Core Insights - The biotech industry is characterized by high risks and potential rewards, where positive news can significantly impact share prices and company viability [1] Group 1: Boston Scientific - Boston Scientific Corp. specializes in medical devices for gastrointestinal and pulmonary conditions, with recent FDA safety alerts affecting its heart devices leading to a temporary dip in share price [2][3] - The company reported a 17% year-over-year (YOY) organic sales increase, with a notable 28% growth for its Watchman device, surpassing analyst expectations for both revenue and earnings [4][5] - Analysts are bullish on Boston Scientific, with 24 out of 26 rating it a Buy and a price target suggesting over 10% upside potential [5] Group 2: Arcutis Biotherapeutics - Arcutis Biotherapeutics focuses on dermatological treatments, with its product ZORYVE driving a remarkable 164% YOY growth in product sales for the latest quarter [6][7] - The FDA approved ZORYVE foam for additional uses, expanding its market reach, and the company anticipates further regulatory decisions later in the year [7][8] - Despite facing competition, Arcutis has a strong pipeline and is rated a Buy by six out of seven analysts, with a potential upside of 24% [8] Group 3: Tarsus Pharmaceuticals - Tarsus Pharmaceuticals specializes in eye care, reporting a net sales beat of nearly $103 million, driven by its Demodex treatment XDEMVY [10][11] - The company is conducting a promising Phase II study for its TP-04 treatment for ocular rosacea, contributing to a positive outlook among analysts [11] - Tarsus shares have increased about 4% year-to-date, with analysts indicating over 16% upside potential [11]

Core Insights - Hologic and Boston Scientific are prominent U.S. MedTech companies, with Hologic focusing on women's health and Boston Scientific on less-invasive medical devices [1][8] - Hologic's market cap is $14.94 billion, while Boston Scientific's is significantly larger at $155.90 billion [1] Hologic Overview - Hologic's fiscal 2025 third-quarter performance indicates recovery and growth, aided by a new leadership team and strategy in Breast Health [3] - The company is launching innovative products like Genius AI Detection PRO and the Envision mammography platform [3] - U.S. Molecular Diagnostics grew 7.3% year-over-year, driven by specific assay portfolios [4] - The Genius Digital Diagnostics System is gaining traction globally, addressing labor shortages in cervical cancer screening [5] - Hologic's strong balance sheet supports capital allocation strategies, including share repurchases and M&A activities [6] - The company has reduced anticipated tariff impacts for fiscal 2026, but still faces macroeconomic challenges [7] Boston Scientific Overview - Boston Scientific's Cardiovascular segment showed strong performance, with Electrophysiology sales increasing by 91% in Q2 2025 [8][9] - The company is focusing on strategic M&A and high-growth areas, acquiring SoniVie and Intera Oncology [10] - Emerging markets delivered 12.1% year-over-year operational sales growth despite geopolitical challenges [10] - The MedSurg segment, particularly Endoscopy, showed strength with notable growth in key products [11] - Urology sales grew 28% operationally, supported by acquisitions and product innovations [12] - Boston Scientific has cut its 2025 tariff impact forecast to approximately $100 million [13] Financial Performance and Valuation - Year-to-date, Hologic shares have decreased by 5.4%, while Boston Scientific shares have increased by 18.8% [16] - Hologic's forward price-to-sales ratio is 3.58, slightly above its median, while Boston Scientific's is 4.14, below its median [17] - Hologic's EPS for fiscal 2025 is estimated to grow by 3.7% to $4.23, while Boston Scientific's EPS is projected to improve by 18.7% to $2.98 [19][21] Conclusion - Boston Scientific shows strong momentum in its segments and favorable earnings projections, making it a more compelling investment opportunity compared to Hologic, which is also on a growth trajectory but faces economic headwinds [22]

