Boston Scientific (BSX) 3 Feb 212020 Q4 Earnings call transcript

Good morning. And welcome to the Boston Scientific Fourth Quarter 2020 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. to Investor conference Relations. like Lisa, to, now President, Vice would turn over the Susan I Please ahead. go

the Thank measures you, Mike QX announcing Andrew. Executive issued joining reconciliations Chief us. a Good included Officer; XXXX Vice morning, used everyone, me Executive the release. earlier Financial of today’s results, and President on press and which call Officer. Dan release our are and Mahoney, in Chief and With Chairman non-GAAP Brennan, thanks We for morning, this

of We today’s posted that section his comments as year we'll catalysts the future including hour. inclusive and QX have this questions. XXXX regarding the copy a release performance, of our COVID-XX of call then QX and non-GAAP QX guidance, on guidance. Relations Duration under and our financials fiscal morning's well of one the more your Mike of the will heading details the will measures XXXX as Filings. and the Dan approximately Financials for of Investor call the impact focus well reconciliations our website pandemic, used review for business and & as as in take to fiscal be provide the outlook quarter, will

Mike session, Ian Chief Medical Meredith be and Officers, Q&A today's joined During Dr. Stein. and will Dan by our Dr. Ken

the and prior difference revenue selling On the specified net daily fluctuation, portfolio including BTG Preventice Intrauterine X organic there on call, for as the operational acquisitions, no otherwise period a recently sales revenue call, June and and everyone excludes business. excludes of all the of microspheres as sales the to days Pharmaceutical excludes BTG Before of are in sales, XXth, acquisition Guidance Health this begin, through revenue, that to organic. embolic impact foreign and like unless related normalizes as Franchise. an the through well we currency remind I'd growth of divestiture the April references are sales announced Specialty divestitures Vertiflex the August and certain further assumes year-over-year. global Average impact

that growth approvals for most Factors X% the call flow as represent savings earnings, speak At comparisons expected expenses. subsequent our which turn performance, by meaning to Of R&D and excluding Finally, between COVID-XX we our These note, well words growth including use, trials, impacted Mike spend with results words. X%, They XX-K his of any such obligation may laws, among time market other by about in margins forward-looking in pandemic. and Risk and of differences the include XX-Qs filed similar the clinical rates, and of not pandemic this and statements cost are cause recent product and cash section those described other statements update sales, and materially date, growth within results, as believe, and and things, operations impact expect, launches, like anticipate, comments. it tax financial over only our the which our SEC. this goals as of disclaim be opportunities, the upon our or them. I'll other today's point, periods, to and intention the Factors statements securities estimate COVID-XX contains federal may company's of the financial identified new share, COVID, to include,

us Thanks Susie. you, for today. Thank joining

keeping serve the patients, team how we're while very finish challenging XXXX, our able to responded and BSC proud has a up leveraging this As growth, strengthening to growth leadership XXXX ongoing positions, and pipeline about by excited and beyond safe into challenges employees portfolio and we and to higher year's return how and of innovative into I'm expansion our the category of We're supported in expect digital our capabilities. markets. the outlook

We are strengthened portfolio the given our our the and diversified headwinds global of a and emerge to in well-positioned position innovative team. from pandemic

November on pre-announced we impact the reserve to particular. sales, January this our basis COVID-XX declined on a the WATCHMAN double related sales US. the to declined down from Organic as consignment the device the in Europe single excluding consignment, grew sales single XXX digits low pandemic October, XXXX model QX in our of of As low return basis, the digits X% for points digits XXth, US impact low WATCHMAN negative in December, in in which an and included then conversion in FLX organic intensified inventory next-generation and

largely were X% sales ‘XX which impact quarter results from point basis results, third included Our consignment. a fourth consistent XXX with declined our quarter which organically, WATCHMAN

full organic $X.XX of WATCHMAN and consignment adjusted related of and discontinuation. EPS respectively, the sales both operating and announced and charges, impact the basis year from declined Today, adjusted which declined we to XX.X% XXX margin X.X% sales $X.XX, basis also XX.X%, XXX XXXX, WATCHMAN. For includes LOTUS of QX approximately points point Edge which include operational of

impact for Importantly, WATCHMAN not year the COVID we Adjusted despite year impact with reflecting expect of $X.X cash procedure COVID, reduced impact in free material adjusted with charges as well due as operating WATCHMAN $X XXXX do to XXXX. at the the of free full was to in cash or to $X.XX, volume billion. consignment the strong and shift the flow at margin Full flow LOTUS flow billion from XX.X%, cash related any LOTUS. was consignment adjusted EPS

our XXXX, markets, year clearly outlier We a category negative thanks growth adjacencies. of diversification into delivering portfolio financials track to we XXXX believe of Our X to high record to in results will return results. excellent key pre-pandemic strategy our are leadership strong in

to improve and and healthy excited plans our We in to on ex-COVID against confident page X% expansion build drive for towards sales with global operating to goals continue growth EPS momentum beyond. double-digit flow. ability our X% deploy our XXXX to margin cash turn and financial plan execute to our strategic free objectives organic We're adjusted XXXX growth, in the and in

