Boston Scientific’s new device approvals set to drive future growth

USA — Boston Scientific, based in Marlborough, Massachusetts, is on a promising trajectory for 2023 and beyond, with their third-quarter revenue growth of 11% garnering praise from CEO Mike Mahoney.

He confidently stated, “2023 is shaping up to be a great year, a good jumping-off point heading into 2024.”

In a remarkable development, the company shared exceptionally positive clinical trial results for its Agent drug-coated balloon.

This innovative approach effectively reopens blocked arteries for patients who have previously undergone stent treatment.

Chief Medical Officer Kenneth Stein expressed his delight, saying he “literally could not be happier with the ultimate results of that randomized trial.”

The trial demonstrated that the drug-coated balloon outperforms uncoated alternatives in preventing the need for future procedures to restore blood flow.

Boston Scientific has also made a recent regulatory submission to the Food and Drug Administration. The company anticipates approval for this innovative device in the second half of 2024, marking it as the first drug-coated balloon indicated for coronary arteries in the United States.

Further fortifying its position in the healthcare industry, Boston Scientific is awaiting approval for its Farapulse pulsed-field ablation system, designed to employ electrical pulses to scar heart tissue and prevent heart arrhythmias.

Data shared earlier this summer substantiates the device’s safety and efficacy, placing it on par with thermal ablation in treating atrial fibrillation.

Notably, Boston Scientific foresees substantial growth in the global atrial fibrillation market, predicting an increase from US$5 billion to US$8 billion by 2026.

Furthermore, the company expects the share of pulsed-field ablation in this market to surge from less than 5% to a remarkable 40% to 60% by 2026.

The company’s ambitions extend to launching a new treatment for painful diabetic peripheral neuropathy on its spinal cord stimulation device in the first quarter of 2024, following FDA approval for the expanded indication of its WaveWriter Alpha device earlier this month.

CEO Mahoney believes this new indication will be a “big driver” in propelling Boston Scientific’s spinal cord stimulation business forward, closing the gap with competitors like Medtronic, Abbott, and Nevro.

In a strategic move, Boston Scientific has announced plans to acquire Relievant Medsystems for US$850 million.

This acquisition will add a novel low back pain treatment to its neuromodulation portfolio and is expected to be finalized next year.

Highlighting the company’s Q3 trends, Boston Scientific achieved double-digit revenue growth in most segments, except for neuromodulation.

The quarter’s standouts included cardiology, urology, and endoscopy, as noted by Stifel analyst Rick Wise in a research note.

Moreover, the company reported 8.5% growth in the U.S. and double-digit growth in each of its international segments.

Despite its impressive performance, the company’s adjusted gross margin for the quarter was slightly below expectations at 70.2%, primarily due to foreign exchange rate fluctuations. The original target for gross margins in 2023 was 71%.

Looking ahead, Boston Scientific anticipates sales growth of approximately 11% and earnings per share ranging from US$1 to US$1.04 for the full year, reflecting an increase from their previous earnings per share forecast of US$0.87 to US$0.93.

In the fourth quarter, the company expects net sales growth between 9% to 11% and earnings per share in the range of US$0.26 to US$0.30.

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