BSX - Earnings call transcript Q2 2024 | Boston Scientific Corporation

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Operator

Good morning, and welcome to the Boston Scientific Second Quarter 2024 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to John Monson, Senior Vice President, Investor Relations. Please go ahead.

Jonathan Monson

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

of to under posted have the Filings. section our website reconciliations Investor heading to measures Financials used as well that Relations We non-GAAP release in the and link as a the today's call of

will the be guidance will QX call X our duration hour. QX questions. Dan morning's The year and of including and approximately provide your take performance Mike this XXXX business, we'll full and as outlook on then comments well as for

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

that for I'd call, period a are currency fluctuations full begin, like the excludes impact excludes everyone further which net of divestitures revenue comparable remind to acquisitions of on the we and there and foreign sales. revenue operational than Before less organic

Relevant the acquisition respectively, vacuum Acotec which majority and Endosurgery portfolio in XXXX, organic April Relievant the as and well in Medsystems, closed stake growth endoluminal XXXX. of and acquisitions February, are acquisitions Holdings Limited March in which Scientific November investment of closed BBron, excluded the as our and divestitures therapy Apollo from

to which expected announced conditions. the Divestiture closing acquire include are the XXXX, endoscopy, in Axonics both pathology subject in half April agreements of to previously of customary Sicobe business, Guidance excludes the which XXXX. to closed and second Medical close

website. be Relations may QX please operational information, deck, and section found which the more to on the Investor financial For refer of our highlights

cost savings and product like meaning margins including rates, include, cash and This within our contains call sales, and forward-looking and of and They flow trials, otherwise are words laws, as be acquisitions, anticipate, this share, growth specified, use the all among securities new unless expenses. expect, may, performance, On and other tax launches, estimate growth as revenue, other clinical words. our federal about financial anticipated other may expected opportunities, believe, by and references similar well which sales market approvals statements identified statements our cash, spend call, R&D to of our organic. things,

XX-K be If Factors assumptions filed actual risks from that or turn with certain include underlying expressed our those expectations XX-Qs in the out or results recent Factors to most implied forward-looking uncertainties our and incorrect vary subsequent section materialize, by or may the projections and of the materially SEC. statements. Risk such cause described differences could our

as by obligation This to Mike. of At we disclaim statement except speaks only Mike? any today's law. as them, update required turn I'll it or point, date, this and over to intention

Michael Mahoney

Thanks, John, and everyone, thank us for today. joining you,

XX% strength particularly the by to of expectations, winning of differentiated portfolio, guidance sales cardiovascular execution Our high XX%. the of ] sales global our exceeded in led In our range second grew team. the results quarter, XX%. Organic operational of our grew total and [ spirit second global company the AF XX%, end quarter exceeding our Solutions

our Our grew regions by businesses to above leadership. clinical strategy prior continues generation well with top-tier market. evidence category our and most growth and Consistent of innovation, quarters, be fueled of

versus $X.XX to $X.XX versus of the of EPS quarter Second $X.XX. adjusted of XX% our end range grew guidance XXXX, high exceeding

margin the previous year. points and adjusted versus to operating for revenue as a adjusted performance first upside expectations, of to quarter basis Second operating XX.X%, half margin XX we full expand now expect and result XX our margin was

unit. year particularly for Turning guidance raising XX%, XX% quarter XX% XX% to portfolio, to EP our reflecting year our outlook. to of 'XX full organic XX% XX% across and momentum business third full broad the We're from and to third to growth guiding quarter in to our

quarter third $X.XX $X.XX of our to to EPS $X.XX, representing $X.XX, full to XX%. EPS adjusted growth is be XX% we to year and guidance adjusted expect Our

on X as performance launch details versus X units, This business businesses. I'll half of an grew XX% additional with growth well outlook led on by more was our growth operational and XX% strengthen growth operational robust by coronary driven 'XX. basis, 'XX. provide in in grew in EP, Regionally of will the success second an the [indiscernible] basis emerging markets. the imaging by as our the impressive provide growth of our the strength financials, quarter FARAPULSE WATCHMAN, Dan MedSurg and quarter for second some Europe second fueled quarter color and the double-digit on continued in and U.S. across our in on the exceptional

in region Second data the the following quarter our also positive quarter EuroPCR at a business, heart conference. NEO structural presented X for on record recent ACURATE was

by We expect valve Prime continue ACURATE 'XX. size in this the momentum larger launch to supported the of late

excellent performance growing in Japan and Asia a high quarter growing second Pac operationally in grew double XX% China, with difficult versus 'XX teens comp digits.

recently Japan of the also drug-coated half FARAPULSE China FARAPULSE We year. balloon in approval second in in this continue approval and received expect for and for agent to

will the XXXX. expect ramp We contribution from over these launches

do full actions geographies Within grow low into in pricing and expect digits Asia the these of the went of pricing in imaging effect impact actions. coronary half with Japan reimbursement the in the including on cuts VBP June. double Pac year, key a quarter, China second We to