QX the quarter, return first our year, based reflect full reinstating improvement is on in to assumptions in XXXX which more are second COVID in guidance ‘XX. meaningful and underlying procedure and normal assumptions. quarter a pandemic impact We half impact levels second These ongoing an for from

also business. guidance XX% Spec the of recently the of targeting acquisitions will BTG Dan XXXX, and give XXXX and organic to versus more We're divestitures, to X% Pharma an divestiture the Preventice excludes growth X XX% and excluding acquisition and assumes details. announced up both April Our revenue impact flat versus XXXX, of

the $X.XX. of Given year full we organic $X.XX see we're and waning expect course EPS the of expected to to revenue impact the over to of year, guiding COVID-XX, accelerate adjusted

in be due challenging impact the to of sales ‘XX, COVID. trends January to QX, continued For

However, throughout sales access COVID trends QX anticipate stabilize trends our we that vaccine will and improves. improve as

quarter impact adjusted first in X% up of $X.XX our revenue $X.XX. XXXX of of As X% ���XX with along a on brief XXXX, thoughts organic to to and a both results, versus XXXX acquisitions, now and excluding result, versus with down QX flat forecast range EPS to the highlights down we ‘XX I'll X% some of provide outlook.

versus I'll normalizing LithoVue, the double-digits on down our X% Public our China China QX, commentary reserves. units. a now QX Health and on year sales market XXX sales of impact emerging So in provide these SpaceOAR is And also and IC X% - of urology, to expect the for returning strength across under inclusive the XXXX sales Asia SpaceOAR divestiture. crossed had Full health, In down with X%, XX% point return Europe, WATCHMAN sales and and in endoscopy, is operationally. tender the portfolio which the Health Hydrogel, East, based back notable Full PI, prevention. complex both recently infection the cumulatively. full-year structural CT visible declined Outside imaging, XXX,XXX grew organic XX% point sales the with results from also XXXX. Pac basis, of in by imaging in Africa threshold QX include on and growth and double-digit that in this sales in pelvic recovery X% an patients operational Rezūm. down year helped and grew basis strength of revenue QX, in the XXXX, were Intrauterine X%, regions negative XXXX. coronary, Urology diversification treating some our business from X% representing declined impact, emerging approximately was franchises, Middle we given broad growth of growth quarter, and impact, was stents excellent Operationally, launched LithoVue and now and China an heart, X%. a basis sales drug-eluting X% led X%. continued regionally, sales DES US grew additional drive north mix for China China franchise momentum for We declined

has to during expect and be we short-term D on bullish feedback, continues the throughout do Unfortunately, pandemic runway, a Our headwind our the to COVID-XX XXXX but multi-year EXALT made launch account systems We of driving to EXALT build has adoption D - global in and D challenging. a restrictions hospital more momentum access. D EXALT significant EXALT remain base. strong physician have received continue expand COVID

ORISE soon as have build in XXXX. XXXX, of as overall in pass-through performance stand-alone clinical we EXALT of very XX%. the continues of pacemaker, portfolio. half pacing year to ProKnife, go In SpyGlass declined modular to also similar which recently encouraged high the complements bronchoscope antitachycardia beginning for with and uptake endoluminal will continue leadless in sales EMBLEM payment and We're We our surgery also ATP, sales provide transitional by launch X%, both evidence a continue the In Cardiac enrollment of launched CRM. Full second target Discover S-ICD to for our pleased setting. low-voltage QX D dual-track Management, high-growth our well body to outpatient single-use anticipate to patients. study of Rhythm a we declined to clinical launch The are to well, and the

for business work. low leadless business, times the significant increasing size high-voltage EMBLEM driver this is to nearly Our voltage S-ICD access three populations pacemaker for our appropriate patient a is so of now

BSC performance our given monitoring. recent monitor excited diagnostics. XX% $XXX about arrhythmia million We're of ambulatory an covers to excellent in ECG modalities to our implantable cardiac and high-quality also is XXXX streamlined a off for the that all Importantly, strong position which field BodyGuardian of algorithms, portfolio back-end detection of cardiac grew its signals, by Preventice acquisition a core ECG best-in-class launch, LUX-Dx MINI with broad Solutions, establishes in algorithm and monitoring offering

sequentially duration. revenue including QX launch. deal in in catheter in of Europe, positive second-generation Neuromodulation, patient Cryoablation did the with and spinal cord full was novel DIRECTSENSE, of of launch and In single-shot from are to attractive procedure in Forceps use XX% feedback year. catheter POLARx in the X% and STABLEPOINT, recently the the XX%. full ‘XX, was across down physicians we'll which our December, EU as In year expect therapies, implantable down declined The due ease begin QX, after we full for sales neuromod were in and is the ablative Electrophysiology QX HeartLogic, implantable all noting a diagnostic primarily positioned COVID physician commercial well fourth POLARx, due and be organic cardiac also therapies. receiving to to therapeutic quarter We uniquely and early approved the rate close decline as mid but high XX%, AECG and grew December and while Japan stimulation LUX-Dx, cancellations November by [ph] sales were monitor, surge.

at patients. to identify, WaveWriter fast We procedures capability Software pleased by these expect contour to are MRI waveforms last Alpha be the month. Solutions NANS and next-generation physician's our Alpha have offers paraesthesia-free and the that with and supported enhance manage to SCS Cognita ability rescheduled our of system maintain launched SCS majority

of recently MRI between physician which Vercise approval communication the the received the rechargeable remote segments, patient our and both Bluetooth our in Genus also capabilities We non-rechargeable US expands with implant, and the programmer. platform,