Core Insights - Boston Scientific's second-quarter 2025 performance was significantly influenced by its international expansion, particularly in emerging markets, despite facing challenges from currency fluctuations and a tough macroeconomic environment [1][9]. Financial Performance - Year-to-date, Boston Scientific's shares have increased by 18.1%, outperforming the industry and S&P 500, which grew by 7.5% and 8.6% respectively [2]. - The company has a market capitalization of $155.90 billion and has consistently beaten earnings estimates over the past four quarters, with an average surprise of 8.11% [2]. Growth Drivers - The company is focusing on expanding its presence in emerging markets, which showed a robust revenue growth of 12.1% year-over-year in the second quarter of 2025 [3]. - In the EMEA region, sales grew by 1.8% operationally, while the Asia Pacific region saw a significant sales increase of 15.4%, driven by strong performance in China, Japan, Australia, and New Zealand [4]. - The MedSurg segment is a key growth area, with Urology sales increasing by 28% and Endoscopy business growing by 8% globally, supported by strong product performance [5][8]. Challenges - Boston Scientific is exposed to currency fluctuations, with 40% of its sales coming from international markets, leading to a 1.2% revenue headwind in Q2 2025 due to unfavorable foreign exchange rates [7][8]. - The company is also facing macroeconomic challenges, including geopolitical tensions and supply chain disruptions, which are expected to impact profitability and result in a tariff cost of approximately $100 million for the full year 2025 [9]. Future Outlook - The Zacks Consensus Estimate for 2025 earnings per share has increased by 2.1% to $2.91, with revenue estimates set at $19.49 billion, reflecting a 16.4% increase from the previous year [10].

Core Insights - Rising demand for precision and personalized medicine is driving the need for AI-enabled medical devices to provide individualized diagnostics and treatments [1] Group 1: AI Applications in Medical Devices - Generative AI and agentic AI are increasingly integrated into medical devices, enhancing clinical workflows and patient care by analyzing patient-specific data [3] - Generative AI is utilized for content creation and design optimization, while agentic AI enables autonomous decision-making in medical devices [4] Group 2: Company-Specific Insights Boston Scientific Corp. (BSX) - Boston Scientific is experiencing strong demand in its MedSurg and Cardiovascular lines, with significant traction for its WATCHMAN FLX and FLX Pro devices [6] - The company leverages AI in heart diagnostics, arrhythmia mapping, and coronary imaging, with an expected revenue growth rate of 18.3% and earnings growth rate of 18.7% for the current year [8][9] Johnson & Johnson (JNJ) - Johnson & Johnson's MedTech division focuses on AI technologies for surgical robotics and digital surgery analytics, with an expected revenue growth rate of 5.2% and earnings growth rate of 8.8% for the current year [12][10] - The company has developed an AI-enabled ecosystem called Ottava for robotic surgery and the Caresurgical/VELYS systems for procedure planning [11] GE HealthCare Technologies (GEHC) - GE HealthCare is witnessing strong market demand driven by rising procedure volumes and capital investments, with AI central to its digital strategy [14] - The company has launched AI-driven solutions like CleaRecon DL and Invenia Automated Breast Ultrasound Premium, with an expected revenue growth rate of 3.5% and earnings growth rate of 0.9% for the current year [16][15] Tempus AI Inc. (TEM) - Tempus AI focuses on advancing precision medicine through AI applications, providing solutions for personalized patient care, particularly in oncology and cardiology [18] - The company has an expected revenue growth rate of 81.1% and earnings growth rate of 55.7% for the current year [20]

The fund is sponsored by Blackrock. It has amassed assets over $4.34 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Medical Devices segment of the equity market. IHI seeks to match the performance of the Dow Jones U.S. Select Medical Equipment Index before fees and expenses. Designed to provide broad exposure to the Healthcare - Medical Devices segment of the equity market, the iShares U.S. Medical Devices ETF (IHI) is a passively managed exchange traded f ...