Some on the units. additional commentary business

to We which urology early the laser expect driving urology, management grew our market prosthetic with in acquisition continue of to Tonacio year. efforts release by growth therapies Our Axonics, International of Rezûm. look direct-to-patient was of the announced stone this second from half driven pump. we and the and growth business of quarter awareness supported in limited X% previously by the forward patient contribution closing this organically XX% in double-digit and

organically Endoscopy quarter. second in sales grew and X%, operationally both

franchise. Second quarter in by Axios endoluminal franchise teens driven were our growth growth above-market in high results and [indiscernible] in led high-teens our by the growth surgery

sales and X% to than grow the quarter. by innovative in faster sales the grew market expect portfolio. operationally enabled 'XX, to We Endo XX% throughout organically continue Neuromodulation our

brain with grew impact low competitive Our single from franchise some launches. product digits

of the driven strong quarter, digits by mid-single and the digits year, our We an franchise to In double operationally grew half pain this second organic expect portfolio differentiated our on business basis. strengthen technologies. of second in

Our in we trialing the improved quarter, spinal U.S. U.S. cord stim that cadence the franchise of half and business in second our expect year. saw improve SCS will the

grew by extremely Intracept Venous organically in in data and with The Intervention relieving double-digit single-digit well, the more versus with our operationally of date. perform portfolio X% arterial by treated second XX% Peripheral in Mid-single-digit was the supported by PE momentum growth quarter. system and ECO continued Varithena. to momentum driven business continues driven XX,XXX than patients double-digit the growth sales quarter. set was real with High drug-eluting growth to continued in growth in

Our grew and franchise embolization in cancer across Interventional double the digits second Oncology offering therapies. driven broad quarter, our by

announced to close the previously Medical of the expect continue of we Road forward, to in Looking half acquisition second year. Silk this

Cardiology organic with in and versus Within grew delivered 'XX. global Therapy Cardiology. growing quarter quarter franchise APAC Cardiology, imaging calcium strength coronary driven sales our Cardiology sales excellent another franchise. by X%. Interventional second therapies in continued XX% was Growth

has limited launch received U.S., of agent the the quarter, a DCB we Within which feedback. positive initiated initial physician in

follow-up Latin ACURATE double existing the Europe meeting. led new valves present completed America. quarter, continues Our and digits the structural the second also ACURATE grew both strong of at we end We U.S. now first patient likely in expect by franchise full in in IDE quarter, XXXX At to data ACC and in accounts annual the the of X,XXX of the a trial. cohort which growth this half to neoX, heart the from see

had Cardiac XX% [indiscernible] quarter, organically WATCHMAN growing indicated into clinical in led XX% the by further The another in penetration population by ongoing Management Rhythm the the from Pro grew WATCHMAN existing awareness grew organically, with the of strong sales evidence FLX Japan. quarter. and patient enabled U.S. launch patient our and U.S. innovation, X% efforts. excellent contribution

the HRS growth, CRM single quarter, growth data pacemaker EMBLEM partially deactivation a all high and comprised cardiac slightly by patient Diagnostics U.S. broad digits. In In pain low was and below above-market is request core the recent by At market rate from and due business grew our meeting, endpoints portfolio. growth grew trial with our of a ATP's in the digits, which for X-month franchise presented CM, with of ATP low-voltage offset modular met prespecified was to the leadless the diagnostics EMPOWER of which driven no the high- S-ICD, strong of international modular second pacing double discomfort. system, success or This

system. by sales EP grew sustained 'XX quarter FARAPULSE XXX% EP. adoption transformative the driven the rapid to an second organically versus of Turning and PFA impressive

efficiency the as outcomes Second were of and increased driven AF workflow. ablation outstanding supply FARAPULSE real-world sales supported robust commercial volumes, by quarter execution, well as the by positive

U.S., of WATCHMAN continues with and XX% Access growth Internationally, Baylis see XX% strong robust also openings approximately Europe launched utilization double-digit the utilization Our approximately of PFA and of markets. to fair Solutions APAC business continued in procedures in saw pulse and account we procedures.

Nav-enabled Fairview safety, catheter, Importantly, the the the treated Fair expected published second U.S. with And and reproducibility the year. which presented been FARAPULSE or system. at the to study XX,XXX wave evidence launch has half in PF in NAVIGATE both module we demonstrating and conferences, quarter, of than completed efficacy more patients within medical the of the of software of the enrollment of during are

need with cadence the to to sub-analysis to of first arterial ablation, of our a the meeting, With trial At in enrolling more to We data including than steady very PFA continue presented. to designed arrhythmic PFA demonstrating burden and the FairPoint for study who outcomes less the RF in leadership planned of is randomized significantly system we X.X% versus catheter achieved redo and HRS generation superior a ADVENT recent having ReMatch a This expect early patients from patients compared plan [indiscernible] cryo. modalities. thermal clinical 'XX. efficacy an FARAPULSE a begin which were AF, evidence maintain to trial

I'm their of closing, to team global for commitment very millions patients. grateful to us technologies winning to In enable and life-changing spirit deliver our

financial the a meaningful it as that, I'll innovation. exceeding a company hand track with record With One while most delivering to chapters of or Dan. over exciting executing of our goals

Daniel Brennan

Thanks, Mike.

