Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Boston Scientific Corp (BSX, Financial) reported a 19% growth in operational sales and an 18% increase in organic sales for Q3 2024, exceeding their guidance range.
- The company's adjusted EPS grew by 27% to $0.63, surpassing the high end of their guidance range.
- Strong performance in the Electrophysiology segment with sales growing 177%, driven by the success of the FARO Pulse system.
- The company is expanding its product portfolio with the anticipated acquisition of Exonics and the recent acquisition of Silk Road Medical.
- Boston Scientific Corp (BSX) is guiding for a strong Q4 with expected organic growth of 14% to 16% and has raised its full-year guidance to approximately 15%.
Negative Points
- The company's gross margin was slightly lower than anticipated due to foreign exchange impacts.
- There are concerns about the Avant-Garde trial, which was temporarily paused due to unanticipated observations, although the company plans to resume it soon.
- The Cardiac Rhythm Management segment showed only a 2% growth, with strong international growth offset by below-market growth in the US.
- Despite strong overall performance, there is increased competition expected in the PFA market, which could impact future growth.
- The company faces ongoing challenges with VBP implementations in China, impacting certain product lines like the Ibis franchise.
Q & A Highlights
Q: Can you discuss the potential impact of the OPTION trial and the new reimbursement for concomitant WATCHMAN and ablation procedures?
A: The concomitant reimbursement is seen as a positive development for both WATCHMAN and the broader market. It offers economic benefits for hospitals and safety for patients. The OPTION trial, if positive, could further enhance the adoption of WATCHMAN, especially with the upcoming CHAMPION trial results expected in early 2026. (Respondent: Unidentified_1)
Q: What are your thoughts on the rapid adoption of FARO Pulse and its expected market share by 2026?
A: The adoption of FARO Pulse has exceeded expectations, with physicians quickly transitioning from traditional RF and cryo methods. We now anticipate that PFA will likely exceed the previously communicated range of 40% to 60% of global AF ablations by 2026, driven by its clinical benefits and procedural efficiencies. (Respondent: Unidentified_2)
Q: Can you provide more details on the avant-garde trial pause and the competitive landscape for PFA?
A: The avant-garde trial was paused due to unanticipated observations in a new patient population, but we intend to resume enrollment soon. We remain confident in the safety and efficacy of FARO Pulse, which has been used in over 125,000 patients. The competitive landscape will see new entrants, but the unique clinical experience and extensive data supporting FARO Pulse should maintain its leadership. (Respondent: Unidentified_3)
Q: How are you managing resource allocation across your various franchises, given the success of PFA and WATCHMAN?
A: We operate a decentralized business model, allowing each division to focus on its specific market. While we invest significantly in PFA and WATCHMAN, we continue to support and grow our other franchises like Peripheral Interventions and Urology, ensuring balanced growth across the company. (Respondent: Unidentified_5)
Q: What is your strategy for the launch of the accurate prime valve in the U.S., and what are your expectations?
A: We are awaiting the presentation of the 1,500 patient trial data at TCT, which will inform our regulatory strategy. We have seen strong momentum in Europe with the accurate prime valve and expect to leverage this success in the U.S. market. (Respondent: Unidentified_9)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