QX growth recovery Cardiology. WATCHMAN in XXX declined Full WATCHMAN includes X,XXX same the to items. a Interventional that consignment consignment. China the WATCHMAN reserve. IC to related related organically, impact year transition impact with franchise XX% to XX% an basis the accelerated but and sales approximate were sales Turning the impact of to tender excluding negative point QX basis including its The the XX%, down point reserve for

in well shift in conversion with consignment feedback Our safety US launch and expected the extremely physician of device for we concluded, indication performance a also to conversion the than to has WATCHMAN not mid to WATCHMAN a gone has invest in positive model. of FLX XXXX. and program rate higher to by FLX. complete This and expand FLX We're shift trials target continuing clinical patient

mix Therapies, of Coronary PCI end. complete our our to trial of each and to expect OPTION innovation sales We improve Within year via enrollment we by growth franchise. complex the continue year the

such be in And the standpoint, continues we of a MEGATRON as stents company from newly differentiate the SYNERGY US. sales launches, continue drug-eluting with pricing XD a total now DES to challenge well X% as XX-millimeter, approved new as Although represents to XXXX. product and in

products complex NextGen Our portfolio with driver growth COMET Rotor Pro. such PCI and is as new and an AVVIGO important

We TAVR, ease hemodynamics. in global franchise ACURATE larger very and be low Europe, In than given use, of our XXXX. PCI its performing to rates DES and PVL of well in expect Imaging pacemaker excellent neoX is rates and best-in-class XX%

QX reflect of cadence IDE of an for We medicine and later and from organic a was the embolism. the new Millipede, portfolio product XX% study penetration continue Full this market begin business patients acuity And enrollment. and in to growth declined Ring functional in mix mitral regurgitation. the Transcatheter sales high reimbursement US year, grew PI as overall well launches. US an and for with led mitral focus an early EKOS sales Interventions, broad which QX X%, a pulmonary on the as by into in acceleration In neoX and console, Annuloplasty teens System BTG new in grew new year high a category-leading Peripheral we'll X%, Interventional quarter, feasibility

DCB Company to evidence of highlight breadth interventional Jones accomplishments I'd embolism long-term our EKOS are sustainability system, HI-PEITHO with in to in data quarter, additional add Sustainability XXXX head-to-head sustainable, of devices. We have reflection XXXX. for in to continues to important global inclusion $XXX These and study market commitment this our US briefly no our like the Eluvia. mortality Responsible we the the to and Arterial, list. uptake In the saw anticipation clinical first to as social and Newsweek's the environmental recognitions the continue our paclitaxel therapy of Index the exceed as risk drug-eluting NTAP anticoagulation. our launched gratifying to of and for trial, Dow compared portfolio of show standard economic, Ranger mid-XXs expect grew to And associated And best-in-class pulmonary to America's will continue cover portfolio sets with research million Most also two a we practices. drug-eluting

beyond. to COVID-XX our diminishing impact execute So significantly multiple The overall, very acuity we're nature XXXX BSE and of help optimistic product high for on well all launches outlook and should a in improve portfolio, and the ‘XX. pandemic the from performance

which high We will continue and our to markets in Preventice sheet execute portfolio, market multiple develop our category leadership continue strategy long-term and the add diversify high platform, enable opportunities. like to the growth acquisition, is portfolio example deal growth which balance This diagnostics strength exciting to latest expected excellent prospects. venture to of into is compelling growth the with

excellent In go product forward. and to in the health to also our positions economics multiple addition, us work led XXXX care approvals of reimbursement reg That wins. and well teams

goals cash finally, live financial practices. ex-COVID adjusted X% double-digit and revenue I'm turn towards commitment spirit. over growth drive to now to for drive flow our enduring for things I'll winning And organic EPS. and with and to margin expansion strong Dan. sustainable we And employees values to to business their continue continue grateful We to to our X%

foreign in from Fourth basis, revenue million Mike. billion, the X.X% reported declined reflects $X.XX represents of revenue and consolidated exchange. tailwind a $XX Thanks, operational a an decline quarter of revenue X.X% On quarter.

declined model conversion point reserve Excluding the a and for divestiture a consignment FLX created discontinuation Appendage substantially mid to Intrauterine million, our the $XXX which sales Franchise, the $XX headwind quarter. device includes States, Closure from return in the organic related to in or the inventory basis Franchise of headwind [ph] a our of impact our XXX The Edge Left Health of revenue complete. the LOTUS launch next-generation now quarter United of is our WATCHMAN with Atrial million a X%

well pandemic of increased November. return these flat of LOTUS our the As reserve, October Mike charges. the to consignment impact QX to trending inventory a from earnings impact after discontinuation related includes detailed, was $X.XX from the XXXX COVID-XX WATCHMAN negative consistent through as results, Edge, quarter largely the as with impact results adjusted $X.XX are in revenue and per sales December primarily as share of negative a third $X.XX

