BSX - Earnings call transcript Q3 2024 | Boston Scientific Corporation

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Operator

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

Jonathan Monson

Thanks, Drew, and thanks, everyone, for joining us. Mike Executive and Financial Vice are and Executive Officer. today Brennan, Dan President me Mahoney, Chief Chairman Officer; With and Chief

by President of During will MedSurg and Dr. Mike session, businesses. our Stein, our Pacific joined Ken Butcher, the Officer, Chief Art and and Asia Medical Q&A be Dan

of release used this release announcing the in today's release. The our measures issued be the non-GAAP results, which We found used measures earlier of Investor a QX well the as call can Relations reconciliations as press in our of morning non-GAAP included reconciliations on website. this section

Please conditions. period XXXX, organic excludes expected the revenue to of fourth Guidance excludes comparable note, less announced for impact and acquisitions operational the quarter excludes of are fluctuations divestitures net to is and sales. currency on which the previously acquire Axonics, further which to closing the call, full of agreement in a revenue close subject there foreign than customary

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

references contains all among things, same prior to plans quarter of guarantees us our of unless the be and This organic today's and as revenue or call, and These statements are beliefs regarding, to available relative intended are events to and growth to business product of this On year, performance, development. specified. performance. current date performance information otherwise based the on forward-looking using our future are statements as call not compared sales financial other and

those Factors our law. except these disclaims Boston and or obligation of that could other to certain forward-looking out turn recent including results required intention or on such report by projected XX-K. reports any underlying as from are the update forward-looking may differences in section most cause statements, by actual materialize, Scientific Factors annual Form the discussed our the risks If our statements. Risk vary uncertainties or incorrect periodic with assumptions SEC, filings to be

to over it turn I'll Mike. point, this Mike? At

Michael Mahoney

you, joining Thank today. Jon. everyone, us Thanks, for

and results operational Our the the organic deliver QX to guidance grew we QX company XX%, sales range XX%. total XX% differentiated XX% our to our portfolio continue capabilities grew exceeded and high end our invest to performance 'XX, over sales expectations, long and term. In in of of exceeding

the spirit our be Our leadership $X.XX our to QX strategy, $X.XX. of excellent guidance evidence XX.X%. is of by global EPS exceeding adjusted team. clinical continue focused of innovation, winning margin end growth category $X.XX QX, range will of and adjusted fueled high generation and on was to our XX%, grew the operating And

XX%, Turning approximately full XX% to to 'XX to quarter to our for organic outlook. full across reflecting particularly of AF our broad raising year fourth momentum year the portfolio and guidance growth fourth and XX% and guiding quarter in We're our solutions.

few third adjusted full our will now on to is to quarter expect provide on and outlook. a $X.XX, guidance our minutes, EPS representing XX% $X.XX to fourth provide along quarter EPS Our XX%. $X.XX be and comments our financials year highlights we adjusted $X.XX, with of I'll results, additional Dan details to more in our growth and our

of U.S. basis, grew X with Regionally, or double-digit XX% in higher units. the operational growth on an X business

XX% This basis. Europe, and In CE PFA above-market performance account continue structural valve. Africa impressive and grew by openings complex Prime expand to next-generation ACURATE recently on received Our PCI we we new leadership, Mark operational an continued and TAVI, where heart. launched EP, in performance Middle EP was driven fueled FARAPULSE, our and our deliver strong business continues East to by rates. very performance reorder

President significant [ Xavier ], I announce to that many organization EMEA. for Tepo will to want of EMEA, thank of and his the at to currently Peripheral December; appointed in EMEA, Eric Vice of ], Boston role. his career XX-year be contributions Scientific, new President will want new our congratulate the Bertrand [ Interventions Xavier President on and the Eric following also I nearly retire a in

Zealand excellent in Pac implementations. with received grew recent performance we Asia in PMDA of operationally weeks. reimbursement China, XX% mid-teens Australia, coming anticipate and grew and system PFA FARAPULSE approval commercial the New Japan, In despite VBP launch and the

prostate grew provide I'll in Rezum double-digit growth Urology units. with sales stone on management now additional growth XX% our SpaceOAR. both business and and some in health, double-digit commentary including

we we device. momentum the XXX Pump the see to in to with [ fourth and this looking quarter and Elite the into Within announced our we're Tenacio acquisition excited our continue business. the close excellent Axonics to quarter, Scientific of forward, Urology Boston expect And LithoVue AMS ] the add from business launches previously of in

X% sales particularly strong Endoscopy grew the organically U.S. operationally X% with and growth, in

to products drive in growing continue growth Exalt quarter. above-market the anchor Our and double digits D, with AXIOS both

