Boston Scientific (BSX) 2024 Wells Fargo Healthcare Conference summary

Strategic growth and portfolio leadership

• Achieved 13%-14% organic growth guidance for 2024, with all regions growing double digits and strong performance in cardiology, endoscopy, and interventional oncology.

• Continued focus on tuck-in M&A, with recent Axonics and Silk deals, and a robust VC portfolio expected to yield results over the next 12-36 months.

• FARAPULSE and Watchman highlighted as transformative technologies, driving significant market expansion in electrophysiology (EP) and left atrial appendage closure (LAC).

• No update to the long-range plan (LRP) in 2024; next refresh likely in 2025, maintaining a goal to be the top-performing medtech company.

• Operating margin expansion targeted at 50-70 basis points for 2024, balancing reinvestment and profitability.

Market outlook and innovation drivers

• 2024 guidance reaffirmed, with strong growth in med surg, PI, and cardiology, and momentum in imaging and AGENT, pending key reimbursement decisions.

• 2025 outlook includes integration of Silk Road and Axonics, continued strength in cardiology and interventional oncology, and full-year benefit from FARAPULSE US launch.

• EP business projected to potentially surpass other divisions, with the market growing over 20% and PFA adoption exceeding expectations, especially in the US, EU, China, and Japan.

• WATCHMAN market expected to grow from $1.5B to $6B by 2030, with OPTION and CHAMPION trials supporting sustained 20%+ CAGR.

• Mapping integration and new catheter form factors are key to closing product gaps and maintaining competitive edge in EP.

Competitive positioning and clinical milestones

• Aggressive field force expansion and workflow simplification aim to neutralize competitors' mapping install base advantages.

• Path to becoming #2 in EP market identified, with portfolio rounding and continued execution as priorities over the next 18 months.

• OPTION trial data to be presented at AHA 2024, with concomitant subgroup analysis expected in early 2025; positive results could enhance patient outcomes and hospital efficiency.

• ACURATE neo2 TAVR trial completed, with US data readout targeted for ACC 2025; Prime launch in Europe expanding addressable market.

• Relievant and other recent acquisitions performing well, with organic growth contributions expected in late 2024.