Safe Harbor for Forward-Looking Statements and Use of Document Safe Harbor for forward-looking statements: This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "may," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions ...

Core Viewpoint - Boston Scientific raised its annual profit forecast following a strong performance in the third quarter, driven by high demand for its heart devices [1] Company Summary - Boston Scientific exceeded third-quarter profit estimates, indicating robust market demand for its medical devices, particularly in the cardiovascular segment [1]

Core Viewpoint - The article discusses the concept of the "Death Cross" as a bearish signal in stock trading, indicating a potential trend shift and the need for investors to be cautious about their positions in certain stocks. Group 1: Death Cross Overview - The Death Cross occurs when a stock's 50-day moving average falls below its 200-day moving average, signaling weakening short-term momentum and a possible trend shift [2][3] - This indicator is recognized by traders across various timelines and investment goals, serving as a signal to take profits or enter short positions [3] - Historical data shows that Death Crosses on major indices like the S&P 500 have preceded long-term bear markets in 2000, 2007, and 2022 [3] Group 2: Company Analysis - Boston Scientific - Boston Scientific has a current stock price of $99.88, with a P/E ratio of 59.45 and a price target of $121.61 [6] - The company reported a 22% year-over-year sales growth in Q2 2025, but the stock has declined 3% over the last three months, indicating market indifference to its performance [7] - The stock has formed a Death Cross, breaking through key support levels, and faces fundamental challenges due to its high valuation, trading at nearly 60x earnings [9] Group 3: Company Analysis - Darden Restaurants - Darden Restaurants, with a stock price of $187.67 and a P/E ratio of 20.11, operates popular chains like Olive Garden and Longhorn Steakhouse [10] - The company is experiencing pressure from rising labor and input costs, which is affecting its competitive pricing in the full-service casual dining segment [11] - DRI shares have broken through the 50-day SMA support level, indicating a loss of upward momentum, and may continue to struggle unless the restaurant industry improves [13] Group 4: Company Analysis - Stryker - Stryker's stock is priced at $379.96, with a P/E ratio of 50.33 and a price target of $431.76 [14] - Despite consistent earnings beats, the stock has only increased 3% in the last 12 months due to reliance on elective procedures and exposure to macroeconomic trends [15] - A Death Cross is forming for Stryker as it approaches the 200-day SMA, suggesting potential further downside if the price is rejected at this level [17]

Core Insights - The medical device company reported increased sales in the third quarter and has raised its full-year earnings guidance due to ongoing growth in its cardiovascular segment [1] Group 1 - The company experienced higher third-quarter sales [1] - The company raised its full-year earnings guidance [1] - Growth in the cardiovascular segment contributed to the positive performance [1]