We're momentum see X franchise. to to business. loss recently a expected code weight this further growth our within CPT ESG in continue pleased the endoluminal double-digit which is for to strong We also Category surgery procedure, received

grew turn organic Releviant XX% November. which sales ], X% organically in will Neuromodulation and operationally [ including

replacements. returned Our in by implants de low the growth novo brains U.S., and franchise to quarter double-digit the in supported competitive

franchise digits single pain double operationally. grew digits low Our and organically

growth was that portfolio offset which pain by the below XX% SCS in XX% leadership and continues the rest operationally. performance of in Intervention our market Peripheral of expectations to grew strategy. a category organically our sales be the reflects challenged, Our global value

closed vascular pleased saw portfolio. Road Silk system innovative We're business, double-digit our to arterial to our in mid-September, mid-single-digit TCAR growth continued have Within growth in with in adding low of the and Medical we drug-eluting acquisition therapies venous. in growth our Vascular also double-digit

again by sustained oncology embolization franchise and momentum launches from TheraSphere. in grew digits double recent driven interventional double-digit Our continued and growth in embolization

continued Cardiology, rates. global The performance, our U.S. and exceptional with adoption continues agent strong calcium expectations supported with in launch XX%. both by quarter reorder of Therapies with of to the platform another our therapies account Cardiology coronary coronary growing delivered exceed growth Within agent our imaging sales Cardiology portfolio. launch Mid-teens new grew XX%. openings Interventional U.S. was and V-Go+ the

IDE commenced early in long to milestone. enrollment aging study completed our on and enrollment in the recently Vitalist the substudy Congratulations feasibility patients. also team We PCI in that ] high-risk [ lesion

U.S. digits to regulatory October third be neoX grew heart Our by above-market In quarter IDE franchise structural presented data the the ACURATE with in another strategy Europe. at led from double of continue TCT in the valves and XX. will quarter FDA U.S., of we growth and on the ACURATE our collaborate

WATCHMAN our innovation, and treated U.S. PRO for WATCHMAN drive efforts. WATCHMAN patient grew XX% Key clinical driven FLX WATCHMAN and near-term And surpassed our with globally, device, to awareness by evidence the continued the with we in Japan. in XXX,XXX recently conversion catalyst confidence presented for late-breaking the implemented trial if concomitant growth in LAAC as will Association positive, ablation. XX. data clinical from readout which And high including AF at this American and a November delivering trial, the be the the on Conference DRG business, Heart patients OPTION

our our Diagnostics the driven commenced from cardiac Management of [ study first enrollment ] In market growth the offset leadless of business, the quarter, Mark approval LUX-Dx, our We CE lessens franchise the this enabled in for INGEVITY empowered both in trial about our conduction SIMPLIFY In in X% within core [ post-procedure quarter expect 'XX. by to continue FLX the regimen, also in CHAMPION indication trial below Partec of by with which latest quarter. to sales quarter. pacemaker, received grew implantable ] Rhythm excited including and by in data single high third which now We're drug grew the the submitted our upcoming in we FDA half digits, expanded PRO WATCHMAN lead recently and generation CRM, have strong international was system FDA. new product the monitors, growth and launches received U.S. pacing, the which

Solutions execution, grew sales driven well our exceptional with by business the in FARAPULSE. efficiencies continued commercial driven as volumes by Electrophysiology and excellent in outcomes procedure quarter, an pull-through gained as increased Access XXX%

and We XXX,XXX to FARAPULSE, using have rapid RF cryo with conversion and over from specifically PFA, treated FARAPULSE. transformative now driving patients

previously to likely in range XX% exceed our AF now XX% a of this As market, we the of conversion result XXXX. by expect accelerated of communicated ablations PFA global to

China approvals XXXX. have our Japan to in the about We and launches these are business expect recent meaningful EP global on excited FARAPULSE impact and a in both

which our OPL with received of FARAWAVE a we approval USA exclusively cardiac mapping the catheter, with FARAWAVE combined system. Software NAV Recently, HDX procedures to ablation visualize

the And of are expansion FDA later the quarter results treatment early we trial, second the We in AF. completed clinical to expect follow-up 'XX with to and the ADVANTAGE label this to pleased have Phase anticipating of expected trial AF in presenting 'XX. the submit FARAPULSE with of I the results which half persistent in of drug-refractory patients evaluating the the is

population of patient GUARD also a patients studying [ persistent in new AVANT ]. in very We're drug-naive AF

few performance we the our we end elected confident term. experience, observations. pause extremely trial we have FARAPULSE. to the assess enrollment the enrollment, As temporarily neared and a resume remain of totality on It the And intention of unanticipated near to in the have evidence clinical based commercial is real-world this of to in unique

In the top-tier sustainability are of confident performance. the of financial of closing, our in global performance we're very proud our and teams

Dan to hand financials. I'll provide on that, and With details more over the

Daniel Brennan

Mike. Thanks,

which versus revenue a Third growth point our was versus headwind XXXX represents XX $X,XXX and of quarter of basis million expectations. quarter includes exchange, consolidated foreign reported XXXX XX.X% third from favorable

quarter. exchange points, Sales headwind, range than range the exceeding of basis sales primarily of growth gross $X.XX from third by revenue margin QX lower primarily foreign share million $X Adjusted guidance quarter exceeding quarter foreign anticipated, in XX.X%, the impact XX% was this third end high per our closed our of acquisitions organic operational adjusted XX% guidance our to XX%. XXXX, for resulting XXXX XXX $X.XX in driven grew earnings was slightly performance. XX.X% by $X.XX versus strong the XX.X% driven revenue growth, exchange. contributed to Excluding of

be first expect to adjusted continue be gross half year slightly than margin and We gross higher rate. to to full our the adjusted margin XXXX second below half

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

XX%. year-to-date full basis, strikes incremental quarter GAAP balance invest continuing On margin be of a adjusted now to delivering to performance, we drive a strong nice expect was third believe upside our line this from operating performance. margin and year margin our to Given operating XX.X%. approximately top strong sales We appropriately

Moving to line. below the

to interest million, our quarter which and interest tax $XX basis, quarter for favorable the XX.X%, to primarily On items. totaled was favorable higher discrete Third adjusted an income. expectations rate includes our was tax expenses adjusted which due third other

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

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

allocation tuck-in capital priority share from by to employee repurchases top strategic stock Our remains dilution offset followed M&A annual grants.

legal reserve reserve $XXX this of funded September million flat qualified QX XX, our of Our versus as roughly funds. through million is was already settlement $XX XXXX.

