Boston Scientific (BSX) 44th Annual J.P. Morgan Healthcare Conference summary

Business outlook and growth drivers

• Committed to 10%+ growth and 150 basis points of margin improvement over three years, with market growth rate expected to rise from 8% to 9% by 2025-2028.

• Strong performance in electrophysiology (EP), with pulsed field ablation (PFA) as a key growth driver and market share leader.

• WATCHMAN and FARAPULSE highlighted as highly differentiated products, with WATCHMAN holding a 91% share in LAAC and significant growth in concomitant procedures.

• Interventional Oncology and Cardiology divisions are growing strongly, with TheraSphere and AGENT as anchor products and ongoing expansion in China and Japan.

• Continued investment in innovation, both internal and external, with a focus on maintaining above-peer growth and margin expansion.

Product innovation and pipeline

• FARAPOINT PFA catheter recently approved in the U.S., expanding the EP portfolio and opening new indications beyond AF ablation.

• ICE catheter development targets a $1B market, with plans to enter the space soon.

• IVL product (Seismic) in limited market release for peripheral use, with coronary trial results expected in late 2026 and a major launch planned for 2027.

• AGENT DCB has strong growth potential, with ongoing trials for expanded indications that could increase its addressable market from 10% to 30% of PCIs.

• Neuromodulation and pain management portfolio strengthened by recent acquisitions and new platform launches expected in 2026.

Market expansion and operational strategy

• Expansion into ambulatory surgery centers (ASCs) is expected to unlock capacity and drive double-digit growth, especially for simpler procedures.

• China remains a strategic market, with a diversified portfolio and continued double-digit growth despite VBP headwinds.

• Operational efficiency initiatives include a new ERP system, AI-driven productivity, and disciplined SG&A management, reducing SG&A from 37% to 33% of sales over 10 years.

• Free cash flow conversion targeted at 70%-80%, with improvements driven by working capital discipline and higher operating income.

• Pricing strategy aims for flat to down 1% annually, with China as a key area of price pressure.