Core Insights - Boston Scientific's Electrophysiology (EP) sales increased by 63% in Q3 2025, driven by strong performance from the FARAPULSE system and growing adoption of the OPAL HDx mapping system [1][9] - The FARAPULSE system received FDA approval for expanded labeling, allowing its use for pulmonary vein and posterior wall ablation in patients with persistent atrial fibrillation [2][9] - Boston Scientific aims for 50% global PFA penetration by the end of 2025, increasing to approximately 80% by 2028 [2][9] Sales Performance - The company's EP sales growth was supported by double-digit growth in the United States and strong international performance, particularly in Japan and China [1] - Boston Scientific's stock has risen by 10.9% year-to-date, outperforming the industry average growth of 0.6% [7] Market Strategy - Boston Scientific is investing to exceed the estimated 15% market growth through 2028 by enhancing its innovative solutions across both AF and non-AF segments [3] - The company plans to launch the FARAPOINT PFA catheter by late 2025 to improve access to new technologies for complex and redo patients [3] Clinical Trials - Enrollment in the OPTIMIZE trial will begin, focusing on the integration of OPAL in the Cortex AI algorithm to better visualize and target arrhythmia sources [4] Peer Comparisons - Abbott's EP sales grew by 15.6% year-over-year in Q3 2025, with successful launches of new products contributing to growth [5] - Medtronic's cardiovascular portfolio saw a 7% sales increase, with cardiac ablation solutions growing nearly 50% due to strong uptake of its PFA system [6] Valuation Metrics - Boston Scientific is trading at a forward five-year Price-to-Earnings (P/E) ratio of 29.16X, compared to the industry average of 19.95X [10]

Core Insights - The eighth China International Import Expo (CIIE) showcased several innovative medical devices and healthcare products, attracting significant attention from global trade delegations [1][2] Group 1: Medical Devices - Boston Scientific presented the ENROUTE Transcarotid Artery Revascularization (TCAR) device, the first and only approved device for TCAR procedures, aimed at reducing intraoperative risks associated with carotid artery stenosis [1] - Another product from Boston Scientific, the FARAWAVE NAV catheter, utilizes non-thermal electric fields for cardiac tissue ablation and has treated approximately 500,000 patients globally [1] - Medtronic introduced the Inceptiv closed-loop rechargeable spinal nerve stimulation system, designed to improve the quality of life for patients with chronic pain through weak electrical stimulation [4] - BD Medical showcased the M.R.I™ 4F Slim Implantable Port, the thinnest catheter in its category, designed for the Chinese population, which significantly reduces thrombosis rates by 40% [4] - The Venclose™ catheter, designed for treating lower limb varicose veins, features a flexible setup that minimizes patient trauma [5] Group 2: Innovative Treatments - Fosun Pharma presented the Exablate Neuro system, a high-intensity focused ultrasound (HIFU) device combined with MRI for treating drug-resistant essential tremors and Parkinson's disease [6] - Eli Lilly introduced innovative drugs targeting aging and obesity, including donanemab for Alzheimer's disease, which has shown to delay disease progression by approximately 30% in clinical trials [6]

Core Insights - Baron Health Care Fund reported a 5.39% increase in Q3 2025, slightly outperforming the Russell 3000 Health Care Index which gained 5.05% [1] - The fund's performance was impacted by stock selection and negative effects from active sub-industry allocations and cash holdings during a rising market [1] Company Performance - Boston Scientific Corporation (NYSE:BSX) achieved a consolidated revenue of $5.065 billion in Q3 2025, reflecting a 20.3% growth compared to Q3 2024 [4] - The stock of Boston Scientific Corporation rose 15.26% over the last 52 weeks, with a one-month return of 2.81% [2][4] - As of November 3, 2025, Boston Scientific's stock closed at $98.59, with a market capitalization of $146.154 billion [2] Competitive Landscape - Boston Scientific faces increasing competition in the pulsed field ablation (PFA) market from Medtronic, Johnson & Johnson, and Abbott, which have launched competing products [3] - Despite the competitive pressures, Boston Scientific is viewed as a strong compounder with a double-digit earnings per share growth profile and ongoing operating margin expansion [3]

