BSX - Earnings call transcript Q4 2021 | Boston Scientific Corporation

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Operator

Good morning, and welcome to the Boston Scientific Fourth Quarter 2021 Earnings 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 Lauren Tengler, Vice President, Investor Relations. ahead. go Please

Lauren Tengler

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

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

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

utilizing and Vertiflex March, for and and Relevant Before microspheres as which August acquisitions operational growth call include and XXXX, net divestitures and we rates of on Lumenis, intrauterine growth quarter XXXX baseline for fluctuation comparable franchise, as the we to currency embolic acquisitions May a versus were respectively; in refer closed which sales. COVID. like there of Spec the everyone XXXX, which Preventice; impact XXXX, XXXX, foreign the versus excludes growth XXXX, Interventional XXXX as second September XXXX X, health the XXXX remind August which full today, Farapulse; the XXXX period comparison revenue and organic last Pharma, less year will which BTG March closed and of XXXX respectively. in to that to Medicines, well begin, global I'd to and and include divested full Throughout call, of respectively. closed the excludes prior revenue than in growth and further are portfolio of Divestitures organic mid-August BTG

XXXX forward, to acquisition, be corresponding Medical guidance only. which Baylis close and Going is in to expected guidance results 'XX. compared will excludes QX XXXX XXXX

expected comments. and the cost cause may of performance, Factors and well growth differences and as our expenses. Factors obligation intention These financial today's pandemic estimate sales SEC. use, call, opportunities, including found securities and COVID-XX be or Investor For and the may please market our those may it such of statements I'll share and update and of rates, spend earnings; any them. described to over speak his this point, include or and and other more the include, to impact call laws, with meaning new tax XX-K by statements flow other product section which of for XX our acquisitions, information, expect, to most Company's the that contains all disclaim similar statements unless our highlights on our anticipate, our references turn revenue, operations and our otherwise They clinical refer within trials, filed Mike XX-Qs margins words the to and and cash the financial this forward-looking On sales, we results; subsequent recent R&D At which website. be Slide deck, may, This things, date, launches, like federal in identified specified among other of savings believe, about words. upon operating Relations approvals financial organic. as as only Risk growth

Mike Mahoney

$X.XX they grew guidance with Fourth 'XX. all $X.XX the impressed XX% quarter Thanks, the XXXX. of second X% the resulting patients thank very employees XXXX to in strategy either grew and businesses opportunities XX%, operational XX%. need the Full We're cash everyone, year was our resiliency share high and XX% hospital and fourth USEP $X.X global XX.X%. cash versus anticipate and year grew winning achieving in $X.XX. operating and quarter or XXXX. and the to basis, cash run the in rate versus XX.X%, strength of sales of a XX%, adjusted organic exception bullish Overall, operating business range with and the we're of adjusted us very very XXXX, of achieving the The share. spirit 'XX, resulted free quarter diversification versus $X.XX. be the year end full high again sales agility sales today. was our X% with exceeding high versus margin Fourth the XXXX leadership I'm our year XXXX flow of ahead again, of our the to gaining about We XXXX all a adjusted total 'XX Lauren, continue of ability full remain of and quarter the sales the grew our the XX% performance $X.X of On X% guidance pleased product EPS margin flat operational company pleased of fourth our Full while provide full their grew grew and range for out and during Investor COVID half XX.X. challenges maintained versus guidance at gained grew forward sales with which and XXXX adjusted you, joining both strength laid grew pandemic. while to our billion proud that flow EPS of systems grew the to organic despite range organic XXXX, units category the care generation to XX% year 'XX CRM in end XX%. billion, free achieving we longer-term near-term Full the versus of versus presented. Day. range full of In sales look $X.XX versus end was with year of XX% $X.XX XXXX, the QX XXXX, year XX% and flow quarter of of guidance the organic year to to of adjusted end high 'XX of of XX%

So turning XXXX. to

a of related impact for providing to less versus underlying procedures uncertainty full for to year shortages. anticipate and waves we're on we account While wider COVID range XXXX, XXXX the COVID a staffing

for of to X% X% Baylis quarter to were year and is revenue excluding of X% expected to close a growth full organic 'XX, quarter of first For X%, the first which guiding in XXXX. acquisition,

operational grew launches both with in to basis, QX XXXX year acquisitions 'XX Middle to expansion comments inclusive a goal on high and growth of we adjusted including on to full $X.XX and target XX% full both is an be estimate 'XX new of basis XXXX. double-digit provide margin sales EPS year range. more more operational full on in and and adjusted on and quarter Regionally, along XXXX fourth Africa at insights across tailwind adjusted the more EPS EPS expect results basis XXXX, the point XX% end continued full $X.XX to grew on outlook, XXX details the a of operating $X.XX. performance quarter 'XX -- we year QX the I'll pressures year EPS strength portfolio. highlights Europe, provide Dan year will macroeconomic $X.XX, our with East, versus and near-term continue full product Despite U.S. grew Our and XX%, the an 'XX. fourth XX% from of versus outlook. now

Europe the with countries the pandemic and region. We Middle excellent despite gaining year growth year and basis, continue share. On of with all majority the a units to prior performance Europe western business many double of grew see strong versus East the in digits businesses full Africa the impact in in

the We growth the Europe the continue given globalization and our product efforts strong pipeline, of integration anticipate acquisitions. innovative to region from

year. quarter for Pac operationally Asia and XX% 'XX fourth grew the versus XX% full

launches new Asia majority by double-digit Urology grew and XX% innovative in and POLARx units. like our Ranger portfolio. therapies products quarter FLX, Health coronary a Public Pac well 'XX the full full XXXX. versus XX% versus as the year across now XXXX as vast by fueled I'll On year, quarter, grew prior PI new grew and on business ongoing versus comments launches. the on provide IC, Within an supported WATCHMAN a and and X% year Japan additional countries versus growth sales some fourth basis and grew on X%, basis EP of with product organic

