The paragraph introduces the Boston Scientific First Quarter 2024 Earnings Call and identifies the participants on the call. It also mentions the press release with Q1 results and provides a link to the Investor Relations section of the company's website. The duration of the call, the agenda, and the participants for the Q&A session are also mentioned. The paragraph also clarifies the definition of operational and organic revenue growth and lists the relevant acquisitions and divestitures excluded for organic growth.

In the first quarter, the company's divestitures include the Endoscopy, Pathology business, and the previously-announced acquisition of Axonics, Inc. is expected to close in the second half of 2024. The company's sales and revenue are organic and the call contains forward-looking statements. Factors that may cause differences in actual results are described in the Risk Factors section of the company's most recent 10-K and subsequent 10-Qs. The company's first quarter results surpassed expectations due to its innovative portfolio, execution of its category leadership strategy, and the global team's winning spirit.

In the first quarter of 2024, the company saw strong growth in operational sales and organic sales, exceeding their guidance range. This growth was driven by diversified businesses and regions, with six out of eight business units and all regions experiencing double-digit growth. Adjusted EPS and operating margin also exceeded expectations. For the second quarter and full year of 2024, the company is expecting continued growth, with a raised guidance for organic growth and adjusted EPS. The US and Europe, Middle East, and Africa regions were particularly strong, with above-market growth driven by EP, Endoscopy, Urology, and PI businesses. The company expects to continue outpacing the market with investment in emerging markets.

The Asia-Pac region saw a 26% operational growth in the first quarter of 2023, with all cardiovascular business units performing well. Japan and China both saw double-digit growth, with the success of products such as AGENT DCB and Rezūm. In the Urology business unit, sales grew 10% organically, driven by strong performance in stone management and prosthetic urology. Endoscopy sales also saw growth, thanks to a diverse portfolio and key products such as AXIOS and single-use imaging products. The Neuromodulation business unit had a 10% operational growth, but saw a decline in organic growth due to pressure in the US SCS business. However, the company did receive FDA approval and launched a new product for non-surgical back pain relief.

The Relievant business is performing well with expected sales growth in 2024. Peripheral Interventions, Venous, and Interventional Oncology franchises all saw double-digit growth in sales. TheraSphere also saw double-digit growth and positive outcomes were shown in a real-world study. Cardiology sales grew 18% with strong growth in Interventional Cardiology Therapies and Structural Heart Valves, driven by international regions and new products. AVVIGO+ and AGENT DCB received FDA approval and a limited launch is expected in the second quarter. ACURATE neo2 also saw mid-teens growth.

In the first quarter of 2023, the company has submitted for CE Mark for their next-generation ACURATE Prime Valve and expects to launch it in Europe in 2025. Their WATCHMAN product had a strong quarter with 19% organic growth and maintained their market-leading position. They also received FDA clearance for the TruSteer Steerable Sheath, allowing for better device positioning. International growth was driven by momentum and they launched WATCHMAN FLX Pro in Japan and Canada. Cardiac Rhythm Management sales grew 5% organically, and their Diagnostics franchise saw double-digit growth. In Core CRM, their low-voltage and high-voltage businesses saw mid-single digit and low-single digit growth respectively. The company remains the clear market leader in the space and is looking forward to presenting data at HRS for their EMBLEM S-ICD. Electrophysiology sales saw a 72% growth, driven by the adoption of the FARAPULSE platform. International sales also saw strong growth with continued account openings and utilization in Europe.

The company's first quarter sales grew significantly thanks to the launch of FARAPULSE and positive feedback from users. They plan to continue investing in their EP portfolio and PFA capabilities, with upcoming clinical trials and data presentations. The company also released a report highlighting their efforts to improve patient outcomes and prioritize environmental, social, and governance goals. They remain committed to their values-driven culture and are confident in their team's ability to meet these challenges.

The company plans to continue improving and investing for the long term while maintaining strong financial performance. In the first quarter of 2024, the company saw a 13.8% increase in revenue and a 20.6% increase in adjusted earnings per share. Adjusted gross margin was slightly lower than expected due to inventory charges and product mix, but the company expects it to improve in the second half of the year. Adjusted operating margin for the first quarter was 26.2%.

The company is committed to expanding its operating margin by 30-50 basis points in 2024, while also making investments to support key launches. Their first quarter operating margin was 17.5%, and their adjusted interest and other expenses were $80 million. Their tax rate for the quarter was 10.7%, and their operational tax rate was 13.7%. The company had negative free cash flow of $15 million in the first quarter, but expects it to exceed $2 billion in 2024. They also recently completed an acquisition and have cash on hand to partially fund another acquisition. Their top capital allocation priority is strategic M&A, followed by share purchases.

The company's legal reserve decreased by $94 million in Q1 2024 and they expect full year revenue growth to be 11% to 13%. The operational revenue growth is expected to be 11.5% to 13.5% and organic revenue growth is expected to be 10% to 12%. Adjusted below-the-line expense is predicted to be $315 million and the operational tax rate is estimated to be 14%. Adjusted earnings per share are expected to grow by 12% to 14% in 2024, with a $0.04 headwind from foreign exchange. Second quarter adjusted earnings per share are expected to be $0.57 to $0.59. More details can be found on the company's Investor Relations website.