point billion which Second revenue XXX was unfavorable XX.X% of $X.XXX exchange, reported our quarter foreign includes quarter versus growth a represents from slightly XXXX headwind consolidated second expectations. XXXX basis and versus

quarter. the was in exchange Excluding growth million headwind, revenue this operational foreign XX.X% $XX

resulting grew sales XXX points, XXXX performance. range $X.XX closed XXXX, to sales driven of strong exceeding impact $X.XX, basis QX of to of revenue quarter of second from exceeding acquisitions growth, high our guidance share earnings XX.X% organic by end adjusted versus our range per primarily our XX%. The $X.XX XX.X% guidance XX% in was the

the quarter higher-than-expected the FARAPULSE strong commercial year period, related prior quarter. the the points Adjusted second by in well Polar XX.X%, gross increased given margin to system was x the as driven cryoablation as U.S. versus charges XXX of levels basis the adoption for placements of PAUSE in contracting inventory capital

than margin continue We to our higher driven half benefit mix second product launches improvements. gross the to expect of and half cost by recognition the first from full standard adjusted key annual be

our adjusted below We slightly margin expect XXXX be full rate. gross year to

operating Second period. prior margin basis quarter points the versus which adjusted expanded was year XX.X%, XX

first adjusted the XXXX year XXXX. Given we expansion basis our second and XX half, full to strong for are to half XX expectations XX compared from our XX goal margin operating basis points to margin operating to raising points our

included operating which Cryterion FARAPULSE a impairment sales charges strong top in rates quarter the from Devora the intangible invest a were high The impairment On strikes Cryterion Medical. to line delivering performance. charges our and incremental to drive believe ablation conversion asset basis, XX.X%, continuing related nice and appropriately margin GAAP this margin balance of second We U.S. to the to related for procedures of was acquisitions Medical of cryoablation to upside

discontinue the impairment charges The Devora to platform. decision to work the were thrombectomy Wolf related advancing

$XX favorable Moving second adjusted tax second was was quarter interest our an On tax to rate items. totaled XX.X%, adjusted other below expectations. to expenses quarter discrete the for line, basis, which and includes our the which million, favorable

rate quarter XX.X%. tax was Our the for operational

with continue of million to less quarter outstanding to in at ended items. activities, we payments million which to the year $XXX includes $XXX shares second XXXX, for was cash in average free million restructuring, approximately million, cash million special second flow $XXX of Fully capital operating from $XXX litigation expenditures, payments Free $XXX acquisitions, $X special million expect billion and related expected diluted shares quarter. flow net X,XXX related which the exceed includes full other to items. In weighted

June on XX, we was leverage of of hand XXXX, X.Xx. and $X.X billion, As gross had ratio our cash debt

our from pre-revenue offset employee share agreement electrophysiology strategy, closed Our Silk PAUSE acquisition technology allocation complementing privately held the priority alignment announced medical top existing followed our our of to strategic acquisition to Medical intracardiac M&A, and stock dilution In [indiscernible], echocardiography Road an capital a by company acquire with remains grants. product, we in tuck-in developing annual repurchases QX, portfolio.

$XXX was XXXX. XXXX. million I decrease already million through funded June $XX will XX, reserve this qualified of legal of million walk and of a our $XX for now versus Our year through is guidance funds. full settlement as reserve QX QX

year to of a XX.X% full reported be versus in range expect XXXX We XXXX. growth revenue XX.X% to

XXX basis to approximate foreign on we revenue XX.X%. an expect rates, XX.X% Excluding headwind year growth XXXX exchange current point full from based to operational be

Excluding be closed growth in XX% versus range full a year from acquisitions, XXXX XXXX. basis contribution revenue to a point XX% expect XXX we of to organic

basis versus XXX growth third point current rates. reported from quarter XXXX, third XXXX a foreign on to an based expect exchange revenue headwind excluding of to range approximate in quarter XX% be We XX%

expect to closed XX%, be a basis XXXX growth from third acquisitions. We quarter XXX XX% the contribution to revenue excluding point operational

quarter organic below-the-line XX% XX% in We range versus to revenue million. be XXXX to $XXX expenses to year growth expect approximately expect a third be adjusted full We XXXX now of XXXX.

year first in issued enacted of X a Given of contemplates current we expect under XX.X% approximately and tax and full rate the an adjusted including of legislation, XXXX, operational half rate which Pillar guidance XXXX discrete items tax recognized XX.X%, OECD rules. laws approximately now

from share an from is of a growth headwind of to We expect exchange, to our $X.XX $X.XX XX% XXXX which versus be adjusted full including to previous foreign earnings $X.XX unchanged XX% year expectations. in representing approximate per range

quarter expect share of a $X.XX per to earnings in $X.XX. range We third be adjusted to

on XXXX to will Relations Q&A. guidance. results the operational For I'll back our Investor check who with details more QX turn financial highlights, John, information, And XXXX QX please website for it outlines and that, and which moderate more

Jonathan Monson

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

Operator

The comes Instructions] with question first [Operator Robbie from JPMorgan. Marcus

Robert Marcus

question, ask big another congratulations sustainability. fantastic one my about I on a And want was it is -- With This a the quarter. quarter here. guidance and to

first PSA A is had the to outperforming. You continues a lot great quarter. of WATCHMAN all of had a business big fire clearly quarter cylinders. rest on the

that is guess, Is better really a not think through do of revenues foreseeable elevated for you this pull the adoption, expected question feel year, So healthy forward really the better seeing future? back organic in XX% long-range is, something the underlying I'm about and XX%, the rate. plan? Or the And I you half keep maybe there's pricing do market continuing 'XX but better the of volumes, 'XX. really could which how for into demand, about

