Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the adoption and impact of FARAPULSE in the field, and how much of the guidance raise is attributed to this product?
A: Michael F. Mahoney, Chairman, President & CEO of Boston Scientific, highlighted FARAPULSE as a transformational product, noting its rapid adoption by both RF and cryo users in the U.S. and sustained momentum in Europe. The product's safety, ease of use, and effectiveness have driven its quick acceptance in the market. The company continues to invest in its commercial footprint and supply chain to meet demand.
Q: With the updated long-range plan (LRP) forecasting 8% to 10% organic growth from 2024 to 2026, do you still anticipate growth acceleration in 2025?
A: Michael F. Mahoney expressed satisfaction with the current business momentum, which led to an increased guidance for 2024. However, he stated it would be premature to confirm accelerating growth for 2025 at this stage, although it remains a goal.
Q: Can you provide more details on the performance and future expectations for the ACURATE neo valve, especially regarding its status in the U.S. and Europe?
A: Michael F. Mahoney mentioned strong adoption in Europe and excitement about the recent submission of the next-generation ACURATE Prime valve in Europe. However, for the U.S., Boston Scientific is awaiting full-year follow-up data and will discuss future steps at a later date.
Q: How are you managing operating margins, and what are the expectations for margin improvement over the next three years?
A: Daniel J. Brennan, CFO, explained that while gross margin was lower this quarter, the company aims for improvement throughout the year. Over the next three years, all P&L lines are expected to contribute to achieving a 150 basis point improvement, aiming for an adjusted operating margin close to 28% by 2026.
Q: What drove the 85% growth in U.S. EP sales, and was there any significant stocking dynamic involved?
A: Michael F. Mahoney clarified that the impressive growth was due to new account openings and rapid adoption of the technology, with no significant one-time stocking. The company is seeing hospitals purchasing additional consoles, indicating strong and sustained product use.
Q: Regarding the new DRG for ablation and left atrial appendage closure, how do you view the market growth potential before indication expansions?
A: Michael F. Mahoney and Dr. Kenneth M. Stein, Senior VP & Global Chief Medical Officer, discussed the healthy market dynamics and under-penetration of WATCHMAN procedures. Upcoming trials like OPTION and CHAMPION could significantly expand the market if successful.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