I'll through QX for year and now full XXXX. walk guidance

year full reported be to XXXX. approximately versus expect XXXX revenue XX.X% We growth

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

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

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

a Excluding XX% and foreign be fourth XXXX based fourth closed XX expect XX% to organic XXXX. we rates, point versus XXXX approximate acquisitions, XX% exchange, on expect XX%, we contribution from of quarter excluding be tailwind growth in to to an quarter basis operational a basis point XXX revenue revenue to growth current from range

We continue adjusted XXXX full to million. to approximately below-the-line be expect year $XXX expenses

under a OECD continue XX.X%, and an tax and current which of year laws approximately adjusted also legislation full XX.X% We Pillar expect contemplates issued X XXXX to of rules. approximately enacted and rate operational guidance rate tax

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

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

here There will a we related increase approximately XXXX meaningful to be with less interest a expense. Note raised earlier X provide million X to to and which close to expect business In comes acquisition, that move of we few line, I have Q&A, quarter. helpful extra housekeeping that in X cash Before modeling. earn X income fund QX. on want adjusted in this net fourth XXXX XXXX, the the here days versus XXXX, in $XXX may in QX XXXX, items Below business your we to related versus expect QX. in be Axonics upcoming the nonrecurring we higher which interest XXXX, to the we will year day in

news also likely while we have is XXXX of good should to offset operating deals and close at existing higher The of income the in the $X.X maintaining which our sheet. we incremental associated than to we refinance strong look coming expected XXXX, In with largely bonds due billion the balance bonds by this dollars Axonics. expense be approximately have the expect rates closed

In approximately rate legislation, we tax markets, margin faster deliver adjusted. highest operational we company our current be than tax digits aim our towards XX% will goal adjusted share expect year's the outperform to and of performing on tech last historical meaningful line grow Based rate XXXX, our and and to at in our with said improvement XX% being large-cap Investor as double med we per Day. sales of earnings global

which Relations our operational Investor for XXXX and and results XXXX details highlights on more guidance. QX QX more website outlines information, For check financial

to And it that, Jon, moderate with back I'll Q&A. the turn who'll

Jonathan Monson

Thanks, the Instructions] so. Drew, or for it let's next minutes Dan. for ahead. open XX go [Operator please questions Drew, up

Operator

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

Robert Marcus

here. Congrats much question, about another so here... to there's on ask quarter fantastic one My

Michael Mahoney

good it Robbie. Make a one,

Robert Marcus

upcoming recently hear CHAMPION of on AHA, see the WATCHMAN started alter that 'XX. the the gear October already OPTION and half PF reimbursement In consistently started we'll at X the our ahead could checks, to in with Concomitant, the combined has ablation, OPTION first for kick we that of in trial usage meaningfully patterns and

franchises, positive for I Concomitant the be mean thoughts both in your long that term? OPTION can and So and those the both importance wanted to both short of should on get what of

Michael Mahoney

comfortable probably the platforms amazing Sure. Clearly, patient, quite of well. color. with helpful I'll saw Doctors we the procedures. WATCHMAN very more be clinical positive comment today. for both safe and and Dr. own its Stein evidence, procedure with safety. benefits on incredibly can It's doing It's reimbursement, will Concomitant procedure. are also positive. independently, the the a for so add all you view results The are both economic FARAPULSE the very as hospital, for

pleased So we're that with really Concomitant.

helps a to tailwind to Stein, it's number WATCHMAN clearly And so for any long-term other platforms, trials to Both on an as ongoing clinical like of you'd have you further expand and different it? know, also FARAPULSE. make Dr. continue indications. comments And

Ken Stein

and it's them Thanks, No. at right? I for the the outset, DRG, patients, it's what reimbursed of Sure, Mike. advantages safety procedures of things hospitals, think FLX it's efficiency FARAPULSE, with you do the and I positive WATCHMAN WATCHMAN safety to CMS concomitant PRO. ability the and care mean, one again FLX reiterate with unique and and and health frankly, efficiency under those in given of for get system new Robbie. doing and it's that the us positive Mike FARAPULSE the said positive think procedures the for with outcomes and concomitant excellent and when you certainly of

scoring according of Again, at give of stroke just of approximately there And to for XXX,XXX are some the year high to those ] U.S. ablations like of right, every system. half the importance Canvas atrial patients roughly the this, risk performed [ fibrillation. are in sense things

is benefit? a stating will what to I read that think how when see benefit to we are those have, the think show OPTION all anxiously forward And and the right, that data they compelling do impact WATCHMAN, depend big it the obvious, on out looking if will show. I data gets

