On July 24, 2024 Boston Scientific Corporation (NYSE: BSX) reported net sales of $4.120 billion during the second quarter of 2024, growing 14.5 percent on a reported basis, 16.1 percent on an operational1 basis and 14.7 percent on an organic2 basis, all compared to the prior year period (Press release, Boston Scientific, JUL 24, 2024, View Source [SID1234645035]). The company reported GAAP net income attributable to Boston Scientific common stockholders of $324 million or $0.22 per share (EPS), compared to $261 million or $0.18 per share a year ago, and achieved adjusted3 EPS of $0.62 for the period, compared to $0.53 a year ago.
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"We delivered a quarter marked by exceptional performance, reflecting our global team’s relentless pursuit of innovation that is supported by strong clinical evidence and investments aligned with our strategy of category leadership," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "We remain excited about our plans for the future, and I am incredibly grateful for the commitment and winning spirit of our employees around the world."
Second quarter financial results and recent developments:
Reported net sales of $4.120 billion, representing an increase of 14.5 percent on a reported basis, compared to the company’s guidance range of 10.5 to 12.5 percent; 16.1 percent on an operational basis; and 14.7 percent on an organic basis, compared to the company’s guidance range of 10 to 12 percent, all compared to the prior year period.
Reported GAAP net income attributable to Boston Scientific common stockholders of $0.22 per share, compared to the company’s guidance range of $0.35 to $0.37 per share, and achieved adjusted EPS of $0.62 per share, compared to the guidance range of $0.57 to $0.59 per share.
Achieved the following net sales growth in each reportable segment, compared to the prior year period:
MedSurg: 9.0 percent reported, 10.1 percent operational and 7.6 percent organic
Cardiovascular: 17.8 percent reported, 19.7 percent operational and 19.0 percent organic
Achieved the following net sales growth in each region, compared to the prior year period:
United States (U.S.): 16.9 percent reported and operational
Europe, Middle East and Africa (EMEA): 13.7 percent reported and 16.1 percent operational
Asia-Pacific (APAC): 7.0 percent reported and 13.2 percent operational
Latin America and Canada (LACA): 15.3 percent reported and 15.7 percent operational
Emerging Markets4: 14.8 percent reported and 19.3 percent operational
Received National Medical Products Administration (NMPA) approval in China for the FARAPULSE Pulsed Field Ablation (PFA) System.
Presented the following clinical data at Heart Rhythm 2024:
Outcomes from a sub-analysis of the pivotal ADVENT clinical trial of the FARAPULSE PFA System, which demonstrated that treatment with the system resulted in an atrial arrhythmia burden (i.e., the total arrhythmia duration experienced by a patient) of less than 0.1% – a clinically meaningful threshold – in significantly more patients compared to thermal ablation.
Acute outcomes from the global FARADISE registry, which demonstrated favorable 30-day outcomes in more than 1,100 patients treated with the FARAPULSE PFA System, with no deaths or reports of coronary spasm, persistent phrenic nerve palsy, atrioesophageal fistula or pulmonary vein stenosis.
Positive results from the ongoing pivotal MODULAR ATP clinical trial of the Modular CRM (mCRM) System5 which met all pre-specified six-month safety and effectiveness endpoints. This is the first modular cardiac rhythm management (mCRM) system that consists of the EMBLEM Subcutaneous Implantable Defibrillator (S-ICD) System and the EMPOWER Leadless Pacemaker.
Initiated the U.S. launch of the AGENT Drug-Coated Balloon, indicated to treat in-stent restenosis in patients with coronary artery disease, and received NMPA approval for the device in China.
Announced agreement to acquire Silk Road Medical, Inc., (Nasdaq: SILK) a publicly traded medical technology company that commercialized a platform of products to prevent stroke in patients with carotid artery disease, subject to customary closing conditions.
Presented outcomes at the 2024 American Society of Pain & Neuroscience meeting from three follow-up studies of patients treated with the Intracept Intraosseous Nerve Ablation System, which demonstrated significant improvements in vertebrogenic pain with nearly one-third of patients 100% pain free after five years.