Rezum. improved Erectile pleased saw the and On reimbursement Restoration. Rezum both grew and basis, digits, double-digit SpaceOAR year LithoVue, outpatient the setting full hospital Stone, with for Core quarter, ASC the strength with growth the SpaceOAR and Rezum, XX% for and Within in a across business we we're double

As XXXX, in our we of the remain extended the acquisition laser about Lumenis market-leading look by towards strong Moses leadership forward position excited we technology. further

with organically XXXX. of endoscopy, XX% versus quarter year fourth 'XX and to full grew Turning 'XX sales XX% XX% growth versus versus

strength regions billion Endoscopy of in $X business duration the Over XXXX. achieving franchises across the year, all broad-based and in resulted

SPY Model portfolio, and DS, remain we the quarter, launched grew XX% Model of within D, Discover. on our year imaging innovative B this over the outlook a product single-use line offerings We stent in and AXIOS the about China EXALT full SpyGlass Within excited globally. basis EXALT our including

we hospitals, our by endoscopy a Looking level differentiation at unique growth the continue anticipate of high continue long-term to to partnerships global creating given the commercial XXXX, execute as and breadth above-market at portfolio. teams with

trial, line well quarter Turning and our digits, antitachycardia pacemaker our first versus by to single sequential June. market. December, in versus legal with in in the versus ATP for mid-single likely in year electrode our growth fourth as we the provide we patients. study sales declined our S-ICD was clinical which to enrolled which the business enabled X% to pacing with franchise, grew grew In sales market business a enhanced full QX, X% In was 'XX. grew The our digits, in low patients expect CRM. dual-track as Emblem improved stand-alone XXXX modular and launch high-voltage line pacer S-ICD Organic X% with grew 'XX

execution. Within share. pro strong fourth grew XX% versus XX% XX% full and Electrophysiology versus the Diagnostics 'XX. on business X% portfolio monitor, grow The year well quarter and with 'XX franchise, our to sales by versus cardiac full basis, an LUX-Dx, preventive 'XX implantable differentiated growth grew enabled organic and perform continues forma basis, a our of on year

closing sales first In and year systems, gain the in Baylis XXXX. and Europe POLARx, forward to a full and basis, revenue portfolio, in of 'XX. grew sales about procedure EP the prior and excited innovative were Farapulse is resulting evidence a StablePoint the impacting to international and XX% XX% including very on XXXX. volumes, technology. our safety strong going quarter with we the quarter versus well full of year to in versus XXXX of organic Farapulse. over rate grew full fueled X% our physicians the flat enthusiastic Importantly, look launch share it Neuromodulation, the by versus wave ease prior grew year COVID Despite year further early versus The demand outlook and of continue XX% ongoing complementing clinical for We're growth business of this by WaveWriter with with Alpha use SCS EP fourth operational

presented various weeks the of two-year therapy. data including few of NANDs, SCS our sets we supporting the ago, a longevity RCT combo Just data

continue systems SOLUS the for trial for coming back Coronary XX% for anticipate chronic months. spinal DPN includes Cardiology a with in and basis versus year Interventional sales the the region, We our sense, pain forward Within the In not offering every we studying enhance portfolio launches growth on with work continue our capabilities in SCS versus X% approximately to Interventional who in XXXX and portfolio grew Cardiology, sales full WATCHMAN We XXXX. partnership In to 'XX which of the volumes, undergone to to X,XXX 'XX, 'XX treatment have sales leg continue our procedure related return quarter points expanding U.S. impacted our with low initial transition tailwind Full reserves COVID Therapies, complex in consignment versus XXXX. in year grew fourth PCI of Vercise the and year organic through franchise WaveWriter surgery of clinical strength launch recent XX% system drug-eluting in roll look the and our X enabled guidance MEGATRON. of had growth strong our strong in and/or by our XXXX. full Synergy while franchise, versus patients Genus Brain to across in 'XX to we XX-millimeter U.S. with differentiate global VGO In further Brainlab.

half U.S. our in We the with expect anticipate We're complete drug-coated expectations. U.S. the being our sales first to in in the and trial as WATCHMAN XXXX. quarter with balloon to market in first IDE of performance the enrollment continue franchise to pleased XXXX agent surpassed extremely of fourth

global performance consistent sales year each with XX% full XXXX in the million, of Importantly, was growing resulting quarter versus XXXX. strong WATCHMAN of growth, double-digit $XXX

We and LAAC NCDR expect greater be increased pleased FLX to while ongoing with expansion over later registry the the is patients presented this analysis evidence awareness at XX,XXX the month. patients continue ability to analysis first CRT Clinical and market. physician This global deliver from this safest set will date. to utilization largest LAO WATCHMAN in readout of the we SURPASS to important include an remains driving our therapy, most and fast-growing efficient the generation focus, and data

growth we're to Heart expect had franchises, the in Guidewire. continues for Across ACURATE to with market full and sales well the and Scientific for quarterly XX% share 'XX the for to continue ease driver neoX, and over significant positive the year approaching physician neoX valve, we Sentinel a of results Boston to accounts. date open Safari We share and clinical excited Structural be beyond. XX% European highest WATCHMAN performance are on ACURATE of across and in the feedback use the with perform

investment XX% our now so full the we've art with sales sales near- Interventions, to can program execution In technology, made to the structural the existing decision decided this While and versus with portfolio. discontinue military of as long-term versus clinical we and We've pleased the of XXXX this compared been organic on we that X% to and within quarter commercialize within Peripheral in of X% the 'XX work the year across portfolio future grew and technologies focus the platform military time opportunities other to financial growth and due elsewhere have space XXXX. versus early Company. fourth progress required