And we out Expecting oral then, all at reiterate beyond what new trial. also CHAMPION WATCHMAN said, look to have early would OPTION, that trial the to Mike comers. which read anticoagulants again, in the in 'XX, versus

Operator

The comes with next Joanne Citi. from question Wuensch

Joanne Wuensch

about how moving. XX% want quote the interested by I procedures FARAPULSE to you're what to to of really about to want you thinking said talk And we specifically, saw. XXXX. just global of results AF XX% amazing I and exceed was that

Michael Mahoney

Sure.

launch. tremendous just has this been So a

team field to this high teams. our shout a of manufacturing. product operations for supply that out seeing excellence in staying by the commercial Just ahead Extremely and quick demand the clinical and the the chain we're for

be ago. surprisingly we FARAPULSE, So towards year moving to doctors are quickly thought what surprisingly a it would

XXX,XXX we excellent team the over world the been meet same procedural to and is Europe in because And So when clinical our now in quite had benefits we saw the outcomes operations We've the Investor being efficiencies sure and are patients them. in approval Day, U.S. of have weren't planning And demand. now. those that received We throughout we felt safety momentum didn't scaled Europe. excellent

our that so. about estimate point ago So or was a year

we're it high to it's been at are on of the FARAPULSE. RF the within by stating And exceed XX% versus the based to transforming, that and do expect benefits we physicians on that show traditional for based And supported confident and uptake, likely studies cryo RF. FARAPULSE also PVI to traditional Advent end be from in that quickly the XX% especially how

plans a Europe clearly market leadership So on great are also out differentiation based we clinical competitive time the enhancements. in have that continue and market for have with to a in And PFA that the leader been and we've a while in physicians the product proven for we it's place in the patients. who our launches to lots and of extend

Operator

with The next Fargo. Wells Larry question Biegelsen comes from

Larry Biegelsen

be stay here. provide on Once PFA the of will yet? And congratulations launched, they trial Dr. if GUARD Stein, to factors you the haven't existing I'll observations given you color ablation phenomenal what to the FARAPULSE, that lead there echo and to FARAPULSE soon, market saw? related it AVANT including quarter FARAPULSE the are on my more new importance a or really going adopted these catheters leader. are that, FARAPULSE choices choose customers are with PFA more the for can

Ken Stein

Yes. Sure, Larry.

successively. take Let me those

as said, new FARAPULSE did to AVANT pause the in observations. due the trial is which we patients first, a better indicated enrollment is studying AF, which treat, understanding with Again, drug-naive is develop So Mike temporarily elect not GUARD. which to population, completely on a to we unanticipated until observations few persistent currently of

this at a term. performance of today but as none our life-threatening, is clinical did resume being other or system confidence the observations in no to overall in were way of FARAPULSE the While it pause the in And make temporarily our we intention to in it's the enrollments decision all commercially trials. affects near used

Again, opening as this drug-refractory his remain we're Mike said, FDA to the the Again, going Phase data persistent that AF data comments, later trial. Mike we that expect obtain said that's confident patients. expanded indication And ADVANTAGE in we from our to to quarter. submit as I for

half We early expected expect present XXXX, to XXXX. of to that data indication with in come second expansion the in

And FARAPULSE, outcomes more has for clinical XXX,XXX XX more data highly global device. across extensive to by FARAPULSE than we're the And than not guidelines, again, countries indicated population the that been confident performance want patients just studied, I under population and it's that's GUARD, today this we by which AVANT demonstrating ablation positive persistent the has of AF a with been now that system. for supported studying I remain patients which used emphasize emphasizing previously to it's to not population not in is today different want and drug-naive close also patient that being is treated in that's treat

what's And in ablation to continue I new that category adopt going question, several is to leadership going second to prompt field to users system. things. maintain it's why also is right, the think leads and FARAPULSE newly into which And pulse your

back and just It's I system. using doing I with they experience the the then of and not when of using started think, people a FARAPULSE. first ablation that it's of ease use nature to have just thermal clinical of compelling stopped ablation. has tremendous aware start straightforward all, and am anyone gone who this the

trial an clinical also that -- extensive It's supporting we've got data it.

at a superiority patients published had the had when to analysis of approximately right, the data. mentioned, actually globally. burden is as sub-analysis, outcomes that XX,XXX show data and secondary has AF we Mike efficacy ADVENT in data data, a ADVENT the anyone now first It's As look we by supported which clinical

systems in as as the those right, seen not markets. again, we PFA Mike leading Europe, the we've have And from that position said, seen right, where in really has launch, system detract that meaningfully commercial FARAPULSE

of last, And really really on on provides top system the in question. TheraSphere the in system, it lost the and of PFA, that's think cherry Catheter of to mapping first all sure the it's approval I make which just -- here, maybe other designed get now just that becomes your terms the then right, stuff doesn't FARAVIEW NAV answering sundae mapping launch around

Operator

comes question next Stifel. from Rick The with Wise

Frederick Wise

will Mike, a or expand hoping, the cat I'm on NAV that couple aspects. comments you Stein from of Dr.

FARAWAVE sort ready you market launch mapping Will that to going and what something "only was can FARA imaging? we obviously, other sell if Stein a with talking Just how first to And a you price? the portion all last going of will market, for -- well, scheme? manage technology are fully assume AFib", -- it NAV price obviously larger are Just to for cat train? and of it broader given NAV systems, about in the premium, approved how to fit you're to that as just the are integrated, does imaging at Dr. where argument have related huge a premier this higher approved is the in, like

Michael Mahoney

Stein? Dr.

