Core Insights - Boston Scientific achieved over $20 billion in sales for 2025, marking a mid-teens growth for the second consecutive year, driven by innovation and execution across business units [6][30] - The company reported a Q4 operational sales growth of 14% and organic sales growth of 13%, exceeding guidance [6][29] - Full year 2025 adjusted EPS grew 22% to $3.06, surpassing guidance, with operational sales growth of 19% and organic sales growth of 16% [7][30] Financial Performance - Q4 consolidated revenue reached $5.286 billion, representing a 15.9% reported growth, with operational revenue growth of 14.3% [29] - Full year 2025 consolidated revenue was $20.74 billion, a 19.9% increase, with operational revenue growth of 19.2% [30] - Adjusted gross margin for Q4 was 70.7%, with a full year adjusted gross margin of 70.6%, reflecting a 30 basis point expansion [31] Business Unit Highlights - The U.S. market saw a 17% growth in Q4 and 26% for the full year, particularly strong in EP, WATCHMAN, and ICTx [8] - The Cardiovascular segment delivered 16% operational growth in Q4 and 22% operational growth for the full year [14] - WATCHMAN business grew 29% in Q4, with strong adoption of concomitant procedures [22] Regional Performance - Europe, Middle East, and Africa (EMEA) grew 5% in Q4 and 3% for the full year, with high single-digit growth expected excluding the impact of product discontinuation [9] - Asia Pacific region grew 15% operationally in Q4 and 14% for the full year, driven by strong performance in Japan and China [10][11] Future Outlook - For Q1 2026, the company expects organic growth of 8.5% to 10% and for the full year, guidance is set at 10% to 11% [8][36] - Adjusted EPS for 2026 is projected to be between $3.43 and $3.49, indicating a growth of 12% to 14% [38] - The company anticipates continued momentum in EP and WATCHMAN, with expectations for the market to grow approximately 15% in 2026 [26][72] Strategic Acquisitions - Boston Scientific announced agreements to acquire Penumbra and Valencia Technologies, expected to close in 2026, enhancing its portfolio in high-growth segments [15][35] - The acquisition of Nalu Medical has been completed, complementing the neuromodulation pain franchise [35]

Industry Overview - The Zacks Medical - Products industry is facing challenges due to tariffs imposed by the U.S. on trading partners, impacting margins for companies like GE HealthCare, Baxter, and Abbott [1] - Medical device makers are experiencing rising commodity and manufacturing costs post-COVID-19, particularly in consumer-facing areas like Nutrition, leading to price hikes that may constrain volume due to increased price sensitivity among consumers [2] - The industry's profitability is under strain from tariff-related expenses and persistent component shortages, which create inefficiencies and constrain output [7] Trends and Innovations - Industry players are mitigating challenges through product innovation and the adoption of AI and digital services, with the rise of GLP-1 medication acting as a tailwind for certain medical device areas [3] - The market for remote patient monitoring platforms is projected to reach $57 billion by 2030, driving margin expansion and shifting profit pools from hardware to data-driven services [9] - The U.S. market is shifting from inpatient hospital settings to Ambulatory Surgery Centers (ASCs) and home-based monitoring, with the ASC market expected to reach $205 billion by 2030 [10] Company Performance - Boston Scientific (BSX) is positioned for strong growth driven by demand across its diversified product portfolio, with a commitment to over 10% growth over the next three years [29] - ResMed is experiencing strong momentum with 11% top-line growth in Q2 fiscal 2026, driven by rising demand for CPAP therapy and the adoption of GLP-1 drugs [35][36] - Phibro Animal Health Corporation (PAHC) is benefiting from the integration of the Zoetis Medicated Feed Additive portfolio, contributing $80.5 million in sales in Q1 fiscal 2026, and expects favorable net price impacts to improve profitability [42] Financial Outlook - The Zacks Consensus Estimate for BioLife Solutions (BLFS) indicates a 16.4% revenue growth for 2026, with earnings expected to grow by 38.1% [27] - Boston Scientific's revenue for 2026 is estimated at $22.32 billion, projecting an 11.3% growth, with EPS expected to improve by 13.5% [32] - ResMed's revenue for fiscal 2026 is pegged at $5.58 billion, indicating an 8.5% growth, with EPS expected to rise by 15% [39] - PAHC's revenue for fiscal 2026 is estimated at $1.47 billion, projecting a 13.1% growth, with EPS expected to improve by 32.1% [46]

Boston Scientific (NYSE:BSX) FY Conference January 13, 2026 12:00 PM ET Company ParticipantsMike Mahoney - Chairman and CEOKen Stein - Senior VP and Chief Medical OfficerJon Monson - EVP and CFOConference Call ParticipantsRobbie Marcus - Medtech Senior AnalystRobbie MarcusHello, everyone. Welcome. I'm Robbie Marcus, the MedTech Analyst at JPMorgan. Really happy to host Boston Scientific. We have Mike Mahoney, CEO, Jon Monson, CFO, and Dr. Stein, Chief Medical Officer. We're going to do a fireside chat here. ...