Within is underserved pleased the million VENOUS, in XXXX. sales exceeding the portfolio, offering, this and supporting resulting our with TheraSphere further over XXXX, TheraSphere therapy clinical studying the by second and continued runway varicose we chemotherapy. market-leading extending evidence, failed complementing with the leadership. clinical In in first on Varithena, market. including Eluvia in Phase over the offerings XX% the trial, XXXX, the see we've closed evidence drug-eluting venous Ranger, first-line been to positive SIRT half QX, grew of EPAC our acquisition arterial and vein for second-line $XXX full a in of our category broader and grew trial, look basis, liver-dominant have as Devoro with globalization portfolio which a In Cardiology, patients and launching that XX% our ongoing In Interventional forward goal we and III year supported MCRC ongoing

the with to positive health we Our improving world share. a patient focus the in comes impact on responsibility have

and Catalyst as we their ranked guide workplace. in Companies continue passion sustainable as governance and values of our that and providing them that Award, cultivating practices the corporate business balance, announce both our Most and for global stronger work a the communities. a XXXX make future, as organizations I'm and commitment part inclusive top and XX recognition create us received deliver we American a global do long-term workplace producing Boston I'm to initiatives citizen. Scientific women for grateful to as life building global and a the better our Scientific and products our and to advance environmental, team Boston jobs, benefits diverse the also of social proud creating in to Our contributions Just for premier measurable progress,

we COVID, last and for today it. to challenges years patients the We're over better building us stronger are enable few have faced While capabilities we will customers of new the future. and that both our serve

evidence and long-term double-digit our spirit. enter X% very accretive operating generation. margin XXXX are with while remain positioned their continuing employees over our past best flow are to continue companies to financial We financial of to to strong in I'm growth, Dan our products review X% I the in our adjusted will clinical technologies. cash year, continue and We markets, to new winning organic to that to leadership markets. commercial and on expectations. expansion, innovative in well growth these EPS enable innovative evolve category-leading goals to with We grateful we for committed with now things acquired positions, exciting turn adjacent structures investment product high-growth several revenue focus to forward-looking performance

Dan Brennan

XXXX range end as of growth million of XXXX, XXXX slight $X.XX. revenue in well of driven a Full of X% expectations at Preventice, share fourth divestiture earnings to our consolidated to Lumenis X% guidance our adjusted divested represents a versus versus Sales an growth XXX quarter of includes the improvement represents Pharmaceuticals tailwind XX% of for of exchange. XX.X% the favorable businesses performance reported of XXXX of revenue in versus a the XXXX share and the in BTG $XXX revenue revenue XX% the $XXX health businesses, revenue the recognized sales than sequential Adjusted On in $X.XX revenue sales growth basis, was intrauterine growth the in flat and Medicines, $X.XX organic acquired more pharmaceutical margin operational XX.X% end quarter the foreign in high our businesses, range slightly was sales and guidance guidance of million Pharmaceuticals foreign XX% $X.XX the Farapulse to operational $X.XX, XX% contributed Specialty higher revenue and specialty basis XX.X%, return Fourth growth from towards Mike. in range organic versus from an X.X% health $X.XX high recorded XXXX, Lumenis. growth achieved to and XXXX our $X.XXX exceeded and our range Sales growth XX.X% XXXX, quarter versus end $XX $XX represents a Specialty XX% exchange. the from of tax which XXXX. X%. from in our line Preventice, X.X%, XXX of revenue acquisitions was acquisitions divested above and versus versus and points, organic million year Farapulse XXXX growth of Lumenis Lumenis, business, X%. well quarter to the XXXX organic XX.X% to the within XX.X% and reflects reported XXXX including with revenue growth reflects $XXX was basis the adjusted gross basis end Pharmaceuticals offset by Compared versus midpoint growth fourth XXXX as QX. prior of per per billion XXXX. full quarter. guidance our represents by the year and in excludes fourth growth of offset earnings of million XX.X% growth businesses revenue businesses, midpoint XXXX QX partially On of sales This Full XXX the contributed adjusted above This year of from to including range guidance. range sales Vertiflex, guidance X.X%, divested a of basis, BTG the $XX.XXX high was BTG XX%. million Compared our in billion of from of XXXX, year nicely headwind XXXX Preventice, as Farapulse excludes and contemplated tailwind to consolidated intrauterine Thanks was acquired growth Farapulse by of of XX.X% points, point our resulting XX.X% growth rate. million sales Interventional of QX the divestiture. again, $XX X% reserve guidance quarter in WATCHMAN full of BTG Preventice, resulting $XX the This guidance growth as and and of sales million to X.X% Specialty in range

gross We and and face margin, wages. measures, included freight to which continue increased higher running of with plants on the cost environment macro headwinds pressures direct COVID-specific price costs labor

as in higher costs, in headwinds variant As we saw levels price plants increased direct Omicron with material variances. the driving particularly of our well as and December COVID-related pressure unfavorable absenteeism surged, on manufacturing

realized variances and on reminder, a As sheet an six-month approximate are capitalized balance the period. manufacturing over

in trends, the expected of year a by are historical margins the impact XXXX the unfavorable of sheet of As line margin versus be the the manufacturing lower half that In XXXX of gross second driven capitalized improvements. full margins balance first anticipate expect and cost below result, be recognition to slightly the gross we the by half branches of and improve XXXX. XXXX typical XXXX, half, cost lagging half on improved second to first of Gross we our headwinds standard second half full standard revaluation. driven COVID-related with will XXXX versus