Ken Stein

Rick. Yes,

take second to are that then FARAVIEW OPL the Let which on that we the get platform. of is some question see our first of what and HDx refreshed me right, unique to part on advantages

of And cardiac is mapping across the the so again, arrhythmias. spectrum platform right, approved for navigation OPL whole

hope at to right, was FARAWAVE reason think to Larry, seen when like success fantastic share used designed FARAWAVE fibrillation. I just a vein it's answer be can again, really is an also and to some pulmonary exquisitely not is explicitly NAV, fibrillation. to with it our the integrates the from as designed other able it specifically how of part had, arrhythmias. that persistent catheter. for we've And we've tackle ADVANTAGE that part FARAWAVE is catheter I to use that tool did we for it the reason I we give the And treat ablation atrial data the is atrial showing Now isolation. that But to clinical the look It's our ablating AF beautifully be of

The And our to for are called treating next catheter FARAPOINT was start, aflutter that, our follow fibrillation we'd it qualify use that pipeline as form of Catheter. FARAPOINT studied factor. Phase in our for But II expect to you completed a arrhythmia trial. in any ADVANTAGE could ] that catheter And enrollment have to that II Phase catheter we right, catheter is clinical point in And and patients. continuing of to beyond those for arrhythmia where of see [ adjunct procedures. sort would an really ablation used, prefer atrial ADVANTAGE

catheter building be will It's catheter. to that, in after large these map with focal again, that the is OPL, And really arrhythmias And so-called lesion target of and right, FARAFLEX, capability right? that us clinical are ablate our vast majority give of then to right, a the integrate next called practice. on all seen to follow able would which, FARAWAVE

that's it's and emphasize. of first terms the specifically, think This understanding important software post-field navigation FARAVIEW ablation. really I around In mapping again, is built to

catheter. tagging, a it's so or it's of them also to field intersect lot whether got strategize catheter it with and want feature and moves pulse doing a lesions various its they're basket advantages a put the of configurations, users able of into the called ablation to navigate It a hopefully dynamic And where how an visualization will in to where gives to tissue gives will as physicians or when it And to and between. anything to field unique FARAWAVE see flower a it when allow be procedure. where to in use better

Frederick Wise

just answer. part? the amazing price an premium And That's

Ken Stein

on Yes, specific I'm products, to on not Rick? going comment pricing

Operator

The Roman Goldman from next Sachs. question David with comes

David Roman

year. of kind you EP little to the bit spend and where I from of although the could And business. very if well, started on support of side resource slowdown focus the in a How of are just a trending established are drivers think allocation you was which of those gears the how ex-WATCHMAN go-forward about for a the basis? businesses switch growth minutes of some on those maybe those from thinking you PFA? should franchises categories franchises EP, the still And few the a maintaining performance ongoing hoping and in light the more and on about we success

Michael Mahoney

run Sure. give that, take business I'll very a oxygen some Dr. units. here. Stein We decentralized as

ICTX, And global urology, thousands XX% so do. -- and all they that's all the day peripheral we inventions, They think divisions, leaders of interventional these employees. -- have and have teams, about up They endoscopy, of grew, long think which wake the Neuromod oncology, what, in quarter.

of these So there's tremendous global businesses. focus by their the execution teams on

the Axonics of quarter closing in fourth the We closing Road. Silk announcing the anticipate of here. We just announced

attempt degrees that terms that. category Just we general, we're varying this as different breadth unique innovation very we of of of strong in across drive in Ken have area. said, division. each our and And leadership in success portfolio But in to

we've to really capital as that allocation, the significantly from of well as both obviously ramp no I terms PFA, those of R&D ongoing in manufacturing force. and winning clinical in detracted times, way enhance as But capabilities commercial well to spirit our as the which has sales studies, in And profile, So which making our these are we foundation despite improve other the of the same the shows of team. testament we're continue that margin across invested think the to and mapping at continue the doing businesses, the investments company.

So pipeline units. business a these we organically within have rich products of

year. for bounce procedure in businesses. but of business. a volume past where back performance nice did endo, specifically slowdown and the for essentially the some in in in those X the saw our see we We in quarters of we a the August, have seen grew bit line You've the quarter neuro summertime and September in a July, kind procedure full in

Stein and on company. Dr. in all lot bit I more does. on So Stein we gas Dr. we businesses take and time the the PFA, them, pedal But in -- down confidence other don't may don't a at have spend a of certainly we the

Operator

with The from Wood comes next Morgan Patrick Stanley. question

Patrick Wood

of just to do guess one are some I everything, were forward? WATCHMAN franchise keep capacity saying tremendous you a structural done? there's quickly, for the going time. still get the call people's between to bit a on and growing and capacity How enable efficiencies you constraints. the on overall. that one totality viewing to to adding in them on I little how EPs, noise in capacity players system. have heart We of for PFA think But system can And get saw actually adapt system there you these the Obviously,