Financial Performance - Boston Scientific reported net sales of $5.065 billion for Q3 2025, a 20.3% increase on a reported basis compared to the prior year[2]. - GAAP net income attributable to common stockholders was $755 million, or $0.51 per share, up from $469 million, or $0.32 per share, a year ago[2]. - Adjusted EPS for the period was $0.75, compared to $0.63 in the prior year[2]. - Net sales for Q3 2025 reached $5,065 million, a 20.4% increase from $4,209 million in Q3 2024[19]. - Gross profit for the nine months ended September 30, 2025, was $10,175 million, up 21.3% from $8,395 million in the same period of 2024[19]. - Operating income for Q3 2025 was $1,048 million, representing a 43.0% increase compared to $733 million in Q3 2024[19]. - Net income attributable to Boston Scientific common stockholders for Q3 2025 was $755 million, a 60.9% increase from $469 million in Q3 2024[19]. - Basic net income per share for Q3 2025 was $0.51, compared to $0.32 in Q3 2024, reflecting a 59.4% increase[19]. - The company reported a net income of $2,222 million for the nine months ended September 30, 2025, a 73.0% increase from $1,284 million in the same period of 2024[23]. - Adjusted net income for Q3 2025 was $1,303 million, compared to $1,082 million in Q3 2024, indicating a 20.4% increase[21]. Sales Growth - The Cardiovascular segment saw a reported sales growth of 22.4%, while MedSurg grew by 16.4%[2]. - U.S. sales increased by 27.0% to $3.294 billion, while EMEA sales grew by 2.6%[6]. - Full year 2025 net sales growth is estimated at approximately 20% on a reported basis and 15.5% on an organic basis[8]. - For Q4 2025, the company estimates net sales growth in the range of 14.5% to 16.5% on a reported basis[9]. - Q4 2025 estimated net sales growth is projected between 14.5% and 16.5%, with a full year estimate of approximately 20.0%[25]. Research and Development - Research and development expenses for Q3 2025 were $514 million, up 26.3% from $407 million in Q3 2024[19]. - The company received PMDA approval in Japan for expanded labeling of the FARAPULSE™ Pulsed Field Ablation System[5]. - Boston Scientific commenced enrollment in the AGENT DCB STANCE trial to assess the AGENT™ Drug-Coated Balloon[5]. - The company completed an asset acquisition with Elutia, Inc. for the EluPro™ BioEnvelope and CanGaroo® Envelope[5]. Operational Insights - Total operating expenses for the nine months ended September 30, 2025, were $7,387 million, a 14.2% increase from $6,467 million in the same period of 2024[19]. - The impact of foreign currency fluctuations is expected to reduce Q4 2025 net sales growth by 2.0% and full year impact by around 1.0%[25]. - Operational growth for Q4 2025 is estimated at 12.5% to 14.5%, with a full year estimate of about 19.0%[25]. - Organic growth for Q4 2025 is projected between 11.0% and 13.0%, with a full year estimate of approximately 15.5%[25]. Earnings Projections - Q4 2025 GAAP earnings per share (EPS) is estimated to be between $0.48 and $0.52, while full year EPS is projected between $1.97 and $2.01[26]. - Adjusted EPS for Q4 2025 is expected to range from $0.77 to $0.79, with full year adjusted EPS estimated between $3.02 and $3.04[26]. Non-GAAP Measures - The company utilizes non-GAAP financial measures to provide additional insights into operational performance, excluding certain charges and impacts from foreign currency fluctuations[27]. - Adjusted net income calculations exclude charges such as amortization expense and restructuring-related costs, providing a clearer view of operational performance[28]. - Management emphasizes the importance of non-GAAP measures for evaluating performance trends and making operational decisions[32]. - The company believes that presenting both GAAP and non-GAAP measures enhances transparency for investors regarding operational performance[33].

Core Insights - Boston Scientific Corporation reported net sales of $5.065 billion for Q3 2025, reflecting a growth of 20.3% on a reported basis, 19.4% operationally, and 15.3% organically compared to the previous year [1][6] - The company achieved a GAAP net income of $755 million, or $0.51 per share, up from $469 million, or $0.32 per share, in the prior year, with adjusted EPS of $0.75 compared to $0.63 a year ago [1][6] Financial Performance - The net sales growth by business segment included: - Endoscopy: 9.0% organic growth - Urology: 27.5% operational growth - Neuromodulation: 8.6% operational growth - MedSurg: 15.6% operational growth - Cardiology: 23.1% operational growth - Peripheral Interventions: 15.8% operational growth [4][6] - Regional net sales growth included: - U.S.: 27.0% reported growth - EMEA: 2.6% reported growth - APAC: 17.1% reported growth - LACA: 10.4% reported growth - Emerging Markets: 11.8% reported growth [4][6] Strategic Developments - The company announced the PMDA approval in Japan for expanded labeling of the FARAPULSE™ Pulsed Field Ablation System [6] - Enrollment commenced in the AGENT DCB STANCE trial to assess the AGENT™ Drug-Coated Balloon's safety and effectiveness [6] - Boston Scientific completed the acquisition of Elutia, Inc. for the EluPro™ BioEnvelope and CanGaroo® Envelope [6] - An agreement was reached to acquire Nalu Medical, Inc., which focuses on chronic pain relief through peripheral nerve stimulation [6] Guidance - For the full year 2025, the company estimates net sales growth of approximately 20% on a reported basis and 15.5% on an organic basis [7] - For Q4 2025, the estimated net sales growth is projected to be between 14.5% and 16.5% on a reported basis and 11% to 13% on an organic basis [8]

Investment Rating - The industry investment rating is optimistic (maintained) [1] Core Insights - Boston Scientific is a rapidly growing leading platform company in the medical device sector, with a projected total market size of $70 billion across its eight segments by 2025 [3] - The main growth drivers are the electrophysiology and left atrial appendage closure businesses, with electrophysiology expected to see significant growth starting in 2024 [3] - The electrophysiology market is projected to reach $10 billion in 2024, with a growth rate of 15%-20% in the following years [11] Summary by Sections Electrophysiology: Rapid Growth and Market Leadership - Electrophysiology is expected to become a global leader, with Boston Scientific leveraging disruptive technology to gain market share [5][10] - The company anticipates a revenue of $1.9 billion from electrophysiology in 2024, representing a 138% year-over-year increase [55] - The PFA (Pulsed Field Ablation) technology is rapidly gaining traction, expected to capture 20% of the atrial fibrillation ablation market in 2024 and potentially double by 2025 [3][11] Left Atrial Appendage Closure: Industry Leadership and Progress - Boston Scientific holds approximately 90% market share in left atrial appendage closure in the U.S., making it the absolute leader in this segment [3] - The revenue from left atrial appendage closure is projected to reach $1.5 billion in 2024, with a CAGR of 22% from 2021 to 2024 [3] - The OPTION data readout is expected to catalyze the adoption of left atrial appendage closure as a first-line treatment for stroke prevention in atrial fibrillation patients [3]