Fourth $XXX a million on margins details which a end XXXX, in and program, includes versus Our to representing pre-COVID average be further margin prudent of XXXX. improvement adjusted adjusted remains XX% to full In annual time. $XXX I'll basis gross margin Millipede quarter goal the light Mike lessen margin gross plus we to to our XXXX average XX was was and of to over On were increased XXX the XX.X%, basis of margin year to Full operating was within provide outlined, of XX in range supply improvement a margin second pressures, XX% in a for operating asset point long-range a to chain a year a basis, second quarter resulting felt over disruptions longer-term expect adjusted operating as as intangible expenses, levels and a high with half of range impairment full and the of litigation-related GAAP XX.X%. plan fourth moment. year million the X.X% related provide of XX.X%, goal representing operating and it the global XX.X%. points inflation half discontinuation return

million and the other expense line, million and $XXX for expectations. XXXX, in the line below $XXX totaled QX year adjusted in with full interest Moving

quarter fourth on X.X% rate an adjusted was Our tax basis.

tax Our X.X% rate items full the discrete of accounting. and year stock from includes benefit adjusted compensation tax

these our diluted X,XXX rate million X,XXX favorable weighted shares earnings. tax our expectations, mix average operational in our by shares items, of outstanding and million to at full shares XXXX. flow free $XXX quarter net free $XXX for Adjusted operating year activities, of $XXX million was expenditures. cash was the with less QX million Excluding geographic flow cash driven X.X% Fully $XXX million capital was from ended and for million,

For delivered full operating less versus adjusted for adjusted $X.X XX% cash cash favorable flow increasing of free our expectations flow with year billion free free year we cash lower billion capital We billion XXXX, $XXX our the $X.X net XXXX and and by activities, of of with of finished working $X.X expenditures. sales from with exceeded capital we a recovery full balance flow with position DSO. driven as million inventory year growth

COVID-related on at continue XXXX we in invest aim material manufacturing, free we adjusted while impact above or flow, be to with XXXX, availability. direct to our less For inventory cash and labor

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

to of close QX on hand. acquisition to Medical the We with funded continue in cash expect Baylis

in last to QX, With we million $XXX litigation ongoing our Our top respect tuck-in and opportunities goals. $XX million reserves, assess and we'll liability M&A, remains to active remain for with to our the material product conjunction in high-quality in years. booked priority mesh which neuromodulation seek we the capital includes continue in related financial continue space over to legal to three the Australia. cases prompt of mesh and settled, Materially to U.S. and for all change outlook There's claims claims no U.S. the claims. resolution million claims been $XX related

now as for million the walk was December reserve legal total year QX and XXXX. guidance full XXXX. Our I'll of through $XXX XX,

a include closed. not guidance of it the acquisition not does As Medical yet reminder, since Baylis has

points in pharmaceutical approximate acquisitions in We to growth which an current XXXX, year XXXX. $XX and operational basis to the of XXXX be X% XXX basis exchange from full includes XXX of and million a rates Lumenis, pre-divestiture versus Preventice, range of based from Farapulse X% point headwind revenue specialty excludes foreign contribution on and sale expect

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

We contribution growth an rates which X% versus Farapulse from Preventice, expect points XXXX XXX operational exchange of million the specialty first includes Lumenis, acquisitions of point approximate be quarter to a and XXX current from XXXX. excludes in of foreign range XX% and headwind in to revenue and pharmaceutical based $XX XXXX, basis basis predivestiture on sales

and accounting of to Excluding year range and X% to XXXX rate is expect R&D bipartisan provisions related revenue believe enacted, to would first including range delayed acquisitions we growth a of rate TCJA that operational benefit of expenditures. be such adjusted approximately organic treatment to XX% our there in operational rate adjusted. We the forecast expect our XXXX. compensation. divestitures, of reverse rate XX% versus impact to these note, the to XXXX in provisions effect support historic we in with closed its the XX%, tax a from be X% the tax XX% take were to full if legislation XXXX approximately for headwind includes an quarter tax standard from XXXX to the stock be revert of Of tax our and forecasted We

expect We to of for in to look XXXX. quarter full be and $X.XX. earnings be mind a adjusted in to as the items few for to range you first of per $X.XX a year to the model in $X.XX keep A to other $X.XX share range

expect shares more stock detailed operational weighted XXXX. Investor costs and payments, and year, turn QX VC XXXX financial our website be QX for the year. that, will billion a include dilution Q&A. full results. for year to highlights, which we and the interest billion XXXX back Please expenses, the outlines count our our X.XXX approximately I'll for share X.XXX the will portfolio approximately dividends hedging check shares average which below-the-line expect and who With QX for Relations of Lauren, moderate it to $XX from associated program be million with We approximately Preferred million fully for diluted $XXX

A -Lauren Tengler

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

Operator

now We session. Instructions] JPMorgan. first [Operator ahead. from The question-and-answer comes the question begin Please will Marcus go Robbie with