Michael Mahoney

still we're we U.S., in In approved got February launching late in early in We and started March. our Well, launch. February. the relatively

that that still the have And U.S. many accounts yet of meaningful launch to not to we've FARAPULSE in and yet a launch So in other we have in China we new number in have countries. used Japan, a in way

early in markets. major quite very still we're the So launch in

originally systems. currently seeing many launched seeing we're and system from accounts, accounts to X, X move we're in And X X sometimes

FARAPULSE their increasing they're multiple of across utilization labs. their So

to do lot existing have to increase within share we accounts. a continue So to

efficiencies the know, are volume most are in of because workflow, XX% XX%, thirdly, day. doing, their and don't improving system, I hospitals procedure the accounts of then a And the Ken, more

benefit and physicians. a the efficiencies the of lot there's hospitals the patients do win and as So economically

this of procedure the concomitant a term And win is also that's for patient. on the and then hospital capacity, workflow big the to why your

you WATCHMAN. can XX FARAPULSE extra minutes now well the the a ] So system [ for with do as LDC as an appropriate XX, patient,

is which it So competitors. also procedural versus unique Scientific efficiency, very to our Boston drives

at and also economics very all we hospitals really early hospital. and we And concomitant launch design and helpful we're the still So think when of FARAPULSE look WATCHMAN efficiency of And these the efficiency. are we operational to platforms, FARAPULSE. in the

Operator

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

Travis Steed

I lot the I that trial morning. on wanted up this on GUARD of to questions guess follow a pausing. AVANT

the really view drastically your -- you that the if So change it soon. observations making then And this just data us today, thoughts doesn't the sure help this you're great. didn't real-world saw Or would they're seems mitigate maybe understand trial us you or trial restarting in like change why patient your treated how -- getting understand population on maybe have? be that's safety of FARAPULSE and today this just overall help

Ken Stein

Travis. Sure, Yes.

Let begin, me at least population. again patient the

newly guidelines to And with they this fail persistent antiarrhythmic to a is enrollment for drug actually we've clinical therapy so if drug atrial get antiarrhythmic the fibrillation moment, standard of an -- first. paused And for even only then ongoing patients though Obviously, because for referred trial. ablation care therapy. of trial be today, say diagnosed would

the observations. really everyone, can't that So into life-threatening. I to just on Again, saw certainly nothing detail any reassure was we get

just very is profile, And our that's see ongoing we said, over with system from on highly all I the again, that's think have clinical got efficacy published been treated extensive it, which efficiency of trials. are as confident the in in XX,XXX again, data overall both data And experience, we overall as based commercial FARAPULSE with and as been experience system. this we've overall and clinical we of XXX,XXX safety that patients patients that approximately now well globally, extensive

Operator

Antalffy from with question next UBS. The comes Danielle

Danielle Antalffy

comments growth. I'm just amazing of Dan, the you But say, appreciate to not I this ask, to quarter. wanted speechless. be I here you we about a lot there's give XXXX. market on did on mean can next sales, a Congrats appreciate target bit the that little going you growing how think kind a be think noted you moving about But about specifically, market above market's year. as sales I can

little give color, a from we about you more maybe highlighting think sales even could XXXX. to just was hoping as if perspective So it's if I headwinds and look to ahead growth bit a tailwinds possible,

Michael Mahoney

my I'll start up and you clean can mess. Dan, then

of estimated excited, so over a XXXX, growing into obviously, many comp with 'XX the head XX% But And on as we obviously, XXXX. of comp XX% we're a XX%. going at about things have there's approximately good So we'll nice company.

Endo, question other non-FARAPULSE and double was and Neuromod strength U.S. of to want growing bit the ICTX for you and digits that strengthen PI earlier asked like and to we a Thank neurology more. the businesses commonly and

the and and for We add think number drive the full to the and there's And are there's And FARAPULSE of big open in at headlines just additional in a new to China mentioned as the current franchise. to U.S. of I both we look accounts Japan WATCHMAN. accounts growth launch lot penetration a but so -- XXXX, prior, as do volume obviously will launch FARAPULSE.

are the about concomitant those all for WATCHMAN, tailwinds heard You've so company. the for reimburse all nice

is volumes in we a relatively see a of slowdown bit procedure The strengthening consistent. see We a July, but in September. August,

we now. performance. will procedure And we And versus maintain so strong global see volumes they strong as are think

more There quite I some obviously, in know, guess, Dan, performed cardiology very have the we're comps. competition throw in agents, also, has out doing challenging that well, to be well. more we'll I some team, will don't one PFA, which have So we but competition the which Europe.

in about weeks. So out on find additional some reimbursement coming product momentum that add franchise. that to should next That the we'll

Daniel Brennan

process, give size if I year. there's just think no a it that of well. it's any And the you to different sense

operating year, into alive review quarter through QX we think go we annual XXXX call. next as We our early We'll here the that earnings and end we'll well plan of have that's what for and our fourth and the the know at let process quarter. you through

Operator

comes The Petrone Group. next question from with Anthony Mizuho

Anthony Petrone

And a congrats quarter here. strong on

XX be to question XXXX, that but year, the on press I indicates the think will it's go back it there, out next you to release go-to-market NAV FARAWAVE you the side. have mapping exclusive October OPL and the Catheter on

bundled And we'll closed So next with coming year. company coming a approach. offering are loop is in presumably, here the competitors other a words, have that with

enter with seems when approach So mappers. question it bundled be that to there 'XX, a we here maybe the with X PFA competitors is just out will

Congratulations on walk a bit. that just little maybe the dynamic again through So quarter.

