Summary of Boston Scientific Conference Call Company Overview - **Company**: Boston Scientific - **Key Executives Present**: Dr. Ken Stein (Chief Medical Officer), Lauren Tengler (Head of Investor Relations) Key Industry Insights 1. Growth Drivers - Focus on key growth drivers including the Watchman device and the ablation portfolio [2][10] - Anticipated sustained double-digit growth for Watchman despite recent trial results [8][11] 2. Recent Trial Results - The closure trial for left atrial appendage closure (LAAC) was negative, failing to meet non-inferiority to best medical therapy [2][4] - High procedural-related complications and early bleeding were significant issues in the trial [4][5] - Only half of the devices used in the trial were Watchman devices, with many being older generation devices known for higher risks [3][4] 3. Positive Outcomes from Trials - Despite the negative closure trial, there was an equivalent rate of ischemic stroke in high-risk populations compared to best medical therapy [4][5] - The PROG-17 trial showed more favorable outcomes for LAAC, indicating potential operator experience differences [5][6] 4. Market Dynamics - The company sees no impact on Watchman growth from recent trials, as they provide patients with more reasons to seek AF ablation [10][11] - The proportion of Watchman implants that are concomitant procedures is expected to reach 25% by the end of 2025 [20][21] 5. Future Trials and Expectations - The Champion trial is expected to present results in the first half of 2026, which could reinforce confidence in current indications and expand market growth [12][15] - A positive outcome from Champion could lead to changes in reimbursement and guidelines, enhancing market penetration [16][17] Product Insights 1. Watchman Device - Watchman is accelerating in the U.S. market, particularly due to the OPTION trial and improved CMS coverage [19][20] - The device is being increasingly offered to high-risk stroke patients undergoing ablation procedures [20][21] 2. FARAPulse Technology - FARAPulse is gaining traction in both de novo paroxysmal and persistent AF ablation procedures [29][30] - The company is seeing a shift towards lower redo rates in ablation procedures, with single-digit redo rates reported [30][31] 3. Competitive Landscape - Boston Scientific's Opal mapping system is positioned to compete effectively against incumbents, offering unique advantages for PFA procedures [32][33] - The company anticipates that the AF ablation market will continue to grow, driven by underpenetration and the increasing use of new technologies [34] 4. Other Growth Areas - The company is optimistic about its renal denervation technology and the potential for ultrasound-based devices to improve safety and efficacy [36][37] - Other promising areas include drug-coated balloons and interventional oncology, particularly with Y90 beads for treating solid tumors [39][40] Conclusion - Boston Scientific is positioned for continued growth in the healthcare sector, particularly in electrophysiology and ablation technologies, despite recent challenges in clinical trials. The company is focused on leveraging positive trial outcomes and expanding its product offerings to capture a larger market share.

CVRx Conference Call Summary Company Overview - **Company**: CVRx - **Industry**: Cardiovascular medical devices - **Product**: Barostim, a neuromodulation therapy for heart failure - **Annual Total Addressable Market (TAM)**: $2.2 billion [1][5] Key Points and Arguments Heart Failure Market - Heart failure leads to over 1 million hospitalizations, 1.3 million emergency room visits, and 8 million physician office visits in the U.S. annually, with spending projected to reach approximately $70 billion by the end of the decade [1] - Heart failure is a progressive disease with significant mortality rates, exceeding those of the top five cancers [1] Treatment Landscape - Current treatment involves quad therapy (four Class I drugs), but only 1% of patients reach therapeutic doses, and 40% discontinue at least one drug within the first year [3] - Patients express a preference for a higher quality of life over mere life extension [4] - Barostim targets the "forgotten middle" of heart failure patients, aiming to restore quality of life [4] Clinical Evidence and Efficacy - Barostim has shown a 68% improvement in New York Heart Class functional status and a 94% response rate among patients [10] - A real-world study indicated an 85% reduction in hospitalization rates post-implantation of Barostim [11] - The therapy operates by restoring signaling from baroreceptors to the brain, effectively reducing sympathetic tone and neurohormonal toxicity [8][9] Go-to-Market Strategy - CVRx is focusing on building a specialized sales organization and deepening adoption in targeted accounts rather than broad distribution [12][13] - The company has identified 300-400 centers in the U.S. with the highest potential for Barostim adoption based on patient volume and experience with similar devices [15][16] Barriers to Adoption - Key barriers include therapy awareness, clinical evidence, patient access, and reimbursement issues [18][19] - Significant outreach efforts are being made to educate referral physicians and advanced practice providers [20] Reimbursement Developments - Secured a permanent inpatient DRG reimbursement of $43,000 and an outpatient code at $45,000 [24] - Transitioning to a permanent category one procedural code on January 1, which will enhance payment certainty for surgeons and reduce prior authorization denials [25][26] Financial Performance - Reported Q3 revenue of $14.7 million, with guidance for Q4 revenue between $15 million and $16 million [27] - Gross margin reported at 87%, with a cash balance of $85 million [27] Additional Important Information - The therapy has a remarkable 97% freedom from complications during implantation [9] - The company is actively generating further clinical evidence to support the therapy's efficacy and safety [21][22][23]