Robbie Marcus

minimal half few implies Maybe XXXX. ago, just on reiterated margin margins up lower with expansion comment Dan, the margin of XXXX. operating just planning run that we off that, a rate ended XX margin on the guidance very you're start you can than And bps we from second expansion. a weeks for

few returning target So bps the maybe weeks. beyond? for to walk XXXX you us are And through that and expansion what past happened XX in

Dan Brennan

Sure, the points the Robbie. end been Yes. and range. our XX be always basis the of guidance high To is has goal the is goal, clear,

our XXXX was guidance half XX.X%. XX% And second average So XX.X%. to the range is in

So deliver the basis absolutely to that is XX goal points. still

thoughtful as always ranges, rest points, we is being done Just range provide thought and macro which thought have But surge range. of providing and to deliver have the assured, and over to inflation the global environment headwinds the that our from prudent that December, and XX in the the basis but still January to supply just really disruption, timeframe, goal a prudent outcomes. intensified given Omicron we we chain provide

Robbie Marcus

somewhere this -- of it's it the about just as of it. thinking of range? how for is and bit And it's midpoint still should semantics going XXXX, the think Or ranges think forward? be a we the we in I

Mike Mahoney

we supply our say, continues We of ease half 'XX of of morning, order. more macroeconomic gets I provided headwinds. that and in goal just in to the is chains we given some the the Yes. the Dan that COVID I to supply XXXX, the see, range do said, deliver and macro chain Robbie. should -- good some as as chain but wane second would believe that would

goal deliver our that we to for range. 'XX, reiterate, is to So but just that, provided

you line As that. tough the more and COVID supply to 'XX continues in we impact to versus beyond, be that macroeconomic with could look 'XX chain it's predict and improvement margin given in more most think to potentially the enhanced that there's do environment. less assuming the 'XX, 'XX in call people get But opportunities as norms,

three-year the think the deliver XX of get in points period the And is that same. number XXX per the second There's in to Day challenges. over macro three year, half still XXXX improving do there. Investor overall stay over the nothing will of our our years despite to continues So we and year, unchanged environment the points better goal basis goal basis

Operator

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

Larry Biegelsen

Congrats on year. a nice finish to the

Yes, Just on WATCHMAN. of course.

I Just are What I'm on you'll Boston. sorry, assuming December. growth you what half in for WATCHMAN, in about of in this share how far are confident first Amulet XXXX? in mean, in just so DAP with you the XX% the claims WATCHMAN the get seen label U.S. guidance And Habit the had you've year?

Mike Mahoney

the exceeded had to Sure. And for international and expectations. think is big also helped the the utilization perform WATCHMAN, size that's It market fabulous opening year a of continues the I current we the to confidence WATCHMAN see competition fabulous quite well. by And quarter. accounts, you're new the referring seeing by market. QX results growth. our difficult maybe in a product frankly, very and thing increased FLX in the doctors, physicians' With

the not of position we're I and growth terms were XXXX. we're quite I confident size share elevated, the about talked a quarter think of previous the competitor very seeing what result results the understanding We is quite in that bit frankly with growing and it's So, think fourth the quarters. line XXXX a in think growth because that we saw market market rate of in really into

of in rate So market. see the size any growth we the quarter didn't to fourth hiccups due

FLX lose XXXX, that some infrastructure or that very on. Ian momentum set confident that exciting we're coming to data the the So share. the the going clinical We've have, super WATCHMAN have. comment Ken we are can we in got we our of in platform, performance But

forward So bullish talk to going the here. maybe on we're And very WATCHMAN DAP you want label. about

Dan Brennan

Yes.

I first label year. think of the choice the of NOAC that or get capability that to the patients we're confident, We being Larry, half able that we'll give therapy. very in DAP of the want

got that position. we've So we've pretty resubmitted. feel confident We

know, have that we are results that Europe in Europe, in approval already on patients As in and you great label. who

problems further in any foresee that don't label. we So, achieving

Operator

Joanne question ahead. Please Citibank. from The next comes with Wuensch go

Joanne Wuensch

Thank Briefly, for about two curious I'm you things. the question.

And show And correctly second M&A one stopped? one this I'll your does towards for so, program? there. been I if program that that Did is first then, has a view Millipede the mitral The for out the hear year. just what mean

Mike Mahoney

think the have, made invest the of when opportunities our the the venture see XX months. and the feel set Millipede with deals in near-term portfolio well I Millipede opportunity products portfolio. at you the areas we understanding we on the came take to We in we that's that our coming Scientific a that be context really we opportunities decision done frankly, know, across pipeline we a I'll next one. half and years two And last as as at can quite venture to coronary across XX the We it'd structural richer looking Sure. that our -- on and composite the that program. portfolio at money as portfolio, invest Company over WATCHMAN Boston in, versus from whether venture look of the that in complex we've about heart,

making some success. progress. of investment product. was market the it. at opportunity safe portfolio. financial look see was basis really a program But We've Importantly, And Millipede our we across choices the versus when had clinical better the overall the that we It's

growing the clearly, here. where get to extremely overall, hopefully, success we're portfolio Europe. structural XXXX ACURATE multigenerational by U.S., WATCHMAN's starting nice platform have our our of to we share in terms indications. coming fully growth clinical that really In that is and well enhancements trial even year-end The enrolled, and the we're in and enrolling in in neoX And seeing anxious biggest

going opportunities, the not we lithoplasty. area. investments that detail heart in lot and here in failure like to importantly, investments mitral lot organic that some emerging we have In a of But in multiple that we other do a programs in also venture space we're have through of support, terms circulatory

cardiology like. business, across have a obviously, the well. new we of we see there's And that as number within we our others full that segment So opportunities alone,

made we looking at think the and that the portfolio investment, the was it broadly. we decision was So best financial return on

