Boston Scientific Corporation (BSX) UBS Global Healthcare Conference (Transcript)

Boston Scientific Corporation Conference Call Summary Company Overview - Company: Boston Scientific Corporation (NYSE: BSX) - Event: UBS Global Healthcare Conference - Date: November 12, 2024 Key Points Financial Performance - Q3 2024 Organic Revenue Growth: 18.2% [3] - Adjusted Operating Margin: 27.2% [3] - Earnings Per Share (EPS) Growth: 27% in Q3 2024 [3] - 2024 Guidance: Raised to 15% organic revenue growth, with an expected operating margin expansion of 70 basis points to approximately 27% [3] - 2024 Adjusted EPS Growth Guidance: 20% to 21% [3] Growth Catalysts - Key Growth Drivers: WATCHMAN and Electrophysiology (EP) business, particularly FARAPULSE, which is transforming the atrial fibrillation (AF) ablation market [4] - Market Position: Company aims to be the highest-performing large-cap med tech company with broad-based growth across all business segments [4] FARAPULSE and AF Ablation Market - Adoption Rate: Accelerated adoption of electroporation technology with FARAPULSE, exceeding initial expectations [7] - Market Share: Tracking ahead of the projected 40% to 60% of ablation procedures being performed with PFA by 2026 [6] - User Experience: Positive feedback on ease of use and safety, leading to rapid rebooking of patients [8] - Competitive Landscape: Company maintains a first-mover advantage in the PFA market, with ongoing innovation to fend off competition [10][12] WATCHMAN Device - Clinical Trial: OPTION trial comparing WATCHMAN to oral anticoagulants for stroke prevention in post-AFib ablation patients [24] - Market Potential: Positive trial results could expand the indicated patient population by 1 million to 2 million, increasing the market size from $1.7 billion to$6 billion by 2030 [25] - Indication Expansion: Anticipated submission for indication expansion in the second half of 2025, with potential to increase the indicated patient pool from 4 million to 18 million by 2030 [30] International Market Opportunities - Expansion into Asia: Launching in China and Japan in 2025, with both markets representing a multibillion-dollar opportunity [38] - Market Dynamics: Each market has unique characteristics, and the company is well-positioned to capture share due to strong supply chain and manufacturing capabilities [41] Innovation and Product Development - New Products: Introduction of FARAWAVE mapping system and continued innovation in PFA technology [23][54] - Future Trials: Plans for additional trials like ADVANTAGE and AVANT GUARD to expand indications and enhance product offerings [54][48] Competitive Moat - Market Share: Company holds over 90% market share for WATCHMAN, with ongoing innovation to maintain leadership [31][32] - Clinical Evidence: Strong focus on generating clinical evidence to support product efficacy and safety [33] Capacity and Treatment Trends - Capacity Management: Hospitals are adapting by increasing the number of electrophysiologists and cath labs to meet growing demand for AF ablation procedures [51] - Ambulatory Surgery Centers: Potential future growth in treating patients in outpatient settings [52] Summary Boston Scientific is experiencing robust growth driven by its innovative products in the electrophysiology and left atrial appendage closure markets. The company is well-positioned for future expansion, particularly in international markets, and is focused on maintaining its competitive edge through continuous innovation and clinical evidence generation.