XXXX billion portfolio an divestiture year basis legacy on basis full and of X.X% and embolic Vertiflex of X.X% beads declined the Health operational on of revenue consolidated the which Intrauterine Our of reported $X.XXX is XXX includes to related net and our BTG a basis, franchise. points acquisitions and

point Excluding this sales to including transition net WATCHMAN from contribution, the a organic basis XX.X%, XXX declined consignment. headwind

the XXXX the WATCHMAN resulting $X.XX adjusted inventory charges to demand Edge inventory to share earnings gross from the benefit. net several including the due the include full-year lower LOTUS of partially addition negative related a the XXX charges, charges. quarter to challenges This consignment, line impact to offset to Adjusted COVID-XX onset related to basis XX.X%, from is pandemic. related pandemic, In of top of transition inventory charges fourth margin point $X.XX per by Edge a was LOTUS $X.XX and $X.XX $X.XX for tax

these a inventory the and QX transition margin adjusted WATCHMAN our margin impact XX.X% equal despite gross QX inline of charges, consignment. Excluding was to gross from adjusted larger with expectations to

production to levels XXXX levels. to volumes QX to be negative which not of levels although QX Looking still of normal in at historical similar back means XXXX, we manufacturing forward, relatively yet expect with variances, more

consignment Edge. basis the XXXX. was we impact adjusted of transition and excluding XX.X%, the result, related margin goodwill $XXX materially manufacturing basis a to Pharmaceuticals, margin XXX related work million expect sheet quarter negative $XX a on balance additional and WATCHMAN lagging of related discontinuation sale XXX was in operating capitalized point operating the the in litigation point first Specialty to of Edge basis, or $XX LOTUS the of million to GAAP to expenses. within On Fourth XX.X% to the unfavorable impairment related As variances, through and related of announced the X.X% discontinuation LOTUS includes charges headwind a a headwind million an half a

interest the A expense expectations to interest the cost pay early $XXX full and line of totaled other adjusted resulting Moving make-whole the investments in gain other quarter. in of offset million, portion GAAP from based a of line. results of our of was year. on the by investment down gain below May Adjusted bonds The at our and million, and than with results. XX for in fourth $XXX Pulmonx is in included more on adjusted the million expense in $XXX our call beginning year a excluded separate

tax quarter was on X.X% Our and basis fourth GAAP an rate the on adjusted basis. XX.X% for a

in $XXX favorable $XXX tax Our recognized the billion during non-cash and less with cash pandemic, expenditures. adjusted is free items years the billion, million billion $XXX with a basis compensation from free million full $X.X basis an XXXX net was basis, operating basis of year expenditures. our year free points of the solid less million flow operational to benefit Adjusted in from flow benefit XXXX in Despite the we million, was of the of most for XXX examination million minus activities, adjusted flow year, $XXX less flow million generated an driven to quarter XXX on with X.X% very $XXX tax benefit $X.X position the XXXX capital on IRS our which reserves. of cash line compared operating net of rate capital from X.X% free was activities, comprised discrete cash was $XX full of cash and $X and a rate from points GAAP XX.X%, stock of and by an completion significant which QX

of accounts with exceed adjusted XXXX, aim to For cash volumes. and flow meet or XXXX to as free receivable increasing we return more normalized we inventory headwinds

credit cash As had on available billion. $X.X $X.X of December facilities XXst, of and billion XXXX, we hand liquidity, total of including

remains Our capital tuck-in top M&A. priority for deployment

additional opportunistic our of within business remain opportunities, we advantage while development have repurchase and to active did in take We to as continuing venture pursue share portfolio, December. capital capacity

to to of reserves, in bonds. and paid booked of legal expected additional United litigation in the $XX The mesh legal $XXX the the some we in which half our million total to including With respect roughly During divestiture early fees repurchased to we the QX of our Pharmaceuticals, our million XXXX. first reserve, is equivalent and shares outside true-up $XXX States. May Specialty of close million proceeds quarter, the is XXXX expected

of is US total legal the change during of international years. one-time Materially, included, mesh of fully December reserve, XXXX, claims, material claims. But coalition reserve. our claims made have over in settlement we or to X all fee the Our estimable final incorporated a to work the was million we as resolve claims $XXX State of Attorneys been to claims settled by which been There and is General adjustments and outlook no mesh XXXX. US last legal XXst, global continue mesh to stages

nature to year of courts, the COVID-related XXXX. resolution full resolving for full global QX given However, and the the expect now and final delays walk guidance given through claims XXXX. I'll XXXX lag we in into

volumes. based level for top to As XXXX, is provide the trend, cost will will as QX XXXX account trying in guidance end. impact to normal flexibility assumptions as return largely COVID-specific With of while of XXXX be and pandemic QX in will insight to we're half implemented our COVID widening our the line QX guidance in for degree relatively the procedural of range wider year still XXXX drive high variability, that this spending some levels, Mike second and range XXXX to containment stated, the were results direction. Likewise, that our into improve measures EPS guidance of allow QX to concluded similar on

spending the investments we to to on to ready are are prudently, ensure a post-COVID continue capitalize will necessary making in world. we manage We but momentum

have and April of the assumes half XXXX including the divestiture not for XXXX, Solutions. not include of acquisitions midpoint first guidance that expectations Preventice Specialty yet closes Xst, Pharmaceuticals Our does assumptions closed,

