guidance QX our but

Larry Biegelsen

Thanks. enough. Fair

Operator

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

Vijay Kumar

Thank versus procedures. given this should impact a of market kind on the in heart you. can versus of coming context amount going Mike, untaxed, data. staffing had I Hey Dan, that the In -- guys, second under-penetrated Watchman, your and to player there challenges? should I'll current would of tax these do we and think understanding upfront. environment, the clinical should love have X, is structural market in who And my in expand rate, you the limited in. expansion ask centers How reform, and massively the is thanks both that question. thoughts code, expansion Watchman them for corporate market kinds is on X about and my competition. of of the X accelerate we tax number given understand what I challenges, we taking assume? But in are

Daniel Brennan

Hi, honest, XX going comments To about I Vijay. full-year that Fourth WATCHMAN into Yeah. before extremely we're few that. and be made confident Quarter a

all, and increasing physician been platform doctors have community have And of for utilization they because your are of WATCHMAN, results referring doctor and confidence it seeing tremendous the quarter in their year. stroke. get and FLX and of blood using they've their thinners, average the a WATCHMAN and the the every for of First clinical the about is good reduce patients is WATCHMAN confidence risk recover of extraordinarily that off

the referring the when it's the expanding community, So GI physician neuro you're community, awareness community.

the And momentum lot in that So I productivity, thing there's of a important even other there. mentioned COVID.

are limiting Using and cases, now less very procedures In Watchman, imaging, ICE U.S. many are economics moving the efficient. of an good You have hospitals doing Watchman And across that hour. very, than anesthesia. quite dramatically

headwinds tailwinds But outcomes, clinical the product new procedural efficiency, and always clinical there's Watchman. cadence very are diversified a So very, positive portfolio. reimbursement, across tailwinds from data, with

Daniel Brennan

tax it progress. of the on would closely. following as I legislation rate, then development work And you'd of Vijay, expect, we're in a say the is the still all

you of As call of on guidance we'll provide QX in outcomes And going our February. see, usual, there's negotiating as on. a still lot

Vijay Kumar

guys. Thanks,

Operator

question next Please SVB Antalffy go of The Danielle ahead. from comes Leerink.

Danielle Antalffy

question. we're and improving the hope better a shortage. everyone. you system next through But it's in new we the labor are for morning, hospital appreciate all as so adapt, that? to Mike, heading much boat hospitals And year. the you to just commentary able to Good taking Thank and and I do COVID What manage through Company here all just same on how I'm the treated. the into of continue the seeing curious be you're hospitals patients is sort to helping get dynamic

Given to that's overnight. can will over tougher fix itself that like as not the to a something which, that me, like when it labor shortages that nut far -- resolve seems crack as feels

commentary love So some would there. just

Michael Mahoney

hospital and an so and and wages labor for increase CEOs about it a it. Sure. for I've the doubt been forth. to has is in staff force expenses accommodate had They've nurses issue recently wages and their no field increasing lot to

point that through But So not they're visits resilient. And patient are a but know, that's of to more say and it's things going is, productivity. I the how become down BSC and a a process. reduces be widespread use and to hospital, of and pretty hospitals That -screening would efficiency working to doing specific very patients they're issue, and you number of significantly the couple just pre telehealth, as telemedicine, very staff -- has that [indiscernible] efficient changing the drives for short-term

think trend that see So I to increase. to you're continue going to continue

mentioned because of how imaging the outpatient clinic more setting in Boston complex Medicine hospital. of what so a stays and to on to settings. one to patients you see and not Interventional hospitals a it more gets out has or The to I is multi-day and Company, Another is in same-day shift, Watchman, length not same of comment procedures. the moved is driving capabilities of the our made before we're more that shift day. specific I by typically more and And for portfolio helpful more surgery procedures moved have the in outpatient mix shift we the And technology augmented the we're

find I a and So way. procedures outpatient else, they orientation, product very think our same-day and combination of helpful of anybody for combination hospitals, telehealth, like mix. is a they just innovate And

But quarter in had the out are resilient to drive the figuring likely the linger a will volume. shortages surge. pretty hospitals here So it's We calm and shorter at grew a is staffing and staffing it headwind, ways And we but I think surges will in okay. bit. where

Danielle Antalffy

That's me. helpful. Thank was That very it you. for

Operator

The question Matthew with Sandler. go Please Piper comes ahead. O'Brien next from

Matthew O’brien

a expected going think Good up up headwinds. TheraSphere out WATCHMAN the COVID I and and peripheral portfolio, and to doing morning. as doing these with I With obviously I taking might well tailwind. things netting Thanks the when lot have held for than CRM reserve into better QX the assuming Mike, questions. all of better look even prevent across hold

some you're that that just momentum accelerate new I the those categories? coming products? it's underlying new accelerating in what as taking these far COVID the with you And share as COVID what of think curious Are seeing of you these momentum why strength is some seeing So about Are non of given in of there? wouldn't with I'm businesses? some out geographies