Core Insights - The article highlights the nomination of 25 medical devices for the Prix Galien USA, often referred to as the "Nobel Prize of Medicine," with a notable entry from China's Deyi Group for its integrated X/γ-ray radiotherapy platform [2][5][58] - It emphasizes the significance of innovation in medical technology, showcasing trends in the industry and the emergence of Chinese products on the global stage [58][59] Summary by Sections Nomination Overview - The Prix Galien USA announced 25 nominated medical devices, including the TaiChiPro from Deyi Group, which is the first Chinese medical device to be nominated [2][5] - Other notable entries include Abbott's Esprit BTK and AVEIR DR, which focus on innovative cardiovascular solutions [7][9] Trends in Medical Technology - The article identifies several key trends among the nominated products: 1. Cardiovascular innovations remain a primary focus, with products emphasizing minimally invasive techniques and enhanced safety [53] 2. Radiotherapy is entering an "intelligent control" era, with products like TaiChiPro and RefleXion SCINTIX showcasing advancements in treatment precision [54] 3. "Closed-loop control" systems are becoming standard in smart devices, enhancing treatment efficacy through real-time physiological feedback [55] 4. Rapid diagnostics and multi-modal imaging are trending towards distributed accessibility, with products like BIOFIRE SPOTFIRE leading the way [56] 5. Established companies and emerging startups are both making significant contributions, with a balance of systemic innovation and focused breakthroughs [57] Significance of Chinese Innovation - The nomination of TaiChiPro marks a pivotal moment for Chinese medical devices, representing a shift from following to leading in technological innovation [58] - This product exemplifies a structural innovation that integrates multiple treatment modalities, indicating a move towards system-level design in Chinese healthcare technology [58] Conclusion - The Prix Galien serves as a benchmark for evaluating transformative medical technologies, emphasizing that innovation should focus on improving treatment pathways rather than merely increasing costs [59] - The article concludes that for Chinese medical device companies, being nominated is just the beginning of a journey towards global recognition and participation in shaping international standards [59]

Accessible version Medical Technology Medtech valuations – a new era Industry Overview Unprecedented times in medtech valuation BSX PE roughly at its WAMGR when it likely beats it There is a high correlation with medtech PEs and revenue growth rate (Exhibit 1). BSX trading at 31x 2026 EPS is correlated to 10.5% revenue growth (closer to 10% assuming EPS upside). BSX's WAMGR is around 10% today and BSX tends to outperform its WAMGR. A 11-12% growth is correlated to a 33-36x PE multiple. If investors begin to ...

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Boston Scientific (BSX) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being highly desirable as it indicates strong future prospects [3] - Boston Scientific has a historical EPS growth rate of 21.3%, with projected EPS growth of 18.6% this year, significantly surpassing the industry average of 10.2% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [5] - Boston Scientific's year-over-year cash flow growth is 26.5%, well above the industry average of 1.2% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 9.9%, compared to the industry average of 8% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Boston Scientific has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 2.1% over the past month [8] Group 5: Overall Assessment - Boston Scientific holds a Zacks Rank of 2 and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [10]

Core Insights - The concept of a "forever company" suggests that certain stocks are considered long-term investments that investors should hold indefinitely [1] Group 1 - The author emphasizes the importance of investment opportunities for retail value investors who are cautious about losing money but may still take calculated risks [1] - The author has a diverse background, including teaching business and politics, consulting for startups, and managing an investment firm, which adds credibility to the insights shared [1] - The author has founded a successful business with significant real estate holdings, indicating practical experience in managing investments [1]

Core Viewpoint - Boston Scientific (BSX) has been a focus of investor interest, with its stock performance being influenced by various fundamental factors and earnings estimates revisions [1][2]. Earnings Estimates Revisions - For the current quarter, Boston Scientific is expected to report earnings of $0.71 per share, reflecting a year-over-year increase of +12.7% [5]. - The Zacks Consensus Estimate for the current fiscal year is $2.98, indicating a year-over-year change of +18.7% [5]. - For the next fiscal year, the consensus earnings estimate is $3.37, representing a +13.3% change from the previous year [6]. - The recent changes in earnings estimates have led to a Zacks Rank of 2 (Buy) for Boston Scientific, suggesting potential for price appreciation [7]. Revenue Growth Projections - The consensus sales estimate for the current quarter is $4.95 billion, indicating a year-over-year increase of +17.7% [11]. - For the current fiscal year, the revenue estimate is $19.8 billion, reflecting an +18.3% change, while the next fiscal year is projected at $21.99 billion, indicating an +11% change [11]. Recent Performance and Surprise History - Boston Scientific reported revenues of $5.06 billion in the last quarter, a year-over-year increase of +22.8%, and an EPS of $0.75, up from $0.62 a year ago [12]. - The company has consistently beaten consensus EPS and revenue estimates over the past four quarters [13]. Valuation Metrics - Boston Scientific has a Zacks Value Style Score of D, indicating it is trading at a premium compared to its peers [17]. - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued or undervalued [15][16]. Conclusion - The combination of strong earnings growth, positive revenue projections, and a favorable Zacks Rank suggests that Boston Scientific may outperform the broader market in the near term [18].