excludes Specialty LOTUS XXXX growth to portfolio of to exclude sales Intrauterine This sales. range BTG, a be the This of divested organic headwind full Intrauterine WATCHMAN XXXX basis businesses, XXXX. $XXX sales projected full tailwind close. and from beads, Edge a of million headwind $XX calculation XXXX, to businesses, excludes year, our post and sales guidance Pharmaceuticals. Vertiflex from excludes XXXX sales million in the XX% of through were our LOTUS X% million Specialty sales. the So a XX% Pharmaceutical in guidance, return approximately Pharmaceutical versus and divestiture $XX basis sales in we revenue embolic XXXX Intrauterine embolic impact excluding Medicines of in Edge that XX-months divestitures expect as as mid-point sales acquired prior exchange, and XXXX in as Specialty includes through million million well from Pharmaceuticals of Therefore, of year This and Vertiflex of of Health at as and booked reserves X% to XXXX Health versus Interventional million tailwind XXXX, And as the for XXX Franchise sales sales exclude acquisitions a sales well beads million Health Specialty mid-August, represents $XX and points growth foreign $XX May of of as March. point from XXX the $XXX and well and and Franchise, in XXXX includes BTG revenue $XX through

guidance from XXXX QX and be minus a to Edge X% revenue XXXX, sales expect LOTUS a $XX we For million including QX X% plus versus XXXX, range to the XXX of headwind of basis a growth organic excluding well of in from of exchange, versus our divestiture from Health divestitures. point the basis Franchise. and down as X% foreign XX represents points acquisitions tailwind impact Intrauterine to flat excluding This XXXX, as

Franchise. exclude beads XXXX in For million of sales. in million the calculation, $XXX our as sales as and Specialty Interventional Medicines, XXXX approximately and at sales embolic $XX BTG Intrauterine guidance, portfolio Health Vertiflex of sales mid-point of well million exclude this Pharmaceutical $XX And sales

level In XX.X%. full-year margin, be second the XXXX and below terms of QX exceeding adjusted at or of we to XXXX We XXXX, to of operating operational half quarter. forecast the QX accounting stock to our to this XXXX tax primarily for the be benefit improve as year benefit with full rate XX%, XXXX first be and adjusted the is within approximately from minimal standard recognized compensation, expect

below We with portfolio payments, to capital our the which $XXX to associated our interest for the approximately costs hedging expect program dilution million and adjusted line venture year. be $XXX include million from expenses,

of and XXXX. weighted approximately fully for XXXX, diluted X.XXX X.XXX QX billion a diluted for weighted count billion expect year shares fully shares - share full We average

turn We and adjusted moderate in range Q&A. Investor results. more of website expect compared Susie, earned be for includes a financial highlights, to XXXX. QX QX earnings per of that, it the XXXX which who for QX $X.XX full in operational be and will share excludes of to first and Specialty to which to Pharmaceuticals our I'll XXXX the earnings Pharmaceuticals share $X.XX the $X.XX to range in back for quarter Please check Relations Specialty outlines to detailed from QX $X.XX, a And with year approximately $X.XX, to $X.XX adjusted per

to to please as or XX enable Dan. Andrew, ahead. let's one the as related one for go minutes questions please to it Thanks, take follow-up. many yourself question questions limit and Andrew, so. next order to open possible, up In us

you. Thank

comes begin question We America. Please The [Operator will Instructions] Bank from now Hopkins the Bob question-and-answer of first go... session. of

Great. Thanks and good morning.

Good morning.

morning. Good

So, period. X% I the a to same to to think picture others, we're above some premium is growing obviously, from Mike, for big you're historically, actually And med-tech And question. peers. I revenue time to is, us XXXX. organic X% you start, not it's said and to what that ask growth hearing Boston X% that over below X% have guided are used just a wanted guide investors to XXXX giving if today Because okay, with

again a mind? look that better you. when So in than Boston now do show of to you think event XXXX did peers? more once start revenue your can Is your Thank

Sure. Thanks, Bob.

we know, years multiple a in had grew you excluding COVID. than think And row. as faster pre-COVID, in for I XXXX group peer believe, we've we So challenge our with - obviously

the COVID group, we half - to. out diminishes, impact year, second the we we to see then than roll business second grow towards as faster go the wanes our and of normal, peer like more becomes will COVID So we used the as and vaccines eventually, as as the just

and COVID impacted, that's diminish XXXX, So in out expect second year. we healthy vaccines as quarter, the half XX second quite patient demand bit of roll period the months seeing we're and in some of during very going impact And first a impacted the where we're impact quarter. to increases, a and in we're think we

do is guidance X% ‘XX we expect the of a environment. So over clearly not what normal X% to in COVID-free

the if of and reflects second really half, QX really QX vaccine impact past, depends, to maybe better, what in QX. done not it year in But getting consistent with some for the half depends will in impact back impact in we've COVID given it portfolio. out above lays It the COVID the and the happens the a at-market, So rollout. on the market of strength growth of first what to, be

just Okay. S-ICD pieces - a negative for last there's question, And want and of, Thank a week, product frankly, I just couple been news you did Preventice. in on of I because sort the that. to of, ask related

And decision XX%, then business And I'm is XX% thoughts Preventice, on business fixed? you. just some reversed? is if that can reimbursement so, isn't that. keep And Would a curious, S-ICD? Novitas love the on And growing how big problem thank

Sure. take commentary. turn one a Bob, minute for and then I'll Stein in over the Dr. S-ICD to the Preventice it

very we're this on about acquisition. Preventice, So excited

Implantable long-term term besides piece, reimbursement grew over we'll grew offer know, portfolio our event diagnostic add broadest about million the we there's the you a the it too. you as And monitoring, in Cardiac with growth. XX% The and Recorder. - Holter also MCOT, also know, business that Loop - $XXX or XXXX, they As Holter, short talk business,