Financial Performance - Boston Scientific's net sales for Q3 2025 reached $5.065 billion, a 20.3% increase from $4.209 billion in Q3 2024, driven by strong commercial execution and acquisitions [146]. - The operational net sales growth for the first nine months of 2025 was 21.0%, with organic net sales growth of 16.9% and a positive impact of 30 basis points from foreign currency fluctuations [149]. - Adjusted net income for Q3 2025 was $1.124 billion, or $0.75 per diluted share, compared to $937 million, or $0.63 per diluted share in Q3 2024 [146]. - For the first nine months of 2025, reported net income was $2.226 billion, or $1.49 per diluted share, with adjusted net income of $3.372 billion, or $2.26 per diluted share [149]. - The company reported a net sales increase of $2.602 billion, or 21.4%, for the first nine months of 2025 compared to the same period in 2024 [149]. - Gross profit for Q3 2025 was $3.542 billion, with a gross profit margin of 69.9%, up from 68.8% in Q3 2024 [168]. Business Segments - The increase in net sales was particularly strong in the Electrophysiology business unit, led by the Farapulse™ Pulsed Field Ablation System, and in the Watchman business unit due to the adoption of concomitant procedures [146]. - Endoscopy net sales were $747 million in Q3 2025, up 10.1% from $678 million in Q3 2024, contributing 15% to consolidated net sales [155]. - Urology net sales increased by $150 million, or 28.1%, to $682 million in Q3 2025, representing 13% of consolidated net sales [157]. - Cardiology products generated $2.641 billion in net sales during Q3 2025, a 24.0% increase from $2.129 billion in Q3 2024, accounting for 52% of consolidated net sales [161]. - Peripheral Interventions net sales grew by $101 million, or 16.7%, to $702 million in Q3 2025, representing 14% of consolidated net sales [163]. - Emerging Markets contributed 15% to consolidated net sales in Q3 2025, with a reported growth of 11.8% compared to the prior year [166]. Expenses and Charges - Selling, general and administrative (SG&A) expenses increased by $179 million, or 11%, in Q3 2025, while as a percentage of net sales, they decreased by 270 basis points [170]. - Research and development (R&D) expenses rose by $107 million, or 26%, in Q3 2025, accounting for 10.1% of net sales [171]. - Reported net income for Q3 2025 included certain charges totaling $369 million, while Q3 2024 included charges of $469 million [146]. - Amortization expense increased by $20 million, or 10%, in Q3 2025 compared to the prior year, and by $38 million, or 6%, in the first nine months of 2025 [173]. - The company recorded restructuring-related net charges of $45 million in Q3 2025, compared to $44 million in Q3 2024, and $161 million in the first nine months of 2025, up from $136 million in the same period of 2024 [180]. Cash Flow and Liquidity - Cash provided by operating activities increased by $1.191 billion to $3.170 billion in the first nine months of 2025, driven by higher sales and operating income [196]. - The company had $1.275 billion in unrestricted cash and cash equivalents as of September 30, 2025, including $382 million in money market funds and time deposits [192]. - Cash used for investing activities in the first nine months of 2025 included net cash payments of $1.504 billion for acquisitions, primarily related to Bolt Medical, Inc. and others, and $525 million for property, plant, and equipment [197]. - Cash provided by financing activities in the first nine months of 2025 included proceeds from the registered public offering of €1.500 billion in euro-denominated senior notes, resulting in cash proceeds of $1.558 billion [198]. - The company has no outstanding amounts under its $2.750 billion revolving credit facility as of September 30, 2025, providing additional liquidity [193]. Acquisitions and Investments - The company announced an agreement to acquire 100% of Nalu Medical, Inc. for an upfront cash payment of approximately $533 million, expected to close in the first half of 2026 [204]. - The company plans to fund the acquisition of Nalu Medical with cash on hand, integrating it into its Neuromodulation division [204]. - The company completed several acquisitions, including Silk Road Medical and Axonics, contributing to operational net sales growth [146]. Market Risks and Economic Factors - The company anticipates ongoing economic challenges due to inflation, tariffs, and geopolitical factors affecting operations and results [167]. - The company’s earnings and cash flows are exposed to market risk from changes in currency exchange rates and interest rates [227]. - The company addresses market risks through a risk management program that includes the use of derivative financial instruments [227]. Tax and Regulatory Compliance - The reported tax rate for Q3 2025 was 19.5%, down from 30.0% in Q3 2024, with the rate from continuing operations at 18.1% for both Q3 2025 and 2024 [184]. - The company expects an immaterial impact from the One Big Beautiful Bill Act (OBBBA) on its overall effective tax rate and financial condition in 2025 [187]. - The company faces risks associated with regulatory compliance and quality systems in the U.S. and EU [223]. Debt and Financial Management - As of September 30, 2025, the company maintained a leverage ratio of 2.02 times, well below the maximum permitted leverage ratio of 4.75 times [201]. - As of September 30, 2025, $11.326 billion in aggregate principal amount of the company's outstanding debt obligations was at fixed interest rates, representing approximately 100.0 percent of total debt [229]. - The company has no interest rate derivative instruments outstanding as of September 30, 2025 [229]. - The company’s ability to generate sufficient cash flow to fund operations and strategic investments is critical for maintaining investment grade ratings [226]. - The company is dependent on acquisitions and alliances to introduce new products and technologies [226].

