The paragraph is an introduction to the Boston Scientific Fourth Quarter 2024 Earnings Call. It mentions that the event is being recorded and introduces key participants, including Jon Monson from Investor Relations, CEO Mike Mahoney, CFO Dan Brennan, and Chief Medical Officer Dr. Ken Stein. The paragraph references a press release with financial results and non-GAAP measure reconciliations, available on the company's website. It notes that operational revenue excludes foreign currency impacts, while organic revenue also excludes acquisitions and divestitures, and mentions upcoming acquisitions expected to close in 2025. Forward-looking statements about financial and business performance are highlighted, based on current information.

The paragraph outlines Boston Scientific Corporation's financial performance in 2024, highlighting their exceptional results and growth. They exceeded their financial goals, with significant contributions from innovation, global business unit execution, and the early U.S. approval and adoption of FerraPulse. Fourth quarter operational sales increased by 23%, with organic sales up 20%, surpassing the company's guidance. For the full year, operational sales rose by 18.5%, and organic sales by 16%, exceeding their projected guidance of 15%. Most global business units reportedly grew at or above market rates, showcasing their diverse product portfolio. The adjusted earnings per share (EPS) for the fourth quarter and the full year surpassed expectations, with a full-year growth of 22%. They improved their adjusted operating margin by 70 basis points to 27%, balancing revenue growth with reinvestment for future growth.

The company's 2025 outlook anticipates continued strong financial performance, driven by innovation and global execution. They project organic growth of 14% to 16% and 10% to 12%, with adjusted EPS expected between $2.80 to $2.87, reflecting 12% to 14% growth. In the US, there was 31% growth in Q4 and 21% for the full year 2024. Europe, Middle East, and Africa grew by 12% in Q4 and 14% for the year. They see further growth in 2025, particularly in EP and emerging markets. In Asia Pacific, growth was 12% in Q4 and 16% for the year, led by Japan, China, Australia, and New Zealand, each experiencing double-digit growth. China, in particular, showed strong growth, surpassing $1 billion in revenue. The company is optimistic for mid-teens growth in China in 2025, even amid pricing pressures.

The paragraph provides a performance overview of various business sectors, highlighting significant growth in urology, endoscopy, and neuromodulation for the fourth quarter and the full year. Urology experienced strong operational and organic growth, driven by successful product launches and trials. Endoscopy also showed robust operational and organic growth, led by advancements in endoluminal surgery and single-use imaging, alongside recent approval for an expanded use of the Axios platform in Japan. In neuromodulation, sales grew, with the brain and pain franchises contributing mid to low single-digit growth. Overall, these sectors are positioned for continued growth and integration of new technologies.

The paragraph discusses anticipated growth in various medical device franchises for 2025, highlighting recent FDA and CE Mark approvals for the Cartigia X and HX leads in deep brain stimulation. It mentions strong momentum in the pain franchise, including data showing long-term safety and effectiveness, and notable quarterly and annual sales growth in cardiology, specifically in interventional cardiology and coronary therapies. The acquisition of Bolt Medical is expected to enhance the company’s portfolio in complex PCI imaging and drug-eluting devices. Additionally, the launch of the Acura Prime Valve in Europe and a significant increase in Watchmen sales are underscored as key growth drivers.

The paragraph discusses positive trial data for a stroke risk reduction product following AF ablation, highlighting its superior bleed risk reduction compared to OACs. The Watchmen business is expected to grow by 20% in 2024 due to clinical evidence, patient awareness, and physician training initiatives. Cardiac Rhythm Management sales increased by 3% quarterly, with the diagnostics franchise showing double-digit annual growth, driven by implantable cardiac monitors. Electrophysiology sales surged, primarily due to FerraPulse's success in the AFib market, which is expected to shift towards PFA in 2025. The paragraph also mentions upcoming product launches, including the EMPowered Levios pacemaker and positive feedback on the Fairwave NAV and OPAL mapping system.

The paragraph discusses the company's strategic initiatives and recent achievements. They have enhanced their capabilities in the market through the acquisition of Cortex, focusing on advanced AF mapping solutions. Significant progress is highlighted in clinical trials like ADDvantage AF, with positive results from Phase one showing the FerraPulse system's efficacy and safety in AF patients. Enrollment is nearing completion for the Avantgarde study, evaluating FerraPulse as a first-line persistent AF treatment. Phase two results of ADDvantage AF, focusing on the FerraPoint catheter, aim to support FDA approval by 2025. Purple Interventions reported significant sales growth, particularly in interventional oncology and embolization. They completed enrollment for the FRONTIER trial for glioblastoma treatment and plan to acquire Entera by 2025 to enhance their liver cancer offerings.