So their suite situation of we we I to group that look call it the with peer most fast And portfolio represents, you obviously And have is know, important. full the market. XX% if at there, our sales. comprehensive you that versus Preventice, And reimbursement would of a growing Holter believe it's diagnostic very products. importantly, segment call fluid. It XX% long-term the

long-term amount I Holter. what's of to of We additional reimbursement don't with Preventice and out Boston work in think results future. be the will the and of to terms the And is we'll think that expect mix is unique consistent that reimbursement labor clinical But effectiveness the reimbursement. plays current see fluid. so, level see we in I position portfolio. And where the But that for meetings near required and think

these So have market future, well was although long term was May, we on of the growing modalities, over switch including given in able the from XX% and reimbursement, the over others. uniqueness in Holter Holter, device, across MCOT depending also the of fastest they short-term growing other Holter what happens in product have. the software And to modalities, mix long-term with a the four the the they're XX% their

the three So of helpful. the is in categories mix actually I the reimbursement The products other improved. is think slightly

aspect few across diagnostics. And so move nice There to with the discussions patients Holter, term think will in The in I long a future. flexibility that think be seamlessly and improved that a on quite we headwind continuum have areas. of the some is reimbursements there obviously I

the of healthy. will comfortable mix think given for acquisition happy that we're it grow that products benefit very quite BSC, and with the I and So

I'll of that In question. Stein, you to turn over in of Dr. terms that S-ICD, terms

classification recognizes the detect the as impact the it's the S-ICD then to see tell classification just The on only can important I overall, been lot, the seeing. Yeah. the market of issue offers. were to I'd are referring those emphasize actually Mike. you're we defibrillation better transvenous to patients. advisory that patients in we a because harm. the why is for based The that Bob. FDA's a still really think actually FDA that It listening. system. expected. how the we suites provide they the this what The think we remain the with case, is And that the did And the performance you, remain electrode, available agreed right? unique FDA of frankly, best as because should to how that is this the So and limited. follow heart without particular were I advisory regarding regulators determination recent the the only better market able if community ICD rate the FDA rates not a critical that's benefits X.X% the part this on who's good not and system. have case, device on on market, everyone the to overall Thanks of considerations, whole are on issue least S-ICD education vascular In And is our And international EP electrode to advised, of the excellent thanks, touching And uniformly that ought and and advisory, has we [ph] rate that months. physicians give electrode and as was than out the there diagnose of and XX not at to rate for physicians of The is post-implant. at issue, their

Stein. Thanks,

Stanley. comes The of next go… from question David Lewis Please Morgan

I'm Basically, curious, know, – Hi, implies the to just part in end quarter? mid kind comments And on upper February middle good define have improvement. part January? sort lower the the range. like of sort the first no the relative of in Dan, range kind maybe I appreciate taking morning. question. here seen of Thanks end, that the of for the guide you It the you the of on recovery of the to what quarter. seems does of

that X% X%. lot X% of to right? the think will down Thanks, down we in exactly months is We look in reiterate were I you like But the which said QX were So I on it, Mike QX, wouldn't I X%, down Yeah, QX. a what we is down the what David. specifically if QX, within the quarter. mid-point X% would say at look comment and

still in we're believe, will in COVID we results be So by our QX of impacted and kind that. the world,

Mike's Bob's heard to You answer question.

of lot goal which back getting we QX, I getting world, for get the where we above are numbers again, a to and COVID were and in guide the the in XXXX, today. around growth where and just to sit revenue in second a for into above half expansion appropriate with is pretty year and operating margins for think we're optimism full part still XXXX those in because think QX here peer margin half, of the that the I second past getting curve COVID,

yet. it's just quick XX% but growth a Mike, of Okay. quick haven't the for the follow-up just extent then biggest That's committed It's we have this me are two probably seen transaction rate growth reimbursement get document impaired? when merger Mike. revenue do is Preventice. and one. of little as a base, revised, driver, can't the And XX% of obviously, XX%, follow-up But rates the you relief? And number for on to the the to asset, that you

The quarter, is one of in you the progress FLX lot by in you commercial does other that larger if What tell terms expected. in Thanks we feeling to accounts getting conversion than just based consignment on made consignment? fourth saw consignment mid-year over your much. converting Are there that of these about us on was FLX? terms what WATCHMAN, a better comments that so on

with Yes. our That We're really I'll with the start complete consignment expectations. exceeded WATCHMAN it. one.

LOTUS nor charges consignment year, charges. You this more won't any see any

and it what And FLX. So the broad for shows that's just enthusiasm WATCHMAN really, adoption good. that

its well done So the It's now. on with conversion WATCHMAN in the full second we'll easily way be quarter.

to given ease of so our the profile momentum that to the it the safety and FLX, switch use and most want of has. customers And

So that really exceeded it.

have great portfolio The to now. momentum trial, WATCHMAN end. is a enrolling a in finish with that The with enrolling CHAMPION WATCHMAN FLX. business. of trial and there's And year lot XXXX beyond. expect behind year a OPTION enhancements we'll We of by There's

long-term So about faster good. Preventice mentioned as reimbursement is But that as a of nice is impacted excited that job of about you said by Preventice, On only XX% the as And about there. that's done Medicare it. has there in Holter share before, is taking current And said, really the is I and half modification market. that the market we're growing long-term given some the you mix exposure, Holter. product mix in