Michael Mahoney

is in in the we our But to 'XX, do a at. the in weighted Investor take many decade-long that into I primary portfolio And 'XX years to think flat. come. X% X% average rate shift seen kind where closer and one is you've company goal give shot I'll did that tech guidance our sales said terms of be we Day, to company, is we at We're to growth, of to Rob. going probably drivers here. the to not our was the be Sure, used which for versus to to it market believe markets what EPS performing 'XX and med faster-growth highest aim aims of for growth do

faster we growing markets. So our because one, portfolio enjoy of choices,

we Secondly, world. across have the strong growth

then as FARAPULSE at is And you just seeing yet well double have the well. where strong X% likely growth, half doing to percent first obviously, call, think X-ish Asia look but You're the a launched. other digits the double you digits, Europe and on MedSurg talk through continued WATCHMAN Pac U.S. lot of to within We'll see FARAPULSE I And quite the durability businesses. not our about businesses.

diminished because So of the but that pretty of some gets that's good. other kind of strength areas,

ASC with what coronary future. benefits potentially Boston to with the and with then you and stronger and solution. we're ACURATE also, maybe And procedures results would our And in balloon, stronger. some we is think, move EP, Scientific the in time an doing Europe, portfolio reimbursement concomitant franchise, cardiovascular Baylis, may the EP our just With given with these saw also center over drug-coated benefit knows, who which getting

a had a tough with 'XX comp in we So XX%.

give full the XX%. now for and year guidance, and to the to ourselves team portfolio have won't but is from Our revenue guidance and of the We is 'XX growth to terms the group EPS, our do XX% peer goal it. really distinguish be in we

Operator

The with next Citibank. from question comes Joanne Wuensch

Joanne Wuensch

going this next? echo get we Can like little I I are this what's about at continue point, a to lot, very but about talk quarter. just you nice to now how out think how people bit to Watchman kind sort a your roll deliver not question, and growth. we do to a unpack -- we're may a forward but FARAPULSE this looking does of and And of lot,

Michael Mahoney

Yes.

it's think Joanne. -- I thanks,

I the I some themes highlighted. just similar of think it's to

weighted -- average the start. consistent markets market a we're We have We see higher growth rate in volume around world. procedure to

We be giver, we where a are significantly. price used environment a to pricing in pretty

Now negative to getting it's closer to X. X

also year. we We goals front, our up margin for took the the on margin expect

upside time. product We have get good over a now, primarily, margin would expect markets. leverage. period. benefit expect which very fast-growing the LRP We margin getting very in Right is we from to over more SG&A we're more cadence gross strong And improve gross to just margin

the market, market you medtech, rival X and to know, obviously, as years now. our TAVI Through significantly it'll the WATCHMAN. to EP from the best increase X that TAM of PAUSE where markets in WATCHMAN, all of

portfolio, in Silk strong and the portfolio, in to we market bets with and venture and evidence make So continue the we'll our M&A leverage. different to and clinical which place that have we Axonics fast-growing is continue

the the of of in competition. but playbook continually this execution the better and markets it's out-executing the hasn't So putting team changed,

Operator

The Wells Biegelsen next question from Larry Fargo. with comes

Larry Biegelsen

in on to FARAPULSE. for on you've maybe effectively question, of share but come. can EP and your continue understand confidence I By is, and compete a Help EP and to your quarter Congrats down they [indiscernible] years growth quarter, durable guess EP when drill and captured growth our driving us a the share. Baylis. Mike, like for market just really launched? of EP here. nice a driver what's the the looks the excluding sustainability similar U.S. to how about Boston it growth just math, And with Scientific it's be can XX% the you here second VeraPulse

Michael Mahoney

So I'll companies how start calls -- have some talk the physicians Boston prior, comment. Scientific heard leading that the you've we're their field profile, now of many terms clinical fibrillation its on platforms. A. the for the the PFA differentiation We're of with evidence us never the clinical all usage really, of using and data With many about completely companies procedures. maybe today the then Dr. physician [indiscernible] competing with those can Europe. FARAPULSE J&J, and And talk in using have in considered really to on in converted FARAPULSE and safety of of who them our

relatively the additional and to coming portfolio and we to and in in do less of additional yet more to indications we're coming. China, months launch and than launching early U.S. lot U.S. in Europe have in But have we the still a It's we've yet in launch have Japan, our we and in X launch

with combined we So for our clinical many be a for to Baylis,combined will years growth with is driver story FARAPULSE differentiated platform, think come. the Boston short the

unlikely, the the in but be to as scale to of a XXX% maybe Now Scientific here.. quarter, business we come grow years over it will to biggest it this expect up continues Boston