Michael Mahoney

Ken, Yes. just and can this. you I'll finish comment again,

using our and with Rhythmia competitors using legacy FARAPULSE So with today. mapping today, X it they're system customers primary our also

out do be So use be competitive user with closed system, Opel continue the that experience streamlined still the FARAPULSE, a more system platform they and that think in will will OPL mapping not to FARAPULSE, differentiated. mapping with wants the such a physician specifically can. way with if We a to more meaningful and

and doing So to Opel the the versus what that shutting experience, system differentiated in the FARAPULSE confident and value FARAPULSE using quite out not we're economics of systems today. be we're the with they're we're integration overall cases. competitive But the user closing from

Ken Stein

ability said, right, to we Yes. our to we of is do i just got I going with a use in that use the in in use it. want people force to and really mapping different no to. use they it ways, Anthony, mean, case all, way we've and includes that world it the their it are a support to products. which predominant at build people want continue not again see And feel with And we is used what system. throughout a and FARAWAVE have to on to that use who use lot people of that navigation And navigation people Mike variety the or Europe what see mapping to through we

a going it compelling enough else think system. advantages use HDX original system there tied sensor we're to system, for OPL differentiated But going is that it continue without to got because to to it. the it. mapping right, to does out particular catheter magnetic sensor use people it's want FARAWAVE who want refreshed going FARAVIEW. with competitive We're are keep we people use NAV, got not for to a to what , us it's force mapping market which compared on get is to to with people into the FARAWAVE the the NAV the a have and NAV

Operator

The with next question ISI. Evercore Vijay Kumar comes from

Vijay Kumar

quarter generation nice And neoX strategy? maybe FDA? So the you here. U.S. to expect the mentioned referring here. about on expect What a TAVR on in I week's next valves? think neoX strategy you a that one to with you U.S. results your the you maybe talk Do launch have Mike, that Is in is for other the to successful file ACURATE Congrats the regulatory of or some

Michael Mahoney

Sure.

So be we've neoX before, on, talked will TCT the as on trial ACURATE about patient the what, X,XXX Wednesday?

Daniel Brennan

October XX.

Michael Mahoney

October XX.

be team post data. an that that actually for talk be Gerald day the broader clinical accurate to and with and that is presented. the an holding trial investor about cardiology to Bates important we'll see meeting plan data and portfolio will that the Lance So And milestone the

you have we've excellent As to continued in momentum Europe. know,

You saw the third quarter results.

And to which kudos team to Europe. implementing the continue just in started Prime, grow launch of next-generation We the the recently they ACURATE above neoX, market. on

Vijay Kumar

it Mike? does Sorry, with you successful mean And and what expect launch the FDA, file mean? to does

Michael Mahoney

like goals for Well, we a don't provide attainment successful launch, we've a never provided share just share, FARAPULSE.

the market, very but we in and to investor provide the call a X%, market U.S., at X%, to mature, -- want X the obviously more well I large TCT growing, don't we So very grow business. the It's quite at do we'll information know, there. continue

Operator

Matt The from next with Barclays. comes question Miksic

Matthew Miksic

the stable But move that 'XX, you for a is, color primary Maybe on had -- the all the if on And really you bit at how see congrats headwinds. model of the little some into of quarter, in that it's can I gross investments you that operating have leverage Dan the the margin talk the some you great one this making? the progressing a you're maybe about as a growth margin of where and in on some question -- just kind FX and how levering point. dynamics of drivers impressive being just quarter running. mentioned line in on gross maybe you

Daniel Brennan

pretty is Sure, Matt. simple. QX The story actually

were XX.X% that's slightly we and margin we what foreign So driven exchange QX, the really in quarter. by gross would below in have expected,

So be margin simple our we were story gross that consistently full year. year said for QX. We've we XX.X%. believe adjusted last Last year, below will

of testament adjusted the expansion margin expansion we've to kind know the XX we're not because that So you driving of hallmark consistently DNA the actually to in points of XX.X% P&L. basis what, drive okay operating through company that all said, of going continuing that's to of without the probably we're of hit margin XXXX, lines

ride okay have to to we So that's other margin, and horses contribute, because not there. going SG&A XXXX gross the

go 'XX I think contribute. could and the you into P&L As of beyond, all lines

mix, a that placements that part we will capital margin is but big -- I of FARAPULSE so margin, be that that. catheter, the that lot think of gross does how And that's happen? piece call of single-use have. a product today, nice the you A have

only It's this. launch. into X X still months we're launching mentioned, Mike the or As

still capital, a placing Japan launching of have And capital. lot China. of year, So a next we're we'll and lot

be that. still launching We'll effectively we'll there. doing be So

becomes story accretive the overall overall the accretive into think through and within work single-use as to Boston you 'XX FARAPULSE 'XX beyond, the kind margin is FARAPULSE I as catheter and is and swamps But Scientific. go of overall

obviously is WATCHMAN helpful.

today heard gross the lot the You line. WATCHMAN. for the commentary some there news margin be of for about tailwinds call could a great of on That's that the --

be so contributor think I the successful 'XX margin decade. the So a company margin the journey gross can to for for been margin, gross operating and last the beyond, that's takeaway is overall