$XX-ish So exposure that one call of million segment. within that

As And tailwind is had in modification I mentioned reimbursement. variability. of a the before, the offer Preventice that improvement company only that slight of can segments other again,

the long-term the nearly outside businesses if They so win have the market market-leading MCOT more XXXX. shifts of that's a bit a Preventice. Holter in term, in the towards grew and there And portfolio XX% for

those So the strong other growth And have market segments that move Preventice we XXXX. businesses, portfolio. competitive the long-term Holter, share aren't across its set ability as in gained although against of to as the

And industry, appropriate segment on can best we with where as costs more Holter it? well the Dr. clinical to on market you a growing Stein, long-term share. faster as if want to maybe of is the obviously, we'll we've strategic as educate gained and So the segment. and efficacy associated. And comment piece societies authorities It's work the the the that

versus on hard. I failure advantages Mike. a disappointed think of we're I the bit Thanks, a the mean, that just short-term Again, Holter. a you in Yeah. really recognized, math get the this sort isn't with long-term

get differentiation, think just you a Holter don't that Mike you're it said. of day I particularly X-day modes you much particularly, what X looking times you that's cardiac recording. proposition. XX If do And Holter BodyGuardian do data as short that get most study, competitive gets greater a the MINI far is common their doing in think, the In Holter, reason fact it's if you over term, when the the monitor, the I a back monitoring, longer-term mobile payers long-term product convince like fibrillation, order event with intermittent for telemetry. of all long the to really to And these probably unique MCOT, conditions monitoring short-term atrial yield to can the some again, has run, Diagnostic outpatient heavy one recording. do tests. Preventice Holter, X of of and as lift

just useful ambulatory advantage the enhanced kinds monitoring a in as that switch just company. And really on an put so a brings Scientific the also is are they're big remotely do top of also light industry-leading these of which ability and to and abilities, payer capability within decisions of to AI space that Boston really,

so Okay. Thanks much.

Yeah.

of The Biegelsen question Fargo. Wells comes go from ahead. next Please Larry

the guidance morning. Good on and question. for the for the One Dan well, taking guidance. Thanks maybe two on -

to expected mid-point EPS First, are relative is the sales. the if But slightly doing think but guidance below? about $XX.X of right, which one slightly above your about for above I sales XXXX level, I'm high XXXX. lot be in color on Dan, a And the below why of would be implies I XXXX at the meaningfully follow-up. you know math at gave mid-point, to P&L. billion had XXXX, EPS a But sales helpful at to how the

Sure.

I way driver the just think the walk that, of maybe is a to there. is you go really Larry, operating components through best through which quick probably the to margin, give

QX improves in in So to is largely expect QX I - operating what then be and XXXX, dilutive we the second will margin, that of XXXX. half point adjusted exceeding terms could key we the is be margin operating year of a be in full half. or when the to second get of world the at will that XX.X% characterized post-COVID think as

that QX why those where corresponds It's and gross a of the talked and WATCHMAN volumes, in you then variances And kind a and is each normalized LOTUS short gross the you out lower adjust So have that's quarters. you about at get XX% the production more and we around again, take period XXXX margin to back margin abnormal really of the from lot And you a is you look that key term. that? go in interesting, volumes. if

So we've in that margin impacted world, approaching in is proven I COVID gross range. a XX% that think

approaching And so still it first XX that's COVID where the world. is that in probably quarter because a in is in we're well, range as

We time including volumes. in plants, in that world. have We Things likely COVID, have in actually we're the to the we manufacturing related COVID, other by things do costs. more higher lower that have impacted and we're to COVID-related freight that

expenses. it in from strong was also our very cash of deliver that flow, a Now the cash and to working but operating saw good were XXXX reducing news and capital, lot we you flow, able is, the

place post-COVID as world as we're be want and to research in We're to in invest. first percentage the end uptick of So of that spend little the we those We But you're mostly investments, of We're of Well, we measures point a of obviously investing focused. XXXX, the the to put potentially kind a see a spending do strong that. lapse commercially those at half and took back because to haven't towards in want for bit smartly. making we development in XXXX going right in 'XX. likely momentum. lot an sales of

areas. the talked as and X less in there's we've about less other there's months, However, travel last over in

the long to you challenged it profile as year. short, in when margin will the sequentially, at anyway start improve is the or quarter does look of half, elements operating you through first back quarter, story in the go of it the historically, gross likely margin, So second as always

SG&A we will So perspective, us likelihood. think from that's a which as higher have sales, to percentage then of half. second you percentage And the that, get the be that gets OpEx then an XX.X% lower you in above as a

a bit operating the ago. back XXXX. we expansion key, versus margin, second gross a little than we SG&A thought less half So probably contribution ago, year in thought again, than and might margin to lower But have year a

expectations Perfect. taking And procedures how then, Thanks for a were in deferred are, the deferred XXXX? what your that questions. catch-up given for are in your potential obviously procedures Mike, elective

We're confident that Yeah. will pretty happen.