Dan Brennan

the And the question M&A, business. the across rich first landscape is Joanne. with pipeline to on to then and Suffice the entire respect say,

in very seven M&A. And the a one high-quality all You heard we of various number consistent is is tuck-in lot units. of that allocation were list basically priority it. properties business in have our across interest our about We long, me talk capital and

to of look So, certainly the should see XXXX, likely handful but us XXXX. tuck-in activity level of you a for for not deals that you in saw in

Operator

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

Vijay Kumar

the were Dan, look the EPS end, I at If right I guidance here. I I Baylis, I have on Baylis, it's moving think If here, had about some numbers Omicron, supply $X.XX your have guide correctly and of Jan. on the these probably in just the the just early right, that numbers high Jan, parts back were known comments Street at not With delta. guide mean, that chain, street one does late below rate. things the understand December,

and looks it incremental being the given your margins be of So share feel a comments count. gross about like tax seems below to line doesn't lot up. It this a in

is margins that to line below about us EPS, could you is the line the age versus the way top delta? think all versus and right street This operating or issue. EPS on So a maybe through just if walk delta that

Mike Mahoney

Sure, Vijay.

this I can in be regard. I think helpful probably

from And there's hit key would cause a I what see, So difference. think of probably areas that you I couple on that three them.

historical TCJA outlined. to rate, First provision That's I guided is we've XX% with which that the all-in tax versus XX%. that our

worth tax difference happen models, for XXX We're believe clearly appropriate and macro of -- as And $X.XX staffing That from each some some It's as that, think we this. with I given said guidance what of updates to that what should the to and you relative start long there's as a that's environment. that When mentioned just high revenue range of Street have guidance to with at those the lingering million a rest need front today And the worth our well those on XXXX. margin is pennies, some have points I respect the expected. And well basis below-the-line modeled. on pennies might what the Street that's housekeeping uncertainty is and depending look delta to modeling our folks at to year. year, some end the COVID frankly, a expenses. see, in range. the being is So I folks operating very be $XXX couple

prudent start So that we as head as we've make And year, range got into we plenty we to left. of the time a sure had wanted we XXXX.

guidance look rest the you just range. the that, is difference high that's is end at our if So of the at of the Street

a So pretty three I that good take you difference. reconciling of those the does if think job factors,

Operator

The next Antalffy. question comes from Danielle

Dan Brennan

well. maybe as that Baylis, comment on Sorry, on

Mike Mahoney

our and put said announcement And on we today. press release clear we for out we that's numbers that Yes. were Baylis, very in was not the when $X.XX that deal, accretive in XXXX,

be it if that numbers, in when that closes, were So back. we'll that $X.XX people's And to add shouldn't be.

Mike Mahoney

Yes.

want questions, Dan's to Baylis piece our but the -- to the rate all be given is think included given and to get count, push the the margins, we what this shouldn't environment, tax it. improve on is and elevated do margin stretch The we'll comments, we'll to and XX%, is -- goal share our we I just to EPS provide goal a range there.

business, operating goal consistently. we've So like terms to the continue improve the of be margins to in will done

that count And some laid below those tax then of matters line out. the on share and

Operator

next you. the go Thank from And comes Antalffy Danielle Please SVB ahead. question Leerink. with

Danielle Antalffy

this range have that WATCHMAN quick the a broad weeks think Dan, weeks about wider question, to changed your bit more is I conservatism and ago messaging that specific than few I it I just make more want follow-ups. materially have really like But correct comments to one ago? to That's not a XXXX. first question about that's little anything just bullish the how WATCHMAN came one on have one away guidance harp seems a issue. and few people versus but reflecting sure from question, we my

Mike Mahoney

Sure.

Obviously, -- I has changed. we've gotten changed some into January. have think mean things rate the as I tax

headwinds, the at we and we environment we -- little the points. Relative hadn't seen The the guide. given laws time have guide on the January. end of actually balance QX. a data, know that's chain We now data basis that books you've So some our guidance. for macro what manufacturing disruption. to are time, the seen last of of -- in tax at of on worse recent things have the absenteeism year. closed and that's global COVID inflation what as variances sheet get I some XXX the tax are And in supply bit manufacturing the plants the We enacted the

appropriate So all And necessarily would XX and just wouldn't basis it's conservatism. through. it state I an again, to said think I we Mike points range. call have say, I what a going that to deliver environment, goal. was it the prudent thought is provide just given macro hard to range. work XX.X as the we what But team. to we're is The

Danielle Antalffy

And a Got just it. Yes. Understand. on WATCHMAN. then follow-up

I meaningfully market? appreciate pretty -- of But early just from market with a it's the the are Given how from to markets the monopoly market better about you -- about talk competitive when player they entry, expand growth potential seeing in way a or days, historically, is you're guys I it was about what expecting maybe sort duopoly now thinking second cardiology a to from expansion -- very a growth that. the curious just go perspective,

Mike Mahoney

at we They're running seeing of Yes. good We could not if just like called which strong growth, expand more, growth given that QX. slightly potentially we trials, are market we're are, and -- over Investor clearly XX% what market an and Day a market. time. saw it's clinical the market, they're a company, And type exciting in

market well. the So is growing very

and additional will differentiate its a platform we've WATCHMAN very use. FLX in the to in continue infrastructure with ease to strong data that And profile our got place. think of lay continue I terms safety out global of will

there. lot momentum of there's a So just

but We're second And was here, confident. some position for be share strong player in us meaningful so, driver like given a to our will going lose in a 'XX. just this we're it quite