Core Insights - Boston Scientific (BSX) has a stretched valuation with a Value Score of C, trading at a forward five-year price/earnings (P/E) of 27.77X, which is above its median and the industry average of 20.01X [1] - The company's performance has been mixed over the past year, underperforming key rivals Abbott (ABT) and Medtronic (MDT), but still faring better than the industry and sector [2] Valuation and Market Position - BSX's P/E ratio is higher than the broader Medical sector's P/E of 21.03X, indicating an expensive valuation compared to peers [1] - Key competitors, Abbott and Medtronic, are trading at lower P/E ratios of 22.15X and 20.01X, respectively [1] Business Performance and Growth Drivers - WATCHMAN sales increased by 35% in Q3 2025, supported by growing U.S. concomitant use, while the Electrophysiology (EP) business surged 63% in the same quarter due to FARAPULSE adoption [9][15] - The Urology business is driving strong sales from the global stone management franchise, with expectations of improving growth through 2026 following recent European approvals [10] - Endoscopy is experiencing robust growth in anchor products, and the Intracept procedure for chronic vertebrogenic pain is a significant growth driver in Neuromodulation [11] Strategic Initiatives - Boston Scientific aims to outpace market growth across neuromodulation, urology, and endoscopy, which together serve a global market of $20 billion growing nearly 7% [12] - The planned acquisition of Nalu Medical will expand the portfolio into peripheral nerve pain, presenting additional growth opportunities [12] Future Outlook - Management expects approximately 25% of U.S. WATCHMAN procedures to be performed concomitantly by the end of 2025, with a projected market growth of roughly 20% in the coming years [14] - Analysts remain optimistic about the company's earnings for 2025 and 2026, indicating confidence in its growth trajectory [16] Conclusion - Despite a premium valuation, Boston Scientific's innovative portfolio and strategic execution position it well for long-term growth, particularly through its WATCHMAN and EP products [18]

Core Insights - Atrial fibrillation (AF) affects nearly 38 million people globally, with projections indicating this number could nearly triple by 2030. Boston Scientific (BSX) is a leader in left atrial appendage closure (LAAC) devices and is expanding in the pulsed field ablation (PFA) segment, which is the fastest-growing area in AF treatment. The FARAPULSE technology has become widely used since its U.S. launch in 2024 [1][8]. Company Developments - Over 500,000 patients have been treated with the FARAPULSE system, demonstrating consistent real-world results. The one-year results from the FARADISE trial confirm favorable procedural and safety outcomes across various ablation strategies and AF types [2]. - In Q3 2025, FARAPULSE experienced strong double-digit growth in the U.S., driven by the adoption of the OPAL HDx mapping system. One in three FARAPULSE accounts now utilizes the integrated FARAWAVE NAV and OPAL device. The FDA has also approved expanded labeling for the system to treat drug-refractory, symptomatic, persistent AF, supported by clinical evidence from the ADVANTAGE AF trial [3][4]. - Positive results from the second phase of the ADVANTAGE trial support the FARAPOINT PFA catheter as an adjunct technology for treating atrial flutter in patients with persistent AF, with plans for launch by the end of 2025. The company is investing to exceed the expected 15% market growth through 2028 by enhancing its innovative solutions across AF and non-AF segments [4]. Market Position and Performance - Boston Scientific shares have increased by 2.5% over the past year, contrasting with a 3.3% decline in the industry [7]. - The stock is currently trading at a forward five-year Price-to-Earnings (P/E) ratio of 27.06, which is above its median but lower than the industry average [9]. - Earnings estimates for Boston Scientific are trending upward, with current estimates for the current quarter at $0.78 and for the next year at $3.45 [10][11].

Core Insights - Boston Scientific has experienced significant growth over the past few years and is looking to build on this momentum moving forward [1] - The company aims to highlight its current growth drivers, such as FARAPULSE and WATCHMAN, while also focusing on future opportunities in adjacent markets [2] Company Growth and Strategy - The recent Investor Day was successful in showcasing the excitement around Boston Scientific's current offerings and future potential [2] - The company emphasizes a strong market growth in the procedures it addresses, alongside a commitment to innovation to enhance product value [2]