Unknown Executive

world. just efficiency persistent for mean, common just [indiscernible], market I the mean is the that into of overall the penetration for size and to therapy double-digit still and sort Mike market. arrhythmia add are ablation, on maybe to simplicity the I safety the continue penetration going penetration today the efficacy advantages, advantages right? AF just most sustained drive just high -- the is Larry, and I underpenetrated, afib the of of AF Ablation And FARAPULSE that paroxysmal for in dramatically single-digit low think system, to Afib, advantages,

said frankly, first-generation terms early again, right, In late competitors the this see Europe. next approved competition, bring do out of we to And in year, as Mike already year, they're technology products FARAPULSE Europe. their earlier, materially expect in competitors. sustained against really that these a And not the right, important transformative FARAPULSE of differentiated seen we impact have is with rapid advantages adoption

published treated traditional over clinical the testifies It's simplicity As efficiency the Mike in right? on data testifying referred said, XX,XXX trial to really we data to to to patients over now at against only any Mike right, again, the presented [indiscernible] superiority the XX,XXX the to actually measure date, and data safety, which system date, to efficacy an right Society, with ablation. patients

Operator

Rick The with next question comes from Wise Stifel.

Frederick Wise

great also dock to about cases, mapped being interest obviously, in now encouraging my another was I've hoping many with PFA from of In checks, perspective. I recent deal a are And other talk companies' heard RHYTHMIA. systems. in

mapping integrated us maybe that Just system outlook launch do that's when How some the on more your the for RHYTHMIA the impact and a of percentage second half, growth result? RHYTHMIA implications I mapped cases think on the assume for we on could your the target. in the about as adoption be give you catheter still color

Ken Stein

certainly I wave expect and to NAV-enabled Rhythmia projecting completely a of with that approval appreciate use do new suite and of Rick. Fara help Faraview that question. still support Thanks, the that. FARAVIEW the on Yes. are help And both more we software calling adoption accompany drive we we're Again, RHYTHMIA to catheter FARAWAVE. our of

or mapping advantages support FARAWAVE some provide terms workflow. though, by NAV systems, an will these say, to competitive FARAVIEW system. expect we'll that with Now of support navigation, remain workflows I but also want involve open any use in We FARAPULSE don't want to major that involve to workflows begin, of and

understand I all. RF systems PFA for I may think built existing ablation navigation [indiscernible] an were me don't emphasize at paradigm. important that around and They mapping

mapping be understands to software is do that FARAPULSE. and PSA fundamentally FARAVIEW the we so with a what first with going system and And

dynamic from And configuration, to put of visualization specific the important procedures, are There the minimize the that you flower, features, of exchanges use when tagging, during fluoroscopy catheter as catheter together it these changes potential has continue think minimize of begin, basket FARAPULSE field I some really is to shape all and PFA to have with right, as to compared is to accomplished think and safer, I what to is which create what more doing procedure with and do far least we've have that people a and is at effective been that simple efficient tried that legacy energy. systems.

Michael Mahoney

And is as of seen based is sizable Mapping on some know, procedure. on competitive the you've the side, seeing you used, the you're financial the of increased FARAPULSE chunk EP procedure a And efficiency. volume reports. being overall when

some are from gain benefiting FARAPULSE. competitors productivity that of So

in EP more today addition the not opening that do expect a to seeing in which broadly you're and revenue centers, physicians additional that utilization FARAPULSE 'XX, new adopt is number in said So this rates strong procedure. to impacted of platform we Fairview Ken

Operator

The comes Kumar next question ISI. Evercore from Vijay with

Vijay Kumar

here. the growth. in the on the the -- question on any U.S., I its for number. parse mentioned was contribution Can had PPT And has what think contribution Boston catheter congratulations outpatient X versus My U.S. -- [indiscernible]. I the capital in XXX% a setting, experience in you you on update submitted USPF,

Michael Mahoney

Yes.

know, that clinical that's a the physicians you on probably on comments TPT, And on the of efficiency going the And have not as a But we'll Disposable on to obviously bit provide the question. you to color and proper the adjoining Ken, pricing that the and capital, efficacy for premium. benefits we're seemed but do are overall pricing, more the Unfortunately, capital disposable. is and point. out for and do on you customers any than price that? based is sizable thanks break that. the So be

Ken Stein

Yes, Vijay.

a to very I which rapid So just eligibility TPT. important and there we right FARAPULSE. as for the And recognize sustained seeing Again, for have some to adoption submitted reiterate what are TPT. are is, strict said, I we pricing criteria to now, Mike not think barrier for of think

Operator

question Next David from with Goldman Sachs. comes Roman

David Roman

technology you bit side. right about about And in as But of bulk could the little I both your EP think and going on little want keep a right to talk now, a business you also, commercial strategy side, bit sits the the more now technology the the side. ablation and

But opportunities little that's talked evolving non-AF the side a new mapping be should the of or ablation bit for importance FairPoint some how the think portfolio access. that it the about of other you, unlocks whether and in we with how products? of You and about market, the

on generator training your the for and to side, And So opportunities the you for mappers are pull-through portfolio? And then are here? where example, the the benefit should replacements on about commercial ICDs? overall think how we

Michael Mahoney

areas There ICE doing We another one. XXX(k) based $XX impact commentary the which for hopefully I continue that XXXX. we're as have strengthen, to that AFib the to product, are program, and we'll chunk Again, will tag ICE and you is with mapping segment It's -- LRP do I is is now about the well Asia $X the will you question. is of a we're in this guess organic team get an period, market in move other market. into hopefully, we The Thank it. Ken large of we platform approval, and trying a this. slice which that on during be which the competitive a previous the number to new billion in try maybe best market billion know, we'll med It's tech.

bit clinical what doing that for FARAPULSE widen we're And out more a the detail Ken beyond is indication the to studies can probably used today.