Operator

go with Matt from ahead. Suisse. The next Miksic question Please Credit comes

Matt Miksic

and made follow-up had out comments one that other Millipede are some on of of the that you I and there. So sort portfolio the options regarding strategic investment and

opportunities and on comment is a about as I strategically have of one Or big either to follow-up, any if think your of I structural important? And the heart you part mentioned there? degree and CRM investments of Maybe talk was one I you well a one could is those bit you of you Tricuspid further HeartLogic maybe understanding don't If strategy. and other what digital, could. little view could if areas sort as

Mike Mahoney

with Ken, you start maybe stuff the want structure. and to the Dr. HeartLogic Meredith on

Dr. Ian Meredith

to HeartLogic impending diagnostic month Yes. currently the trial, to granted our Thanks, we've is media implanted heart provide in everyone devices warning discussed in of have rebaseline to with study by are my Again, prior a population clinical currently our previously to CRT-D And Matt. what to eventually technology But exactly a confidence of able platform. degree applicability proprietary Day, in be gets a designation to on breakthrough proven we to on failure CRTD as ICD we Investors and monitor do effort. just we our do its broadening that same LUX-Dx heart to algorithm bring that, devices, will make that beyond goal take the it is entire engaged haven't cardiac FDA need high who enable that really right, a And for we and heart failure. the of that in our order are eligible that trend modifications the broaden at it decompensation. failure patients the platform, are patients LUX-Dx our we implantable but to

Matt Miksic

structural? the other areas on And touch in

Dan Brennan

Yes. field, as in growing to important with see aging Thanks field a increasing and Ken. particularly of the a Mike. heart this With burden very failure. population Tricuspid, we Thanks respect

respect simply with get the and on to across a portfolio. the Tricuspid, said, decision we have heart execution both future in was it Mitral the and out of technologies focus and structural to space decision wasn't existing to the a As decision Millipede Mike of

move we that that from to space continued space. be But won't the this as away in have Tricuspid tricuspid shouldn't We interest and investments outline mitral a taken here. decision

Matt Miksic

Okay. one Great. follow-up. then And just

cadence throughout of in. XXXX, lot acquisitions of a this contributing rolling But of are growth obviously, new of drivers kind have, importantly, that have You you currently. strong

how in Can maybe in look will of that you us to throughout points the additional a would sketch what contribution be growth year, report super? XXX the terms like the organic mentioned basis acquisitions You give it of those just not thumbnail QX. organic additive quarter-to-quarter,

Lauren Tengler

I Matt, March on offline that Preventice September, next take first about they can in can the August Lumenis do is really about And phase in then as one that but talk then in We offline. with and you. X. Farapulse talk we

Mike Mahoney

Yes.

in be I would that So 'XX. think obviously story -- some short there'll some be the in benefit

Lauren Tengler

Right.

Mike Mahoney

one-year Farapulse, benefit from some and anniversary in a number. lot you Preventice and 'XX the from Primarily as more operational

nice 'XX. some impact there'll 'XX, in more in but and limited be stronger So

we'll what the as 'XX, for in which is businesses. finish a think I question of overall I the I was the it proud of performance in year likely had script, that of more acquisitions, share the our just portfolio like we quarter the mentioned of really the few fourth And a regional I'm in we or 'XX, only the beyond the the was that think and terms quarter feel the year share we share position gained strength strength in excited do and we're did CRM CRM, about but And in across some held we year, as well. every each in really share region actually for the of performed soft extremely nice well. a And quarter fourth in full our is where the spot probably terms single best across quarter Company, business.

BU but regionally we're quite did good. something of provide business that guidance enter year momentum as proud and across the So, quite the We appropriate environment, trend exiting the 'XX was here. we the given the has each

Operator

comes Taylor go with question ahead. next UBS. from The Please Matt

Matt Taylor

about things of the what's the in I one that us talk QX, into your and an lot color of there second how through imputed the the half low Maybe end ask could to and didn't about you end you update high wanted here your recent year? a on quickly hear and think trends. give assumptions just recovery range, come I you could for gave back for recovery. you

Mike Mahoney

Yes. Thanks, Matt.

-- you throughout our inflation right? And 'XX, just assumption they're environment the as see clear, factors that only all be here has but and they that don't chain, to had of of Omicron we're through wane the supply ones. So is of less for year, QX. macro there that the the But of is supply the you obviously in will go and impact to we prices. continue that, impact -- that get moderating have on an would goal there as and I global is supplies impact at as as 'XX 'XX. the would the the at And disruption, more rest we well think look with we belief in the than chain December look in we're as expect moderating that part be first was that present see XXXX year, COVID, We normalized, --

that see us particularly even the gives half, to macro we relative had that just future, bit through 'XX, a more year. brighter go as get a frankly, environment waned you operating in it as than better, as and for that margin gets also as and and little So, that reason it margin the and gross we second true in through And higher better as XXXX, be gross optimism to COVID just margin lead trend the historical we've past, that's that higher 'XX, we should the progress the operating to get year. through goes but guidance margin, we had should should in it underlying in a gave. that it That's