Financial Data and Key Metrics Changes - The electrophysiology (EP) business has experienced significant growth, with FARAPULSE driving growth at approximately twice the market rate since its introduction in the EU in 2021 [2][4] - The U.S. market penetration for FARAPULSE has quickly surpassed 50%, indicating strong adoption and market presence [4][5] Business Line Data and Key Metrics Changes - The FARAPULSE ecosystem, including FARAWAVE catheter and Opal mapping system, has been pivotal in driving success across global markets [2][3] - The Watchman franchise is projected to be a long-term growth engine for the company, with expectations of over 20% growth depending on the outcomes of OPTION and CHAMPION trials [14][17] Market Data and Key Metrics Changes - The global electrophysiology market is valued at $13 billion, with $9 billion attributed to atrial fibrillation (AF) and $4 billion to other indications [9] - The renal denervation market is being re-evaluated, with hypertension being a common condition affecting one in four adult Americans, presenting a significant opportunity for device-based therapies [38] Company Strategy and Development Direction - The company is focused on expanding its leadership in the electrophysiology market while exploring adjacent markets such as diabetes [9][10] - There is a strategic emphasis on category leadership across various medical technology segments, including interventional cardiology and structural heart [62][63] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive landscape in cardiology, emphasizing the importance of understanding competition and focusing on their ecosystem of products [10][12] - The company is preparing for a shift of inpatient procedures to outpatient settings, aligning with CMS goals to enhance accessibility [47][48] Other Important Information - The company is investing in artificial intelligence to enhance product development and operational efficiency, with applications in imaging and electrophysiology [59][61] - The upcoming CHAMPION trial is expected to significantly expand the eligible patient population for the Watchman device, potentially tripling its total addressable market to $6 billion by 2030 [17][18] Q&A Session Summary Question: What is the growth outlook for the Watchman franchise? - The Watchman franchise is expected to grow over 20% long-term, contingent on positive outcomes from the OPTION and CHAMPION trials [14][17] Question: How does the company view the competitive landscape in electrophysiology? - The company recognizes the competitive nature of the market but believes it has a strong understanding of upcoming competition and is focused on its product ecosystem [10][12] Question: What is the timeline for the Seismic device and clinical data? - The Seismic device is currently enrolling in the Fracture ID study, with completion anticipated in Q1 2026 and a commercial launch expected in the first half of 2027 [30][31] Question: How does the company plan to address the access issues in renal denervation? - The company plans to focus on educating both physicians and patients about the therapy, which is crucial for market development [45][46] Question: What are the expectations for the CRM market? - The CRM market is currently the lowest growth area for the company, but a complete revamp of the CRM portfolio is underway, aiming for at or above market growth [50][52]

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 - 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]

Financial Data and Key Metrics Changes - In Q3 2025, total company operational sales grew 19%, and organic sales grew 15%, exceeding the guidance range of 12%-14% [6][22] - Q3 adjusted EPS was $0.75, reflecting a 19% increase and surpassing the guidance range of $0.70-$0.72 [6][22] - Adjusted operating margin for Q3 was 28%, with an expectation to expand full-year adjusted operating margin by approximately 100 basis points [6][23][26] Business Line Data and Key Metrics Changes - Urology sales grew 27% operationally and 5% organically, driven by international business and Global Stone Management [9] - Endoscopy grew 9%, with double-digit growth in key products [10] - Neuromodulation sales increased by 9%, supported by strong performance in the brain franchise [10] - Peripheral interventions sales grew 16% operationally and 6% organically, with low double-digit growth in the U.S. [11] - Cardiology sales grew 23%, with interventional cardiology therapy sales growing 3% [14] Market Data and Key Metrics Changes - U.S. operational sales grew 27%, while Europe, Middle East, and Africa (EMEA) declined 2% due to specific headwinds [7][8] - Asia-Pacific grew 17% operationally, led by strong growth in Japan and China [8] - WATCHMAN sales grew 35%, reflecting strong market penetration and adoption [15][16] Company Strategy and Development Direction - The company is focused on strategic tuck-in M&A in high-growth adjacencies, with the recent agreement to acquire Nalu Medical to expand into peripheral nerve pain [11][24] - The company aims for 10%+ average organic revenue growth from 2026 to 2028, with a target of 70%-80% annual free cash flow conversion [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining above-market growth, with expectations for continued strong performance in the cardiovascular and MedSurg segments [6][7] - The company anticipates improvements in backorders and operational performance in Europe in the fourth quarter [8] - Management remains optimistic about the growth potential of WATCHMAN and electrophysiology, projecting a 20% CAGR over the long-range plan [32][48] Other Important Information - The company experienced a backorder of approximately $30 million due to an ERP system upgrade, impacting various business lines [8][76] - The company expects to close the acquisition of Nalu Medical in the first half of 2026 [11][24] Q&A Session Summary Question: Is WATCHMAN a key growth driver? - Management confirmed that WATCHMAN is a significant growth driver, with expectations for continued market expansion and strong performance [32] Question: What is the outlook for the China market? - Management indicated that the China business is performing well, with expectations for double-digit growth despite price pressures [39] Question: How will the new product cycle impact CRM growth? - Management expressed confidence in the upcoming product cycle, including the Denali platform and EMPOWER leadless pacemaker, to strengthen CRM growth [86] Question: What are the dynamics outside EP and WATCHMAN? - Management highlighted strong growth in other divisions, including neuromodulation and endoscopy, and emphasized ongoing investments in these areas [58]