The speaker thanks the moderator and opens up the Q&A session. The first question is about the success of FARAPULSE and EP in general, with a substantial beat in both the US and overseas. The speaker praises the pioneering work of the FARAPULSE team and the company's investment in the technology. They also mention the rapid adoption of FARAPULSE by both RF and cryo users, and the company's efforts to meet demand and expand their commercial footprint. Additionally, there is ongoing momentum in Europe and plans to open new centers.

The speaker congratulates the company on a strong quarter and asks about their long-term growth projections. The company had previously projected 8-10% organic growth for 2024-2026, with acceleration in 2025. However, they are now guiding for 10-12% organic growth and the speaker asks if they still expect acceleration in 2025 and how this impacts their previous projections.

Dan Brennan outlines the company's goal to be a high-performing medtech company, and the first quarter results have led to an increase in guidance. They received FARAPULSE earlier than expected, but they are not committing to accelerating growth in 2025 at this point. Mike Mahoney discusses the success of ACURATE neo in Europe and the recent prime submission, but there is no new information regarding the US market. They are waiting for the full year follow-up.

The company will be working with regulators to determine the release of clinical data and future steps in the US. The operating margins are expected to improve over the next three years, with all lines contributing, including gross margin, which is expected to improve from its current level. The company is focused on achieving a 150 basis point improvement by 2026, which would put them at a 28% operating margin.

The paragraph discusses the strong growth of the EP portfolio, with a 70% overall growth and 85% growth in the US. This was driven by new account openings and rapid adoption of the technology, with multiple hospitals buying second consoles. In Europe, increased supply has led to more account openings and utilization. The impact of the new tech add-on payment (NTAP) on FARAPULSE is less significant but will continue to be evaluated.

The speaker, Vijay, asks a question about the new DRG for ablation and left atrial appendage closure and the overall LAAC market. The response is that the market can sustain its 20%+ growth without indication extensions, but there are upcoming trials that could significantly widen the market. The speaker, Dr. Stein, also mentions that the WATCHMAN procedure is still a healthy and under-penetrated therapy.

The speaker discusses two trials related to the use of WATCHMAN as an alternative to oral anticoagulants following ablation. The results of these trials are expected to be presented in the near future. The speaker also mentions a proposed rule from CMS that would allow for a concomitant DRG for ablation procedures, which is seen as beneficial for patients and hospitals. The speaker believes that these developments will increase the number of AF ablation and WATCHMAN procedures.

The speaker congratulates the company on a strong quarter and asks about slower growth in their Interventional Cardiology and CRM businesses. The CEO explains that the growth in Interventional Cardiology is driven by advanced imaging and complex coronary capabilities, while drug-eluting stents represent a small portion of the business. The company has also seen success with their drug-coated balloon in Asia.

The company expects enhanced growth in the second half of 2024 and 2025 from a revamped portfolio in the US and Europe, particularly in the Structural Heart and CRM businesses. The CRM business is growing in line with the market, with the S-ICD business being a strong driver and the diagnostics business being the biggest growth driver. The company is also seeing increased demand for their RHYTHMIA diagnostic mapping product, but they are encouraging accounts to gradually incorporate it into their workflow.

The speaker discusses the potential for the AGENT product in the US, mentioning its successful use in Japan and ongoing contracting with major accounts. They believe there is a high unmet need for the product and anticipate it will have a significant impact in the second half of 2025.

The company is experiencing high demand for its FARAPULSE product from physicians, and they are currently going through a contracting process with major health systems. Sales are expected to ramp up significantly in the second half of the year and could potentially expand to 20% of current PCI volume. The company is not disclosing specific numbers for FARAPULSE revenue, but it is going extremely well and expected to contribute significantly to the company's overall revenue.

The company has made significant investments in the supply chain in preparation for current demand, and the supply chain team is performing well. In regards to the AGENT product, it has seen strong growth in Japan and there are plans for indication expansions in the US, with the first potential expansion being for small vessel bifurcation lesions. There is no set timeline for this expansion. The company did not provide much new information on the cadence for FARAPULSE and RHYTHMIA adoption in the US.

FARAPULSE is developing strong capabilities in installing, supporting, and training doctors in the US. They have strong relationships with EPs due to their experience with WATCHMAN and CRM. They are focused on resource planning and training to open new accounts. They anticipate increased orders for RHYTHMIA FARAPULSE mapping in the second half of the year, with potential clinical benefits and productivity gains. The company does not intend to force customers to move away from their existing mapping systems, but they expect enhanced benefits from using their own system. The gross margin was impacted by inventory charges, but the company saw an increased mix of capital in the quarter.

The speaker responds to a question about inventory charges and capital investments, explaining that the charges were higher than usual due to the success of FARAPULSE. They also mention successful launches in their IVUS and Urology businesses. The speaker expresses optimism that the inventory charges will decrease in the future and that their goal is to reach a gross margin of 70.7% for the year. The moderator thanks everyone for joining and provides information for contacting the Investor Relations team.

The operator informs listeners that a recording of the conference will be available in one hour by dialing a specific number and using a replay code. The recording will be available until May 1, 2024 and the conference has now ended. The operator thanks attendees for participating and instructs them to disconnect.

This summary was generated with AI and may contain some inaccuracies.