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 - Netflix's third-quarter earnings fell short of expectations, primarily due to a one-time tax charge exceeding $600 million related to its operations in Brazil, leading to a 10.1% drop in its shares [5][8] - Intuitive Surgical experienced a significant increase in its stock price by 13.9% after reporting better-than-expected quarterly results, driven by a rise in procedures using its robotic surgical systems [7][8] - Major U.S. equity indexes declined, with the S&P 500 down 0.5%, the Dow down 0.7%, and the Nasdaq down 0.9%, influenced by the underperformance of tech stocks and anticipation of Tesla's earnings report [3][7] Company-Specific Summaries - **Netflix (NFLX)**: Reported lower-than-expected net income for Q3, impacted by a substantial tax expense related to Brazil, resulting in a significant share price decline [5][8] - **Intuitive Surgical (ISRG)**: Achieved strong quarterly sales and profit figures, leading to a notable increase in stock price, and raised its full-year growth forecast for procedures [7][8] - **Lennox International (LII)**: Experienced a 10.2% drop in shares due to disappointing quarterly sales, attributed to a challenging macroeconomic environment and regulatory changes [4] - **Coinbase Global (COIN)**: Shares fell 5.4% as major cryptocurrencies declined, with Bitcoin dropping below $110,000 [6] - **Avery Dennison (AVY)**: Reported better-than-expected results, leading to a 9.5% increase in shares, supported by improved pricing and a partnership with Walmart [9] - **Boston Scientific (BSX)**: Shares rose 4% after surpassing sales and profit estimates, benefiting from strong sales of its medical devices [10]

Financial Data and Key Metrics Changes - Total company operational sales grew 19% in Q3 2025, while organic sales increased by 15%, exceeding the guidance range of 12% to 14% [6][22] - Adjusted EPS for Q3 2025 was $0.75, reflecting a 19% growth and surpassing the guidance range of $0.70 to $0.72 [6][22] - Adjusted operating margin for Q3 was 28%, with an adjusted gross margin of 71%, showing a 60 basis point improvement year-over-year [23][6] 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 experienced a 9% growth, 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 single-digit growth in arterial due to pricing pressures in China [11] Market Data and Key Metrics Changes - U.S. operational sales grew 27%, with strong performance across cardiovascular businesses, endoscopy, and neuromodulation [7] - Europe, Middle East, and Africa (EMEA) saw a 2% decline operationally due to specific headwinds, while Asia-Pacific grew 17% operationally [7][8] - China experienced mid-teens growth, driven by strong performance in electrophysiology and the recent approval of the Watchman Flex Pro device [8][9] Company Strategy and Development Direction - The company is focused on sustaining above-market growth, with a full-year 2025 organic growth guidance of approximately 15.5% [6][25] - The acquisition of Nalu Medical is expected to expand the company's portfolio into a new pain adjacency, complementing its existing strengths [11][81] - The company aims to achieve 10% plus average organic revenue growth from 2026 to 2028, along with annual adjusted operating margin expansion [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth despite challenges, with a focus on innovation and clinical evidence generation [20][39] - The company does not anticipate procedural pull-forwards due to external pressures, maintaining consistent procedural demand [38] - Management remains optimistic about the growth potential in the electrophysiology and Watchman markets, projecting a 20% CAGR over the long-range plan [33][48] Other Important Information - The company faced a $30 million backorder due to an ERP system upgrade, impacting various business lines but expected to improve in Q4 [7][75] - The company maintains a strong cash position with $1.275 billion on hand and a gross debt leverage ratio of 2.0 times [24] Q&A Session Summary Question: Is Watchman a key growth driver? - Management confirmed that Watchman is a significant growth driver, with expectations of continued market expansion and strong adoption rates [32][34] Question: What is the outlook for the China market? - Management indicated strong growth in China, with expectations for continued double-digit growth despite pricing pressures [39][40] Question: How will the new product cycle impact CRM growth? - Management expressed confidence in the upcoming Denali platform and Empower leadless pacemaker, anticipating improved growth in the CRM segment [85][86] Question: What are the drivers for growth outside EP and Watchman? - Management highlighted strong performance in neuromodulation, endoscopy, and the potential of the Nalu acquisition to enhance growth in the pain management segment [60][61]