Elected to the company’s board of directors Dr. Cheryl Pegus, former partner at Morgan Health and former executive vice president of Health & Wellness at Walmart.
1. Operational net sales growth excludes the impact of foreign currency fluctuations.
2. Organic net sales growth excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales.
3. Adjusted EPS excludes the impacts of certain charges (credits) which may include amortization expense, goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), investment portfolio net losses (gains) and impairments, restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits), European Union Medical Device Regulation (EU MDR) implementation costs, debt extinguishment net charges, deferred tax expenses (benefits) and certain discrete tax items.
4. Periodically, we assess our list of Emerging Markets countries, and effective January 1, 2023, modified our list to include all countries except the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada.
5. The EMPOWER Leadless Pacemaker is an investigational device and limited by U.S. law to investigational use only. It is not available for sale. Some device references are for informational purposes only and are pending CE Mark. Not available in the European Economic Area.
Net sales for the second quarter by business and region:
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Increase/(Decrease)
Three Months Ended
June 30,
Reported
Basis
Impact of
Foreign
Currency
Fluctuations
Operational
Basis
Impact of
Recent
Acquisitions/
Divestitures
Organic
Basis
(in millions)
2024
2023
Endoscopy
$ 676
$ 631
7.1 %
1.3 %
8.4 %
(0.5) %
7.9 %
Urology
525
485
8.2 %
0.9 %
9.1 %
— %
9.1 %
Neuromodulation
282
244
15.5 %
0.7 %
16.2 %
(12.5) %
3.7 %
MedSurg
1,483
1,360
9.0 %
1.0 %
10.1 %
(2.5) %
7.6 %
Cardiology
2,047
1,704
20.1 %
1.9 %
22.0 %
— %
22.0 %
Peripheral Interventions
590
535
10.2 %
2.1 %
12.3 %
(2.8) %
9.4 %
Cardiovascular
2,637
2,239
17.8 %
1.9 %
19.7 %
(0.7) %
19.0 %
Net Sales
$ 4,120
$ 3,599
14.5 %
1.6 %
16.1 %
(1.4) %
14.7 %
View News Release Full Screen
Increase/(Decrease)
Three Months Ended June 30,
Reported
Basis
Impact of
Foreign
Currency
Fluctuations
Operational
Basis
(in millions)
2024
2023
U.S.
$ 2,466
$ 2,110
16.9 %
— %
16.9 %
EMEA
822
723
13.7 %
2.5 %
16.1 %
APAC
670
626
7.0 %
6.2 %
13.2 %
LACA
162
140
15.3 %
0.4 %
15.7 %
Net Sales
$ 4,120
$ 3,599
14.5 %
1.6 %
16.1 %
Emerging Markets4
$ 680
$ 592
14.8 %
4.6 %
19.3 %
Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely.
Net sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of acquisitions/divestitures are not prepared
in accordance with U.S. GAAP.
Guidance for Full Year and Third Quarter 2024
The company estimates net sales growth for the full year 2024, versus the prior year period, to be in range of approximately 13.5 to 14.5 percent on a reported basis, and 13 to 14 percent on an organic basis. Full year organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates EPS on a GAAP basis in a range of $1.34 to $1.38 and estimates adjusted EPS, excluding certain charges (credits), of $2.38 to $2.42.
The company estimates net sales growth for the third quarter of 2024, versus the prior year period, to be in a range of approximately 13 to 15 percent on both a reported basis and organic basis. Third quarter organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates EPS on a GAAP basis in a range of $0.36 to $0.38 and adjusted EPS, excluding certain charges (credits), of $0.57 to $0.59.
Conference Call Information
Boston Scientific management will be discussing these results with analysts on a conference call today at 8:00 a.m. ET. The company will webcast the call to interested parties through its website: investors.bostonscientific.com. Please see the website for details on how to access the webcast. The webcast will be available for approximately one year on the Boston Scientific website.