Industry Overview - The global population is aging rapidly, with the number of individuals aged 60 and above surpassing those under five for the first time in 2020, leading to significant implications for healthcare systems and investors [2] - By 2050, nearly 22% of the global population will be over 60, with a significant concentration in low- and middle-income countries [2] - The geriatric care services industry is currently valued at approximately $1.21 trillion and is projected to grow to around $2.12 trillion by 2034, reflecting a compound annual growth rate (CAGR) of 6.4% [3] Market Dynamics - Evolving healthcare utilization patterns due to aging are creating growth opportunities in senior living communities, skilled nursing facilities, assisted living, and post-acute care providers [4] - The Centers for Medicare & Medicaid Services (CMS) has advanced the Program of All-Inclusive Care for the Elderly (PACE), aimed at providing comprehensive care for seniors [4] Key Players - Major healthcare companies like Boston Scientific, AbbVie, Amgen, and Edwards Lifesciences are actively expanding their presence in the senior and aging demographics [5] - The Ensign Group is expanding its skilled nursing and rehabilitative services, supported by a decentralized management strategy [7] - Healthcare real estate investment trusts (REITs) such as Omega Healthcare Investors and CareTrust REIT are focusing on skilled nursing and senior housing properties [7] Investment Perspective - The senior-care services sector is resilient during economic downturns, providing stable cash flows and making it attractive for long-term investors seeking defensive growth [8] Company Highlights - **Boston Scientific**: Focuses on medical devices for the elderly, including the WATCHMAN device for stroke risk reduction and the SYNERGY bioabsorbable stent system [9][10] - **AbbVie**: Expanding its focus on the aging demographic through strategic partnerships, including the acquisition of Aliada Therapeutics for Alzheimer's treatment [11][12][14] - **Amgen**: Targeting the aging population with innovations in biopharma, including obesity treatments and bone health therapies [15][16] - **Edwards Lifesciences**: Advancing care for aortic stenosis in elderly patients, with significant sales growth in structural-heart solutions [17][18][19]

Core Insights - Boston Scientific Corp. (NYSE:BSX) is recognized as a strong investment opportunity by Citadel LLC, with a reiterated price target of $115 and a Buy rating from TD Cowen analyst Josh Jennings following the company's robust Q3 2025 results [1][2]. Financial Performance - The company achieved a notable 15.3% organic growth in Q3 2025, surpassing its own guidance, primarily driven by strong performance in the Electrophysiology and Watchman businesses within the Cardiology segment [2]. - This organic growth contributed to stronger sales and earnings per share (EPS), allowing the company to exceed market expectations [2]. Future Outlook - Boston Scientific has raised its guidance for growth and profitability for the third time this year, projecting organic sales growth of approximately 20% on a reported basis and 15.5% on an organic basis for 2025, an increase from the previous guidance of 18%-19% and 14%-15% respectively [3]. - The company also maintains a positive outlook on margins, reinforcing a bullish perspective on its future performance [3]. Company Overview - Boston Scientific is a global medical technology company that develops, manufactures, and markets a diverse range of medical devices aimed at diagnosing and treating complex cardiovascular, respiratory, oncological, neurological, and urological diseases and conditions [4].

Core Insights - Boston Scientific Corporation (NYSE:BSX) is identified as a strong investment opportunity with a Buy rating and a price target of $132 as of October 23, 2023 [1][2] Financial Performance - The company reported fiscal third quarter 2025 results on October 22, exceeding EPS and revenue estimates by $0.04 and $90.87 million, respectively [2] - The EPS of $0.75 surpassed the firm's estimate of $0.70, attributed to significant improvements in gross margins [2] Growth Projections - Boston Scientific raised its full-year guidance, projecting a 20% growth and an adjusted EPS in the range of $3.02 to $3.04 [3] - Key growth drivers include the Watchman and Farapulse products, ongoing investments in growth, and anticipated label expansions of existing products [3] Company Overview - Boston Scientific develops and markets medical devices across various interventional specialties, addressing conditions in gastrointestinal, urological, neurological, and cardiovascular areas through minimally invasive technologies [4]