Operator

question with TD Cowen. next Jennings Josh comes The from

Joshua Jennings

internal out make FARAPULSE chain called home quarter. that wanted check just a you -- out Mike, I expectations? time. no for Congratulations sure there's for want up to just or your staying the to and capacity team called box, franchise manufacturing on issues outperform ops on you to if the demand with keeping run I next that and year continues supply

for of wanted it's get diagnostic higher for you're overall Boston PVIs you market, well the ablation guys then are Scientific, is even kind know mapping But diagnostic of your the the catheter team's I and but this just NAV ablation building revenue how the sorry just to mapping and capital and that -- catheters, on segment. out positioned maybe Also on model FARAPULSE mapping there, portfolio. view to will segment whether your two-parter. follow review than mean up a be -- now our and the understanding that or mapping just and business I single-use catheter just just there's the catheter percentage to just

Sorry for multipart. the

Ken Stein

first the Josh, to take issue. get can we part I'll second then and the supply

So clarity... just for

Michael Mahoney

no just issue. supply There me jump Let is up.

about talk let's So that.

team. the to kudos So

has anticipate, team the even the the not We done despite Let do take console supply. our great catheter demand, first supply part. on the a high job and me

So we supply don't anticipate any shortages.

Ken Stein

in word. of that clarity. Yes, terms should not I use

indicated is It it device. for paroxysmal Catheter, fibrillation. single-use with atrial NAV PVI a FARAWAVE again, the is, So current patients for

is for said we As FARAWAVE with for catheters, to a want think emphasize I there's And on atrial that catheter our of at really the clinical FARAVIEW we for trial persistent advantages other use right? ADVANTAGE in the refractory market drug to navigation label expansion to mapping family here fibrillation. versus differentiated significant get are what clinical trial PFA systems is that patients currently some really the again,

as of put do where it to and ability shape when that's plan so to in lesions the And dynamic ablation also ability procedure. field changes to specifically to catheter an visualization you're tagging ability doing

Joshua Jennings

of to the my And get diagnostics you understanding, buildout, pipeline that. in portfolio guys high-density diagnostic wanted catheter just is terms a but better in do just the mapping catheter look have a on

Ken Stein

part be high-density our would to the catheter. ablation same catheters catheter, as refreshed Yes. mean, do do also right, the road, the Orion And capability the high-density have system. then and go a which we our is can additional which already mapping which about I PFA be OPL in of family, to both the have catheter, FARAFLEX right, Josh, FARAPULSE which we FARAPOINT includes used mapping catheter, and we've talked includes down on

Michael Mahoney

today, add They're There just are others. I'll pie, in on compete one. to we and move don't of just like on the ice elements we'll the catheters and -- procedure all that next that

it. extremely So we're of well doing portion the ablation in

time. quite mapping that play underscaled in today EP which to the but do in, over well there we're segments out shooting to OPL still that we've segment, expect the We in the in been mix don't we are procedure within fill portfolio

you relates and we're Japan based other expect on product one and make to approval or a China. launch to registries see Japan about obviously, getting question, team, for out just volume excited of in launch new We FARAPULSE, of wasn't accounts. on I'll China a what more do U.S. it's typically in the and terms approvals it but the comment China the be in bit in not slower and but the than cadence -- on

we also launch out launch recent we a China some do openings [ well ] seen aggressive strong and U.S. done And that you've China average company have those have shout quite franchise expect be seen, of that the in team. Despite very a We've at there more in faced in China but to grow Japan. we've tougher gone to many peers which just results. We the VBP continue despite don't in our when significant have anticipate headwinds the in the will have XXXX, essentially there impacted same that VBPs IVUS our headwinds to

Jonathan Monson

more Let's take one question.

Operator

with will come Matt Piper question That Sandler. from O'Brien

Matthew O'Brien

on the And to looking I'd focus the commentary. up this on now I'm much things GUARD positive prior going stock rather all here, but AVANT down at versus

higher say, that, be kind then if what can't I'm Stein, can And of is but is should any that you Dr. of? we So on you safety exactly there signal of comment not there aware patients. sure of patient really because difference, leads about maybe benefit drug-naive extra think requirements the be the anything terms population being this created, it's to to cause that in risk need

share can because just this the folks Just based I to pretty anything that think business. how nervous on are FARAPULSE important along those lines you is morning

Ken Stein

are treated. XXX,XXX We've and clinical Matt, safety, because got in over the data what and of the is details. extensive safety any extensive we've system. again, Yes, Again, can't is get got trials highly data into efficacy ongoing this I the and FARAPULSE an highly Again, trial, published and clinical are I efficiency of ongoing trial use the system. confident the the commercial can in confident say patients other we

Michael Mahoney

We expect this to launch soon. trial

Jonathan Monson

you appreciate Scientific. have any Relations if to reach weren't team. Boston hesitate Thanks, don't us to Investor to get please and we Ken. If able joining your question Thanks, to or interest We Mike, thanks, today. your for the everyone, in out follow-ups,

you Drew day. for pertinent a will everyone. the Have give disconnect, Before great details Thanks, replay. all the you

Operator

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

now disconnect. may You

Boston Scientific (BSX) 23 Oct 242024 Q3 Earnings call transcript