Ken Stein

Yes. Thanks, Mike.

think standpoint, the with around just clinical exciting which is as and a little as standpoint labeling Afib is more begin maybe David, a technology the our get trial about then doing to well clinical the as let trial, that say to going we're aimed enrollment. clinical all lost start with excitement where right, FARAPULSE from stuff important, for get doesn't So FARAPULSE it's ADVANTAGE other strategy FARAPULSE me completed because and persistent a we're I has

year. those We results early expect to late present year, next this

trial run ablations. announced fibrillation. a called to as FARAPULSE prove atrial [indiscernible], with for the in called for underway well are FARAPULSE intent which at is patients to first-line trial redo persistent therapy look that used will We've We ReMatch, aimed which a

a already From talked FARAWAVE catheter. we've standpoint, technology about NAV the

in And In its a I that's think then down some you And fibrillation, clinical imagine, tachycardia, and technology addition called catheter to get trial. more interested the the we much [indiscernible] catheter, ablation of sophisticated mapping beyond lost. other FARAPOINT can innovations think of point as name atrial have that, many and road, tachycardias catheters we arrhythmias pretty are you FARAFLEX. use for don't it. the that want I this both atrial through to I But

the end be so not the portfolio. our And the and FARAPULSE which question, between reimbursement driver that good pull-through we have mentioned, to in ablation obvious performance good a performance FARAPULSE of WATCHMAN from concomitant see procedures, the likewise, products. terms this very most Again, Mike story, right, and the fantastic the with only of opportunity, the the Access of see and growth CMS. now expect in hope as solution a right, in solution Access And synergy solutions pull-through, EP products, terms synergy think I in FARAPULSE year was the WATCHMAN finalized really by access for before opportunity will [indiscernible] U.S. to is and between

but an procedures love only and we Again, just very [indiscernible] way is a the Dan potentially long-winded ICE EP it of story. procedures, probably support to also mentioned FARAPULSE, far WATCHMAN our of from saying acquisition product

Operator

comes Wood with Morgan Stanley. Patrick The from next question

Patrick Wood

was guys and exciting ability into appreciate And you yet, might is that to just the if unpack would overall plug could note, to if that's closed and be asset package how but maybe into Anything right guys relative love in sales? that little that flip you Obviously, what for flip you [indiscernible] it script the And and on I something overall? the meaningful [indiscernible] Silk drive that to capacity great. everybody. around with announced the TCAR so and I'd different. a hasn't that And Boston

Michael Mahoney

close we've a in Hopefully, second at really long terrific a Silk year. Sure. is half to we that time. aim looked asset this that for the

field and that years right of leading a were And through where of it price. to evidence enough terms their at ramp mature it clinical point really the was they we the a performance the of As U.S. and it to stand-alone sales kind their rejuvenation us for its over in business, felt came in acquire many

always guess, durability indications. pleased starts with data first and long-term the with all, of really the procedure. I We're clinical it this So of

a clearly not as but there they're certainly So stand-alone faster, company, margin accretive on Boston to front. the Scientific growing

point with feel the company vascular So faster we Boston the we grow given surgeon. we the a now portfolio common in Scientific leadership a in category and have can call U.S. like sands,

other appropriately have we the the many for take our also company the And ability done as business also appropriate We profile to outside to operations U.S. team aim the we've it integrating supply within past. by the acquisitions the countries. of in margin to like improve chain

a needs an So area that it's would the an stronger accretive be within and we asset vascular for of think unit. for surgeon, that that hands us make I will more is improvement say, more is business and in which the us, Boston important profitable

now to surgeons team we the the our PI have Silk vascular -- the surgeon. the the portfolio, present but not capabilities the leverage, to vascular given Road with relationships broader So lever has that

Operator

of Steed with question Bank The Travis comes next from America.

Travis Steed

to TAVR. kind wanted there, TAVR. little guide the let change on willingness It to here, about felt also scale or your margin bit less those change guide and and kind given ask like of margins And wanted more Halfway and full a where strong that you're to FARAPULSE I through. flow getting a raise and I on of EPS the time raise tone of to continue there. of ask, kind at the to

the make on wanted update. anything didn't we just I TAVR miss to sure So

Daniel Brennan

the the I and gross one. can can TAVR start then Mike take margin Sure. on

So where relative gross to said, are corresponds we Mike margin well pretty in on the the the launch. journey? FARAPULSE As early with That United States story. in the the journey we're

of accretive standard So if relative you think are, for to where the margin we the is FARAPULSE absolutely catheter.

about things growth in margin little you gross to me charges driver. initial stages are dilutive The a with that's POLARx. respect heard bit the the a are that accretive So talk inventory great obviously,

should don't a the it be we but and -- of -- you're continues. take temporary be should that success them when FARAPULSE, it's not So to result as taking that's want something charges, inventory of when

time. So those better over get should

team we this so leaders have brands, built be manufacturing and chain the capacity The in manufacturing space. our to and our supply operations

significant we capacity. So have

product to So relative absorbed as today, under it's we're making the little a that.