The paragraph discusses Boston Scientific Corporation's strong financial performance in 2024. The company reported high single-digit arterial growth, driven by its drug-leaving portfolio, and mid-single-digit venous growth. The silica business and TCAR study results were also highlighted. For Q4 2024, consolidated revenue was $4.561 billion, reflecting a 22.4% growth from the previous year, with operational revenue growth of 23.1% after adjusting for foreign exchange impacts. Organic revenue growth was 19.5%, exceeding forecasts. The adjusted earnings per share for the quarter grew by 26%, surpassing guidance. For the full year, revenue was $16.747 billion, marking 17.6% growth, with an 18.5% operational revenue increase after accounting for exchange rate effects.

The paragraph discusses the company's financial performance and achievements in 2024. Organic revenue growth reached 16.4%, exceeding the guidance of 15%, while adjusted earnings per share grew by 22% to $2.51, surpassing the high end of the expected range. Despite a $0.05 negative impact from foreign exchange rates, the adjusted gross margin improved to 70.6% in Q4, with a full-year margin of 70.3%. The adjusted operating margin for the year improved by 70 basis points to 27.0%, and further expansion is anticipated in 2025. The GAAP operating margin was 14.8% for Q4 and 15.5% for the full year. Adjusted interest and other expenses totaled $301 million for the year. The adjusted tax rate was 11.9% for Q4 and 13.2% for the full year. Finally, the fully diluted weighted average shares outstanding were 1.149 billion shares in Q4, and 1.486 billion shares for the full year.

The article paragraph discusses the company's financial performance and outlook. In the reported quarter, free cash flow was $1.181 billion, while full-year 2024 free cash flow reached $2.648 billion, surpassing expectations with a 71% conversion rate. Looking ahead to 2025, they anticipate a free cash flow exceeding $3 billion and plan for strategic mergers and acquisitions followed by share repurchases. As of December 31, 2024, they had $414 million in cash and a gross debt leverage ratio of 2.2 times, with a legal reserve of $326 million. Revenue growth for 2025 is projected at 12.5% to 14.5%, with operational growth of 13.5% to 15.5% when excluding a headwind from foreign exchange. Organic growth is estimated at 10% to 12%, with first-quarter revenue growth expected between 17% and 19%. Jonathan Monson notes that the fourth quarter of 2024 had an extra business day, contributing an additional 200 basis points to growth.

In the first quarter of 2025, the company expects one fewer business day impacting revenue by about 200 basis points. Adjusted for business days, the high end of Q1 2025's guidance aligns with Q4 2024's organic revenue growth. They forecast full-year 2025 adjusted expenses at around $425 million and an operational tax rate of 13.5%, with an adjusted tax rate of 12.5% largely due to stock compensation benefits in Q1. Full-year adjusted earnings per share (EPS) are projected to grow 12% to 14%, reaching $2.80 to $2.87, with Q1 EPS between $0.66 and $0.68. Minimal impact is expected from tariffs due to limited operations in Mexico, Canada, or China. Overall, the 2025 guidance anticipates 10% to 12% organic revenue growth and adjusted EPS growth of 12% to 14%. More details are available on their Investor Relations website.

In the paragraph, Jonathan Monson introduces a Q&A session, asking participants to limit their questions to one each to accommodate as many inquiries as possible. The operator provides instructions on how to participate. Robert Marcus from JPMorgan asks about the strong fourth quarter results for PFA (FerraPulse) and Watchmen products, particularly following new reimbursement rules and the option trial results from October. Daniel Brennan responds, expressing strong momentum and increased growth for these products, noting the positive impact of the recent reimbursement news on Watchmen sales. He highlights the expected market growth (20% CAGR) for 2025 and anticipates the option trial results in early 2026, indicating that the company is well-positioned with the Watchmen product.