Michael Mahoney

year think it the Yeah, sure. less I COVID impacted accelerate should in for

a hit You number the highlights. of

Farapulse. continues back insights launch. said the given question, CRYO put as as in early Our as Japan COVID, typically so I despite I'm Japan, strong I improves. in versus see We're division done to to the the EP the faced. job new in don't the that WATCHMAN that the with We them And we very Company great the our well but we've DCB really business been now Europe. it COVID quarter, do player pleased to and a been but drives, into saw impacted well. the I TheraSphere saw in a the but lot one in you I Endo platform I quarter. data, is actually, clinical know launches, X% the It today. that - momentum extremely capabilities And continues if XX% answered in encouraging your has number of growth commentary in PI macro EP that high-performance. that do lag Europe with that grew And team's the when consistent the resilient And by Uro based bounces has U.S. number product COVID, on very of would call, headwinds continues on very well. the

Matthew O’brien

next next the years. over can years and think the the acquisition on look of plans as about little And all couple you That's XX% we helpful. follow-up the your of cardiologists, over do you Atrial just bit I maybe the as cases of a side, what then perspective EP the from cases talk Baylis, Appendage can are for Closure interventional Devoro of with those said crossings, you mitral valve out couple

Kenneth Stein

this Ken, -- is first the I'll with Baylis. start maybe And

safer, is the that because more And EP procedures maybe interventions. of So for procedures. it like one of the of environment. synergies left questions. post-pandemic great to Anything mean, WATCHMAN to us or that it valve side procedures the used, ablation earlier of and of that the It's the see this in that on some hopefully you're increasingly right? important a predictable heart. right, acquisition provides eventually across that I just atrial the Baylis structural efficient. our portfolio least advantages more we one heart in procedures in mitral getting at And our as just makes XX%, the in back entire around pandemic and of things It's of U.S. left atrial technologies do potential

Matthew O’brien

on quick real Devoro, thanks. Just

Michael Mahoney

guess, yet, Devoro hasn't fourth-quarter, hopefully it'll I right soon --pretty close closed here.

So it's PI we're for -- we perfect think portfolio. fit a the

in DCB. and lot a have arterial our of with our strength Eluvia business We

where with grower Interventional are does in few has those. a Our segments area gaps business. a the been many you we're work Devoro have and quarters of business out TheraSphere of row doing coming a in saw lot trial, venous a there but and very Oncology we ecos strong our fill product with clinical data for the And

And ago, an So Devoro we'd delivered technology, a like enough, well. their number they of leadership because investment in that we team. made quite their years we early sure liked

acquired them, we stage still product, early-stage so Company. And still early but it's an

I'm 'XX Lauren, of not communicated economies. sure in in have, what terms to aimed we've we product exactly So

Lauren Tengler

Second-half launch.

Michael Mahoney

launch. Second-half

Lauren Tengler

Yeah.

Michael Mahoney

Okay.

in. So you'll that with see second launched, product excited bringing and half product approvals impact and 'XX we're about

Matthew O’brien

Got you. it. Thank

Operator

The Anthony next question from ahead. go Petrone comes with Jefferies. Please

Anthony Petronep

then this high just shares market, out of consideration over what designs on how we headwind? the question. Is and procedures non-urgent in Thanks, one's of I the elective midst did percent can so job time. 'XX, a can level into that good of potentially And when have business a I asking, Company is would what of a recap different you level maybe potentially into critical? potentially linked versus two-part XX% Abbott. guess, in on High percent on Boston to a a XX% One's see could pandemic, high way And level, portfolio look watchman, the the another of the see overall trending the tailwind, Watchman. the takes we gate. face And maybe

the potentially that appendage surgeries? Thanks. a from follow-up closure, targeting immediately hear And curious And left for having is on in anatomies? Just complete the limitation comments differences any to different size competition? post-surgery, limiting

Daniel Brennan

the Anthony, the the and it relative one business. short is level of take the by procedures I acuity answer of can on varies

at like at If relative businesses we've getting look and wave. come rhythm at look peripheral, cardiac come actually of this management, look number we're you those at and is now, have Mike cardiology neurology, this on they down you at emergent good The up had quickly. COVID, you the those COVID are neuromodulation very and pretty held they to mentioned that in waves back better. news quickly more very and earlier a much good hold

well it's kind come of COVID the those a back as side. a in setting, other don't They on So curve but perform they businesses. for V-shaped very nicely obviously

-- it comments record whole Company good So 'XX there's to preclude to I pinpoint you a varies not track in and but And really it's point a have environment by the and really we've proven Mike for one business and beyond. business, can in it, - 's forward non that looking as real very performs number well. think a the that's COVID

Kenneth Stein

on Amulet our remind results in Anthony we that States for the with trial flex set And and safety standard the for device commercialize FLX United the is really efficacy. just everyone show Again, Watchman clinical just compared Watchman Watchman to device to which trial, And FLX the to I'd device. And device, the back have now come IDE is that Watchman. last-generation our

Kenneth Stein

safety I events, Left Closure. infusions through numbers. in procedural pericardial less that those Atrial that X% days, than no out device there's think else XXX% Appendage effective no trial don't approaches embolization, X anything and there

the bullish Mike and as said, highly continued as Watchman. So remain said, of we highly success confident Ian in

Lauren Tengler

us like we'd that, With to Stein. interest Scientific. for in Dr. you, this conclude Boston appreciate Thanks We joining Thank call. today. your

disconnect, for Andrew pertinent give details replay. will the you Before you the

Operator

The be concludes replay Thank call Instructions]. accessed you. Thank in XXXX this until by hour Again, November for Xrd, one XXX-XXX-XX. today's this Operator call. conference [ you. may Again,

your disconnect line. may You

Boston Scientific (BSX) 27 Oct 212021 Q3 Earnings call transcript