the that's as the company, a So more take to edges, the better, relative for huge not and at it but overall the capital make placements that does we obviously, that will And then of get obviously kind margin a bit. down our plan. number it's dilutive. are gross Again,

every a the you would think accretive I And be quarter, FARAPULSE, and contributor a driver for for it be 'XX, will to as company. 'XX say better will overall, I into FARAPULSE get margin growth gross margin. So significantly

Michael Mahoney

outstanding team quarters On European done the ACURATE with has outstanding a neoX, XX% back growth. really over to and back quarter [indiscernible],

is maybe challenge indications to neoX Importantly, all has the that the which quarter we next-generation quarter for matrix, us and launch expect an Prime, in to our delivery optimized frame. has valve been full-size fourth risk the which first or ACURATE with XXXX in date

reiterate U.S. we to to of data And in just enrollment at expect cohort. first meeting. -- complete the the on the On likely patient 'XX of present X,XXX the timing, the half do we ACC the did

trial done the believe that's an control in we the and important and I groups of likely the It's half that follow-up we largest note last on 'XX is been based trial size is [indiscernible] the and at it's have of the that think and and really this the timing multiple in timing. risk to the the mixed patient appropriate extensive that ACC it. randomized first trial

Daniel Brennan

None to margin. is that as gross the just surprise quick a Travis. margin then relative follow-up of to question, gross a And

not margin saying XX story XXXX. XX. to to the So and to we've the able margin the is we're lo increase been margin to gross XX likely But along behold, improvement help to from in all overall operating XX

XX XXXX at is the beyond, think this and I margin gross margin look P&L Really lines I as to be journey of to you of all for contribute proud those. I can relative front. guidance expansion of And and So the well one expansion year. margin XX on to the all the will that think margin, think gross

Operator

question Cowen. Jennings Josh next TD with comes The from

Joshua Jennings

of on follow on the presentation? see of and -- we line. the taking I supporting profitability tech just Travis' TAVR, could X up some could to this profitability that? the before ACC we top Boston get then presentation the questions. through med growth outperformance revenue on seeing going sustainability reinvesting in flow and before lot top-tier that from year on driving guys a Congrats results. sense a could Where of just high-level that profitability you're the wanted is on guess, commentary data first to follow-up reinvestment where of dollars some the in stellar Wanted And just I just top those other next on see and file you on line just that the space.

Ken Stein

TAVR Yes, then Josh, and question take I'll maybe Mike others. with take the first the and Dan

all us miss various based [indiscernible] and data of that major what Last abstract complex just was the follow-up the trial, deadlines in in to meetings. large, cleaned getting of for the we the very a on going from just engaged Just are the this said, patient the honestly, timing Mike very trial. the quarter, the trial all fall right? [indiscernible] getting analysis it's getting the in for And readouts of are

deadlines couple within So weeks. of those come literally a up

present major these are meeting. We again, so And right? this at data a to want important and pivotal,

first not the data meet deadline major of able cardiology released abstract be ahead you meeting, ACC. And so Would any be is to the see that. expect going an to where right, we'll to

Daniel Brennan

second and relative through. to the the of reinvesting between And part your balance some upside dropping the sales question

evidence think XX. I the to seeing guidance of here the in our that for you're XX raise

that. struck really a think we've I So good balance on

the first upside ahead of that bit little a year expectations. half we sales had closed realization the and we've during So the

giving that So of some we're back.

we're the to XX So XX to taking XX. to XX the

great. that's So

At time, the office revenue that functions. when are the the areas, the which We we're reinvesting at need we business, grow the to leveraging you're primarily same back don't sense. rate commercial at. growing facing in the in those administrative makes and We're the

portfolio then got we've in Mike reinvesting whole portfolio, said, is opportunities FARAPULSE. that isn't the have. there. And This this broad we So leverage as significant reinvesting across the just

to So we picked the for I think deliver that nice reinvest there. to balance line And right spots able top to striking performance a the to be we're long term. continue

Operator

Daniel The next question comes with Antalffy UBS. from

Danielle Antalffy

talk the as we'll about I launching a really half XXXX, Congrats a year record different in guidance into growth on And direction this and back go theme here away back PFA a and in here. appreciating year how Mike, well. that should I'll DCB quarter. be we from give awesome on think, I for here. if to of But this the broken wanted guess, or, this about we agent just sustainability think modular launching of half of second is

market well So the those how next maybe the portfolio. elevating as about as think contributing do CRM year we growth above in Interventional Cardiology

Michael Mahoney

for our those CRM for prior and tax pointing that our in by was you because agent not Thank from team getting team mentioning question. hammered out I the

on performance, high kudos sustain add things really transforming group the agent, said, they're come. So think indication And for the highly peer differentiated continue WATCHMAN before you to which that's about were team, as that -- to the with do if the to I and discussion, years maintain is from we how all expansion. with It's to we portfolio. many that talked PFA that and you for

time. what improve we will significantly of restenosis the our apply to made that where That's is Drug-eluting of of And seeing IVUS Scientific. we platform. approval and points. with superiority be drive that will in over the data imaging tremendous for going probably overall one hopefully, and And have we're And have soon that and growth Boston division stents in the price be with January. market and we XX% advantage appropriate at market profile you're to the have for our plan where a decision a and now first least TPT year multiyear X% margin accelerate imaging is to next growth agents, business that

the which our structural future for manage to Why the we very with able those consistently And clinical oftentimes, heart improving vast at team continue in investing investments science time. while portfolio. while we invest same portfolio. VC to come have dilution, a And our margins is and also, VC