Core Insights - Intuitive Surgical and Boston Scientific reported strong third-quarter results, highlighting their distinct growth strategies in the medtech sector [1][2] Financial Performance - Intuitive Surgical achieved third-quarter revenues of approximately $2.5 billion, reflecting a nearly 20% year-over-year increase, driven primarily by a 19% rise in da Vinci procedures and a 52% surge in Ion lung biopsy procedures [3][7] - Boston Scientific reported over $5 billion in revenues for the third quarter, marking around 15% organic growth, with an adjusted gross margin improvement to about 71% due to high-growth categories like electrophysiology [4][8] Growth Strategies - Intuitive Surgical focuses on deepening its surgical robotics franchise, with the da Vinci 5 system accounting for over half of its system placements, and expanding its Ion and SP platforms [10][16] - Boston Scientific adopts a diversified approach, leveraging multiple franchises such as WATCHMAN and FARAPULSE, and pursuing an active M&A strategy to enhance its product pipeline and market presence [12][17] Market Position and Valuation - Both companies hold a Zacks Rank 2 (Buy), with Boston Scientific viewed as more attractively valued compared to the industry, while Intuitive Surgical's valuation has declined but remains above the industry average [7][23][30] - Year-to-date, Intuitive Surgical shares have risen 4.5%, while Boston Scientific shares have gained 13%, reflecting the latter's stronger performance due to its diversified business model [18] Future Prospects - Intuitive Surgical's future growth will depend on the global adoption of the da Vinci 5 and the effectiveness of its new features, alongside its reliance on recurring revenues from procedures [19] - Boston Scientific's prospects hinge on its ability to scale multiple growth engines, particularly in electrophysiology and the WATCHMAN-ablation procedures, while managing the complexities of numerous product launches [20][22]

Performance Overview - Baron Health Care Fund increased 5.39% in Q3 2025, outperforming the Russell 3000 Health Care Index's 5.05% but underperforming the Russell 3000 Index's 8.18% [2][3] - Since inception on April 30, 2018, the Fund has achieved an annualized return of 9.30%, compared to 8.68% for the Benchmark and 14.48% for the Index [2][4] Key Contributors - Strong stock selection in biotechnology, particularly from argenx SE and Insmed Incorporated, contributed significantly to the Fund's performance [5] - Argenx's Vyvgart sales exceeded expectations, while Insmed's Brinsupri received U.S. approval, representing a $5 billion-plus opportunity [5][16] - Investments in health care services, particularly RadNet, Inc. and Heartflow, Inc., also added value, with RadNet's shares rising due to strong quarterly results and guidance [6][7][17] Key Detractors - Poor stock selection in health care equipment, particularly from Masimo Corporation and Boston Scientific Corporation, negatively impacted performance [8][9] - Eli Lilly's stock fell due to disappointing Phase 3 trial results for orforglipron, alongside broader regulatory uncertainties affecting the pharmaceutical sector [12][21] - The Fund's underweight position in Johnson & Johnson, which saw a 22.3% increase, also detracted from relative performance [12] Portfolio Structure - The Fund held 46 stocks, with a significant overweight in biotechnology (31.8%) and health care equipment (24.0%), while being underweight in pharmaceuticals (15.2%) [24][28] - The top 10 holdings represented 47.8% of net assets, with Eli Lilly and argenx being the largest positions [26] Recent Activity - The Fund added 16 new positions and exited five, maintaining a focus on attractive valuations in the health care sector [29] - Notable purchases included AbbVie Inc., UnitedHealth Group, and Roivant Sciences, while positions in argenx and Eli Lilly were reduced to manage risk [30][31][37] Market Outlook - The health care sector is expected to offer attractive investment opportunities driven by demographic trends, chronic disease prevalence, and technological advancements [14][40] - Recent agreements, such as Pfizer's MFN pricing deal, are seen as positive for the pharmaceutical sector, with limited financial impact anticipated [38]

Core Viewpoint - Boston Scientific (BSX) shares have increased by 3% recently, closing at $101.11, with analysts suggesting a potential upside of 25.6% based on a mean price target of $127 [1] Price Targets and Analyst Consensus - The average price target consists of 31 estimates, ranging from a low of $113.00 to a high of $140.00, with a standard deviation of $6.38, indicating a relatively high agreement among analysts [2] - The lowest estimate suggests an 11.8% increase, while the highest indicates a 38.5% upside [2] - A low standard deviation signifies strong consensus among analysts regarding BSX's price movement [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about BSX's earnings prospects, as evidenced by a positive trend in earnings estimate revisions [11] - Over the past 30 days, the Zacks Consensus Estimate for the current year has risen by 2%, with 10 estimates moving higher and no negative revisions [12] - BSX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Implications of Price Targets - While the consensus price target may not be a reliable predictor of BSX's potential gains, the direction indicated by these targets appears to be a useful guide for further research [14]