Core Insights - Boston Scientific Corporation (NYSE:BSX) is recognized as one of the top medical device stocks to invest in, with TD Cowen reaffirming a Buy rating and a price target of $115 on October 10 [1] - The recent analyst visit to Boston Scientific's headquarters reinforced confidence in the company's outlook, particularly in the context of its latest investor day [1] Group 1: Company Performance and Outlook - Significant advancements were noted in pulsed field ablation (PFA) technology during the analyst visit, with feedback suggesting a "very compelling" outlook for Boston Scientific despite increasing market competition [2] - CEO Mike Mahoney provided thoughtful responses to growth-related inquiries, emphasizing category leadership as a strategy for achieving success in the market [2] Group 2: Company Profile - Boston Scientific Corporation is a global leader in manufacturing medical devices, including stents, brain stimulation systems, heart monitors, and catheters [3]

Core Viewpoint - Boston Scientific Corporation is positioned for growth with expected increases in earnings and revenue, despite a slight downward revision in EPS estimates [2][3][6] Financial Performance - The company is projected to report an earnings per share (EPS) of $0.71, reflecting a 12.7% increase year-over-year [2][6] - Revenue is anticipated to reach approximately $4.97 billion, marking an 18% rise compared to the same period last year [2][6] - Boston Scientific has a history of exceeding earnings expectations, with an average surprise of 8.11% over the past four quarters [4] Market Position and Innovations - The company specializes in a wide range of medical devices for interventional specialties, with key innovations like the WATCHMAN FLX Pro and AGENT DCB enhancing its market position [1] Financial Metrics - The company has a price-to-earnings (P/E) ratio of approximately 59.41, indicating a high valuation relative to earnings [5][6] - A debt-to-equity ratio of 0.54 suggests a moderate level of debt relative to equity [5][6] - The current ratio of about 1.37 indicates reasonable liquidity to cover short-term liabilities [5]

Core Insights - Boston Scientific announced the acquisition of Nalu Medical for approximately $530 million, marking a significant move in the chronic pain treatment sector [2][3] - The acquisition is expected to enhance Boston Scientific's product line in pain management, integrating Nalu's innovative wireless peripheral nerve stimulation system [5][10] Group 1: Acquisition Details - The acquisition will complete Boston Scientific's strategic investment in Nalu, which began in 2017, and is expected to finalize in the first half of 2026 [3] - Nalu is projected to exceed $60 million in sales by 2025, with a growth rate of over 25% in 2026 [3] Group 2: Strategic Implications - This transaction represents a strategic shift from "central control" to "peripheral control," broadening Boston Scientific's coverage in pain management from deep to peripheral nerve solutions [5] - The acquisition positions Boston Scientific competitively against major players like Medtronic and Abbott in the neuromodulation market [5] Group 3: Nalu's Growth and Technology - Prior to the acquisition, Nalu secured $50 million in growth capital from Trinity Capital, indicating its readiness for commercialization and expansion [6] - Nalu's Neurostimulation System is a battery-free, miniaturized, wireless device that simplifies surgical procedures and reduces maintenance costs [8] Group 4: Clinical Efficacy - Clinical trials demonstrated that Nalu's system achieved over 50% pain relief in 87% and 79% of patients in two randomized controlled studies, with an average pain reduction of 64% [9] - The system's design enhances patient compliance and post-operative experience, making it a viable alternative to traditional pain management methods [9] Group 5: Market Context - Chronic pain affects over 1 billion people globally, with traditional treatments posing risks of dependency and abuse [10] - The market is currently dominated by Medtronic, Abbott, and Boston Scientific, which together hold about 80% market share, but Nalu's innovative approach offers a differentiated solution [10] Group 6: Future Outlook - The acquisition signals a shift in the neuromodulation market towards simpler, more accessible technologies that can be widely adopted in clinical settings [11][12] - The focus is moving from complex systems to lightweight, replicable technology models, indicating a potential turning point for peripheral nerve stimulation [11][12]