So I think of part that's a it. big

study, proud the platform of you quite of the a CRM that. U.S. business bit S-ICD business a that bit very well. is with the lag ATP, and That know, did modular results do we're for As launch to us. was modular team a International the excited that little lagged the XXXX. a for long and you But in project. of difficult saw a

didn't before that So out. there mention areas X I are you that other pointed

Endo in And mentioned the here tremendous our today just growth is also, Uro and what's not being businesses.

Our half. near Uro first business double is for the digits

business organic excited margin us. We're which acquisition, is half. first in have accretive stronger. benefit for the even Axonics makes operational double divisions are But Endo the about it will XXXX all XXXX very digit in companies and for near Our Those primarily. just those

to a excited for about things to continue goal there's of So the of company differentiated performance. with many on future be the

Operator

next O'Brien Matthew question comes The with from Piper Scientific.

Matthew O'Brien

Great.

maybe Just news going of where [indiscernible]. on sticking kind just with of outside

versus QX. is growth bit tick XX% on of Just a little WATCHMAN the up business, a

the Your quarter. competitor said in XX% they grew

of losing this So I if market in concomitant it's know share reason. a of bit don't is little some are guys? reimbursement. the for you accelerate those starting to to Or front

to a a that? PFA Dr. then about that if concomitant specifically, plus time. [indiscernible] is And same much I just and doing reimbursement, other talk the case. of case a bringing talk little Stein the do you can you the bring get times WATCHMAN at part of bit about in sometimes you maybe have for [indiscernible] clinician not in more challenging this how workflow mean maybe Just case watching an for the terms the to

that about talk bit opportunity maybe a Just forward. going little

Michael Mahoney

is growth, midst just maybe new sheet, in the Pro I'll and early launching in We're excellent. the as which this Yes, WATCHMAN launch. its our steerable on importantly, Flex is XX% touch of

WATCHMAN science. and for data clinical for to that WATCHMAN speaks clinical think I so ongoing R&D of the the market we're extremely and driving and high share And itself platforms

comfortable extremely nearly in. and extremely very, may we're But WATCHMAN the small size our business very look lead, numbers. margin. technology business you are accounts it's the position that if occasionally U.S. the very small we be at some XX% And share very So with will and we're lose to. share we're price-sensitive comfortable our there Very, the in that of and

Ken Stein

in and workflow combined is and just the areas terms one Pro the safety advantages Flex the then where in this right, and Flex WATCHMAN with And efficiency between, think of I both safety Yes. of concomitant, could right, of The and advantages a is efficiency doing they involve FARAPULSE these X of beauty the a real as into together, ecosystem. transseptal advantage atrium. access create unified us for procedures left of

manipulation involve catheter the left inside both They atrium. the

it X to of having benefit reiterate, our do the it huge as of done there's a and patients to to same to as reproducibly at and you it you to X So a do the to we that opposed think and then enable first efficiently. have procedure to able risks enable second procedure what have done you when procedure. be And and to it go doing technologies sitting do you a just have all want procedure of safely through it as many go concomitant

PRO you're spending as mucking are giving [indiscernible] as atrium. possible, those FARAPULSE about unmatched inside WATCHMAN little And time So you together and FLEX someone's advantages. right, in

Jonathan Monson

And there understand question. time is for X I last

Richard Newitter

Matt come Taylor will with question Jefferies. last from That Okay.

Matthew Taylor

And maybe give on market Day how many boxes views experience there. How talk or on you several kind you ago. has great laid parameters like and in? the did early your evolve question about about you're changed out I the centers Congrats months want Could whether at could ask the many a on you've follow-up placed? on to thinking Analyst quarter. the us modeling any update Is to the with FARAPULSE. opportunity how help of

Michael Mahoney

of the once rates the usage, want part last We only sites, utilization very is color out provide FARAPULSE Yes, I catheter the they we'll sites I usage. that to would is on break and think don't capital quick say of piece many How use sustainable. it. of

many hospitals you of go in med seeing turn off not products. in So like it, and on it it tech out and see we're and turn

new customers it. [indiscernible] larger existing accounts. what usage of the at high to centers part very accounts chance second and moment. have we And is in a consoles was So opening FARAPULSE besides the And using the obviously, sustainability start to once sell more

with it ended a I [indiscernible].

Sorry, Matt.

Jonathan Monson

Well, us thanks, joining for everyone, today.

to appreciate Relations Scientific. interest If team. don't all the Drew you in reach hesitate your pertinent the we or have will you your please much. out always, to follow-ups, the were we any for get And replay. As before to so give Thanks unable Boston disconnect, Investor to question details

Operator

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

may You now disconnect.

Boston Scientific (BSX) 24 Jul 242024 Q2 Earnings call transcript