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% to 14% [5][20] - Q3 adjusted EPS was $0.75, reflecting a 19% increase and surpassing the guidance range of $0.70 to $0.72 [5][20] - Adjusted operating margin for Q3 was 28%, with an expected full-year adjusted EPS guidance of $3.02 to $3.04, representing growth of 20% to 21% [6][25] Business Line Data and Key Metrics Changes - Urology sales grew 27% operationally and 5% organically, driven by international business and Global Stone Management [8] - Endoscopy grew 9%, with double-digit growth in key products, particularly in the U.S. [9] - Neuromodulation sales increased by 9%, supported by strong performance in the brain franchise and pain franchise [9][10] - Cardiology sales grew 23%, with interventional cardiology therapy sales growing 3% [12] 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 [6][7] - Asia-Pacific grew 17% operationally, led by strong growth in Japan and China [7][8] - Watchman sales grew 35%, reflecting strong uptake in the U.S. [14] Company Strategy and Development Direction - The company is focused on strategic tuck-in M&A in high-growth adjacencies, with recent acquisitions including Nalu Medical [20][24] - The company aims for 10% plus average organic revenue growth from 2026 to 2028, with a target of 50 basis points of annual adjusted operating margin expansion [26] - The company is investing in innovative solutions across both AF and non-AF segments to outpace market growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining above-market growth, particularly in the U.S. and Asia-Pacific [5][6] - The company anticipates improvements in backorders and expects to recover from ERP implementation challenges in Europe [7][10] - Management remains optimistic about the growth potential of Watchman and EP technologies, projecting a 20% CAGR over the long-range plan [32][44] Other Important Information - The company expects full-year 2025 reported revenue growth of approximately 20%, with operational revenue growth of about 19% [24] - Free cash flow for Q3 was $1.163 billion, with expectations of approximately $3.5 billion for the full year [23] Q&A Session Summary Question: Is Watchman a key growth driver? - Management confirmed that Watchman is a significant growth driver, with expectations of continued strong performance and market penetration [30][32] Question: What is the outlook for the China market? - Management indicated that the China business is performing well, with expectations of double-digit growth despite VBP price pressures [36][38] Question: How will the new product cycle impact CRM growth? - Management expressed confidence in the upcoming Denali platform and Empower leadless pacemaker, which are expected to enhance growth in the CRM segment [78][80] Question: What are the drivers for growth outside of EP and Watchman? - Management highlighted strong performance in neuromodulation, endoscopy, and the potential for Urology to improve in 2026 [55][56]

Company Performance - Boston Scientific reported Q3 sales of $5.07 billion, reflecting a year-over-year growth of 20.3% [1] - Electrophysiology sales reached $865 million in Q3, marking a significant year-over-year growth of 64.2% [2][4] - The company's cardiovascular sales totaled $3.34 billion, with a growth rate of 22.4% year-over-year [1] Product Insights - The growth in electrophysiology sales was primarily driven by the pulsed field ablation (PFA) portfolio, particularly the Farapulse system [2] - The Farapulse PFA system has been utilized in over 500,000 procedures, maintaining its position as the leading PFA technology [4] - Sales of the Farapulse system grew in double digits in the U.S. during Q3, aided by the adoption of the Opal mapping system [4] Market Outlook - Boston Scientific anticipates that PFA's global penetration will reach 50% by the end of 2025 and approximately 80% by 2028 [6] - The global electrophysiology market is projected to grow from an estimated $13 billion in 2025 to $20 billion in 2028 [6] - The company aims to continue expanding its market share in electrophysiology and maintain a strong leadership position in PFA through innovative products and resources [5]

From the beginning of The Walkman, there were a lot of people who were like really up in arms about the existence of this thing. They're like, "It's isolating people. They're wearing headphones. They're not interacting in the real world. How am I supposed to know who's here?" You know, stuff that we're very familiar with now. But it was this all these questions about like >> sort of individualism versus isolation >> is this big messy spectrum.Uh, and the Watchman just took that to a whole other level becaus ...

The way a CRT works is you have an electron gun that just shoots electrons at something and that's how it actually like takes and shows you a picture. Uh, normally in a TV that thing sits behind the screen that you see, right. And so that's the reason for the depth is like the bigger the screen, the more depth you need in order for the electron gun to hit all the areas.Uh, what Sony did was take that and turn it downwards. So instead of being like right behind the screen, it's actually below it. And you can ...