Boston Scientific (BSX) Bernstein 42nd Annual Strategic Decisions Conference summary

Business performance and guidance

• Organic growth guidance for 2024 was revised to 6.5%-8% for the full year and 5%-7% for Q2, reflecting challenges in WATCHMAN, EP, and urology segments.

• Despite the lowered guidance, management remains confident in achieving margin improvement and double-digit EPS growth.

• WATCHMAN standalone procedures are declining, with flat revenue expected in Q2 and Q3, but concomitant procedures are growing.

• Urology growth has slowed due to competition and commercial disruption, but new product launches and hiring are expected to improve performance.

• CRM growth remains challenged, with new platforms expected to revitalize the segment by 2027-2028.

Market trends and competitive landscape

• No significant slowdown observed in core markets despite concerns about Medicaid cuts or ACA subsidy expirations.

• EP business has moved from a distant fourth to a strong number two globally, with PFA adoption nearing 80% in the U.S.

• Competitive pressures in EP and WATCHMAN are acknowledged, but robust pipelines and new launches are expected to regain share.

• Penumbra acquisition fills strategic gaps in neurovascular and peripheral vascular, adding high-growth, high-share businesses.

Innovation and pipeline

• Key launches expected in EP (FARAWAVE Ultra, FARAPOINT, FARAFLEX), interventional cardiology (IVL, FRACTURE, hypertension device), and WATCHMAN next-gen platform.

• MiRus investment aims to disrupt the TAVR market with a rhenium alloy valve, offering smaller profile and improved durability.

• Ongoing investments in mapping and imaging (OPAL) to support EP growth and procedure expansion.

• Axonics and CorStone improvements targeted to restore urology growth.