Dan Brennan

you our pretty seeing what ranges see how and is when good why see wanes. wider a at when that's happens and become strong the you business business COVID We've peaks, with there's COVID

but in full starting impact some do 'XX, sure. we it expert less for versus trends anymore, So, this in will be year that's on you're impact COVID better not I'm see recently. to believe 'XX But the of a terms improving and

we a impact COVID to staffing the we as it and part expect So saw of of the, is in terms the on. kind January, hopefully, get what points shortages, year better toughest in goes February this hopefully, and to December, that

Matt Taylor

far one periods? and in follow-up? or so a in prior of I you're That's by a more more immediate terms post-Omicron, seeing you really of quick helpful. formed do I what quick ask recovery gradual this period guess, Could snapback expect I mean,

Mike Mahoney

year, the had quarter. and we numbers, then a at first another Well, came last saw will and slowdown all fourth quarter. have just wave but we quarter fantastic saw third we we little as I this slower look Dan And a second the quarter in improved XXXX, a time saw

So, is the business good business the -- quite snaps anyway.

business when is back. more others, snap it neuromodulation needs But So, responds to like and if good divisions we quite urology, business well, see who impacted. wanes, quite especially are the it's COVID the not and greatly like

COVID waves and that So, well couple wanes, year what and how now know it improving strong. through we business is by manage way, during we've the a while trend when seen learned quite also of happens to the margins, we've

Operator

The next question comes from go Cecilia Morgan ahead. Stanley. Please with Furlong

Cecilia Furlong

just versus well as to you And ask specifically Japan RF seeing in an what as just there Can stands EP business talk Can POLARx? beyond I trial, versus cryo what Europe well. update then on you're in just terms Farapulse where seeing wanted your U.S. provide your in specifically. you're on Farapulse of as enrollment early about that you trends? around

Mike Mahoney

one? answer want do that to Stein, Dr. you

Dr. Ken Stein

there Thanks Thanks Cecilia. Thanks lot Mike. Yes. unpack. a to

that our in to we positive accounts. that Farapulse commercialization really Europe. opening POLARx, growth new pleased mean which And of And to we've fantastic again our accounts overwhelmingly the of we're in has just and seeing in three with growth unique technology; catheter I technology, been Europe. with you the open the and business all DirectSense then right? able sensing reception with as combines me four broad-based. differentiated it Europe growth balloon; with as our been start that mentioned, StablePoint, laid Let started the the really technologies early cryo Mike in extremely that proprietary out of continue script, it's really really

the -- trial. the of we with ADVENT pace are the again, with United in enrollment progress terms our trial very pleased the in of In States,

think I've settings, design. an in said it's I As other trial adaptive

pace tell going trial close get previously are said fully many Investors before our what FDA. patients we So, to Day can't what continue and and that deal that need and and one-year we we to closed enrolled to we've was anxious follow-up expectation like very the with things be to at the our submit it. you we But we're exactly on when how complete

Operator

And Chickering question will Bank. come ahead. the go Pito next Deutsche with Please from

Pito Chickering

sense due us backlog color If some to into makes to COVID staffing quarter, you which and color neuromodulation you is growth procedures. of the their deferability for color And But the on headwinds approvals fourth division, within SCS finally, can there side, drill the the think we any impact, fade? give any growth as versus on the about the as competition And then DPN on COVID DBS specifically in how should XXXX for product Medtronic on geographic and U.S.? the Europe any NIVO? with

Mike Mahoney

process as there. weights bit COVID But you and can't a bit time. And I'll seen to do of business, of our cancellations how and seen to some procedures, kind this the a Sure. across rescheduling control to a neuromodulation kind with urology try the snaps market down business, the we've quite of frustrating we've answer all with that. my back. quickly Similar some of best elective the board it and

encouragingly, quarter XX% minus 'XX. full versus market, that X% flat second quarter Neuromod. X%. difficult But at grew versus look I despite grew 'XX and think 'XX and Fourth results versus it with you with our If year, 'XX

faster than -- that's our have what So the fourth for our some of quarter. competitors actually outlined

pleased we're So of overall the performance group. with the

can capabilities share in the future, You to ask for than and to to the do them -- much improve. gain will invest more and continue market

they're and signal seeing. was at these SCS share we that algorithm fast lot that a this have by that the our I XXXX the in. driven beyond, in commercial data teams, indications, interested and we And that certainly a that we're you and something presented clinical gains business that the we're good and NANS is being supports have with think as innovation So just for at look that's of

have enrolling XXXX, we are back in well. trial plans in for We our as DPN and virgin

So the expand But will which doing for and it's all stimulation us. treatment continue we're be well. DBS, cord of market in those story to the the great quite will about marketplace. a primarily spinal 'XX And pain,

area nonetheless, sizable it's snaps wanes. business COVID business. COVID, for That become that to that's been a another kind and continue us. that But when in has impacted by of back invest We

significant that share position the Europe in expect 'XX. us U.S., to we in again growth We nice a have and and a be for driver

Operator

session. This concludes ahead. question-and-answer our Go

Lauren Tengler

get you interest your team. Relations us Boston question hesitate joining follow-ups, We to for in any Thanks today. appreciate Andrew. your have if Sorry, to unable Scientific. were don't please to If we out Investor reach or to the

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

Operator

note, attending February one at concluded. X-XXX-XXX-XXXX p.m. replay recording hour Please XXXXXXX XXXX now dialing conference by using will The Thank a X, X-XXX-XXX-XXXX, until Time. be or code in has Eastern either for today's you presentation. XX:XX available

You may now disconnect.

Boston Scientific (BSX) 2 Feb 222021 Q4 Earnings call transcript