The article discusses the significant growth and success of the FerraPulse product within the MedTech industry, noting its rapid market impact and robust execution in commercial and supply chain operations. The company anticipates maintaining a strong competitive position in 2025 and strives to be a leader in Pulse Field Ablation (PFA). During a call, Lawrence Biegelsen from Wells Fargo inquires about Boston Scientific Corporation's long-term growth prospects, referencing an increased market growth estimate of 9% by 2026, and asks if the company can achieve double-digit EPS growth next year despite a rising tax rate. However, Michael Mahoney, a representative, states they are not providing specific guidance beyond 2025.

The paragraph discusses the company's strategy of outgrowing its end markets by pursuing internal investments and strategic acquisitions, aiming for a 9% growth by 2026. Despite potential changes in the tax rate, the goal is to achieve double the GDP growth. The conversation includes a question from Frederick Wise about the company's conservative approach at the start of the year and how competition in the PFA sector might affect guidance. Michael Mahoney emphasizes the company's track record of meeting commitments and maintaining a thoughtful, prudent strategy with momentum and tailwinds as they plan for 2025.

The paragraph highlights the company's strong growth momentum across various regions and business sectors, such as the FairPulse in the U.S. and early launches in Japan and China. It acknowledges the potential challenges posed by stronger competition and extensive cost pressures in certain markets like China, as well as lower-cost competitors in Asia and Europe affecting their business segments. Despite these challenges, the company is optimistic about having more favorable conditions overall. The discussion shifts to a Q&A session where Joanne Wuensch from Citibank asks about margin management and cash flow investment strategies. Daniel Brennan responds positively about their approach to operating margin expansion over the past decade.

The paragraph discusses an optimal strategy for increasing operating margins by improving gross margins, leveraging SG&A (Selling, General and Administrative Expenses) with anticipated sales growth, and slightly increasing R&D spending to fuel long-term growth. The target is a 25% margin expansion, supported by strong cash flow management resulting in a 71% free cash flow conversion. The company's capital allocation strategy remains focused on high-quality, innovative M&A, followed by annual share repurchases. They maintain a strong position with a manageable debt level post-recent acquisitions. The paragraph ends with a mention of positive developments in the EP business, specifically regarding the FerraPulse product's success in converting the de novo paroxysmal segment.

The paragraph discusses the company's strategy and market opportunities regarding FerraPoint and its persistent indication expected by 2026. The company plans to maintain an open platform, allowing the use of other mapping systems alongside its OPAL mapping system. This strategy aims to support global business evolution and potential entry into ASC environments. Although early in the launch of Fairwave Nav and Fairview in the US, initial feedback has been positive. The persistent atrial fibrillation market is highlighted as a significant opportunity, with its prevalence being at least as large as that of paroxysmal atrial fibrillation. The company also observes off-label use of FerraPulse for treating persistent atrial fibrillation.

The paragraph discusses the strategic focus and future plans of a company, likely Boston Scientific Corporation. It highlights the importance of clinical trials like VANTAGE, Avant Garde, and ADVANTAGE in proving the safety and efficacy of treatments for atrial fibrillation and getting new labels by the year's end. The company aims to expand its labeling and explore adjunct treatments with FerraPoint and move Avant Garde to first-line therapy. Travis Steed from Bank of America inquires about the company's merger and acquisition (M&A) strategy given its rapid revenue growth. Michael Mahoney responds by emphasizing that the M&A strategy remains consistent, focusing on long-term investments, organic growth, and their extensive venture capital (VC) portfolio, with continued investments expected through 2030.

The paragraph discusses the company's strategy for growth, focusing on increasing their WAMGR (weighted average market growth rate) through internal R&D, VC portfolio, and tuck-in acquisitions. It highlights efforts to enhance the company's value year by year, aiming for differentiation by 2030. During a Q&A with Patrick Wood from Morgan Stanley, the company mentions the endoscopy business and its investment in the Apollo ESG product. They have dedicated resources and clinical trials to expand its indications and improve clinical science, seeing it as a long-term growth driver for their Endoscopy division, though not transformative for the company by 2025.

The paragraph discusses Boston Scientific Corporation's strategic focus for improvement and growth in the coming years. While acknowledging strong performance in key areas like FerraPulse and Watchmen, CEO Michael Mahoney identifies neuromodulation (Neuromod) and the U.S. cardiac rhythm management (CRM) business as areas with potential for growth. He anticipates improvements in Neuromod with the launch of their DBS platform in 2025 and a refocused commercial team. Additionally, they aim to strengthen their CRM business by introducing a Leadless pacemaker in the latter half of 2025 to address current market challenges and increase their share.

The discussion centers around the business's focus on improving competitiveness and efficiency, with specific mentions of challenges from low-cost competitors and strategies to lower costs. Danielle Antalffy and analysts Michael Polark and Vijay Kumar ask questions related to the company's TAVR (Transcatheter Aortic Valve Replacement) franchise and its growth. Michael Mahoney explains there's no new update for the U.S. market but mentions ongoing internal and authoritative discussions. He notes strong performance in Europe despite challenges and mentions launching Prime for existing Accurate users. Vijay Kumar's question shifts to PFA (Pulsed Field Ablation) mapping technology, seeking insights on its usage and market share expectations for Boston Scientific. Mahoney emphasizes an open platform strategy, and Kenneth may provide further comments on it.

The paragraph discusses the use of mapping systems in medical procedures, highlighting the geographical differences in their adoption. In the U.S., mapping is commonly used, especially in complex cases, while Europe often performs procedures without it. Japan and China also heavily utilize mapping. The OPAL platform is promoted as an optimal tool for using FerraPulse catheters, although support for competitive mapping systems remains. The company aims to simplify procedures for physicians, investing in technology and clinical mappers to improve workflow efficiency, especially for complex atrial fibrillation cases. The integration of Cortex's AF mapping capabilities via FerraVu on OPAL is also mentioned as a strategic advantage.

The paragraph discusses the impact of reimbursement cuts in China and Japan on business growth. Despite these cuts, which are accounted for in the company's guidance, both markets are expected to perform well due to strong product launches, particularly FerraPulse, and portfolio diversification. The company's strategy focuses on providing a wide range of tools for physicians, which aids in their growth. Even with the price cuts, the company anticipates an increase in operating margins in both countries.

In a conference call, Joshua Jennings from TD Cowen asks Michael Mahoney of Boston Scientific about potential risks to the medical devices sector and the company specifically with the new administration's policy decisions. Mahoney suggests that while the environment is dynamic, the company's guidance accounts for macro challenges like tariffs, which he finds manageable. He notes that the FTC environment might be favorable and that tax reform remains uncertain, but generally, Med Tech has not been heavily impacted by major policy changes under various presidencies. Christopher Pasquale from Cefran Research then inquires about the impact of concomitant procedures on LA market growth, mentioning feedback from High Line Center indicating a possible increase in procedures. Mahoney indicates that the impact on volume will become clearer over time.

The paragraph discusses the growth and strategic positioning of MedTech products, particularly focusing on a 20% market CAGR and the promising role of technologies like Watchman and FerraPulse in the sector. The company aims to enhance productivity and workflow in cath labs, addressing customer demands and ensuring operational efficiency. Watchman is highlighted for being as effective as oral anticoagulants, with no additional risk when used alongside AF ablation, and FerraPulse is praised for its safety and efficiency in facilitating concomitant procedures. The company seeks to expand the use of Watchman as a first-line therapy, backed by positive trial results.

In the article paragraph, it's mentioned that CHAMPION data will be presented next year, focusing on patients who aren't candidates for AF ablation. Currently, many patients undergoing ablation in the U.S. are at high risk of stroke. The CHAS VAST score is used to assess risk, with a score of three or higher indicating a high risk, affecting about half of ablated patients. There are also discussions about the WATCHMAN procedure for patients undergoing ablation. Christopher Pasquale notes the benefits of the FerraPulse system in avoiding multiple procedures and its advantages for both patients and medical staff. Lastly, Marie Thibault from BTIG asks about the company's recent acquisition and its impact on the interventional oncology and embolization segment. Michael Mahoney highlights the strong performance in this division and its contribution to the company's leadership strategy across business units.

The paragraph discusses the successful launch of an organic R&D program in the robotics portfolio for Boston Scientific Corporation, which, along with the successful Y90 product, positions the company for growth. This expanded portfolio aims to capture market share and establish closer partnerships in interventional oncology, particularly with oncologists, through their pump portfolio. Additionally, there are plans for software enhancements to improve Y90's efficiency by 2025. The paragraph concludes with Jonathan Monson expressing gratitude for attendees' interest and providing details for accessing a replay of the presentation.

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