[ph] impact obviously, Nervo second XX%. in second of back quarter COVID down was businesses of You you And Uro, them Cord COVID came saw you and quarter, back the then Uro was improved and impact snap when the PH saw I think, XX% know in some the very third again. quickly in stronger the fell, our down like Stimulators the quarter, and Spinal

vaccines the So as as COVID grew grew. Uro Many quarter XX%, business saw, BTG responds double-digit, decreases once Endo prominent, quickly once X%, I'd will plus see stabilizes the grew grew. say businesses. these sharp fourth you our become the Interventional - recovery businesses, and vaccine PI will a more grew of and Paclitaxel of you the and impact very

feel businesses. So be guide quickly. minimized. core that's some our we Spinal where it some namely And improves, Urology are second bullish Cord more the that businesses pretty of our Stimulation, seen see you we've a impact of half IC will impacted; and when very And COVID steps back just CRM as

you. Thank

Joanne Please question next Citibank. ahead. of Wuensch The go comes from

pandemic you in forthright an of look more slowed uptake been in And Two think to very everybody. in launch we how, EXALT-D, way? you've environment, about morning questions. Good sharing a this? has can it how improving constructive the

Yeah.

would in the markets environment. they in doing the can, and - capital would the I US So I some say, the - in best a teams Europe. units placed number western of of We

of So having to is - sales in continues a here, single-use place. and kind clinical term be and reimbursement to - building a is access, the there's is The what And the product, the a great, behavior near suites teams the which outpatient new in that a, accessible change capital to quite drive team evidence. scope. our is really using challenge place is for in healthy they're

we're great this and get And so, each in for seeing as we'll XXXX driver will COVID continues to better be quarter, and like a now. us just improve, growth better

it ability to on have will higher the turn accounts that very well the our current is some we'll nice But on, a rep in and follow us helpful. path Endo And for as However, of kind more difficult, is of $X it's given modify some and did, goes Scope the as of utilization will team, will we we reimbursement be Spyglass really similar the a seen access us. to billion the and sure, for this success, COVID growth very limitations hesitancy as launch practices And and for - the the our world. as scope as second we a market believe of be the XXXX half in year bronchoscope And ex-COVID for a quarter driver become and think us. well. urology each - meaningful our

lot make experience devices. have So know these We there. of a to we how

to as will business wane as likely second year enhancements to that continues in see the in down, accelerate EXALT-D XXXX. and well, the You'll half of COVID

my Thanks. momentum business. do another seems gaining rolling business second getting throughout drivers and two these to Peripheral talking how a That's Because gaining to BTG of seem that to you. me to that Thank the Intervention And with the you that do to you're to be year? about And back that main question strength second about? out be has think the also? half

about talk I'll PI. Sure.

WATCHMAN - fourth I’ll a more can PI Balloon well. arterial with division be talk with have we year. that and cryo our some fastest million extremely than set some XXXX. the to strong most fantastic specifically, FLX in growing do They impact terrific up very quarter. But neuromod and got going as about and COVID year. other we It things. drivers, and they've X% then, just main with the at have on look SCS and you PI will a they're year portfolio mentioned, grew will that the think, have the Ranger and this is in And expect talk Eluvia. will $XXX including likely in minute, a They about differentiated exceed I launches, will I Endo - and business, in for And Eluvia, double. Uro NTAP

results. sales continues of Venous Interventional The really So we're which extremely then well-positioned really that expectations acquired terms grow in we gem It's Oncology, space BTG. with really And there. to in well. is the exceeded

in there. aggressively countries. indications just some expanding Europe Pac, more it We're Asia reimbursement and we're in Korea, some expanding other Now got Poland great and

So XXXX. will in PI the within composite very healthy businesses be

Thank you.

Yeah.

The Marcus go ahead. JPMorgan. Please next question comes of from Robbie

a it of guidance hit I is a dead Great. the COVID, really normal continues in impact in at Thanks strategy for horse worser planned took I should much last extend, how when the downside approaching and for wanted on you especially you But still, slow Just XXXX, middle year, to a to for want scenarios? in How how pace. - room after virus of more the we're to on much have understand, the It's understand beat really guidance? you're for conservative some Not the case touch there second second downside a the versus is just trying taking it. question. planning think to here, half. vaccine my that rollout just but and on

can one. Robbie, take Sure, I that

the think In appropriate it's an terms answer, amount. I of

we've confident ranges in So in we outcomes. they're we year, are and guidance can believe that into we obviously, full year and QX as we hit Yes, look normally And range EPS as we sales we're to for wider we contemplate the year, hit. first can sales and those have than want given that that giving coming out a there are. a different the ranges mentioned. at that EPS, That's time intentional, they

again we but environment, in to see some Given term record can and both important in year. a are into think felt full of we do, we the on into COVID uncertainty it kind the of business, short of the where half insight second we be the what and we how you give the

within So, I there's the sides ranges. amount an believe room of appropriate both on guidance

it. then just And a follow-up. Got maybe

As like look of at product looks XXXX have some the here. be launching it will we your slate new launches, basically you

have the new new you we delayed trial enrollment XXXX but How How We some in gaps launch any touched and beyond? patient Thanks. I of slide there, launches about product which is has WaveRider; we the been should have to do and EXALT-D, enrollment been? know you due you have product on. expect think your has how environment?

launches some XXXX the is that there good - XXXX are the in in were XXXX a impacted ‘XX. say of are going - things in big news launched the would because lot I to and of we get on impact

of that product launching right impact So, well. XXXX have as will now no we we're shortage launches that

CHAMPION In starting. mixed. OPTION terms have trial, ramped trials say the clinical clinical bit a very of I quickly trial, with trial it's the The WATCHMAN the would

bit new trials the therapies require of have a that been Some slower.

about to clinical US, do the EXALT-D, the overseas is to The in that are already had begin in nice challenges win We the a COVID us. mitral for which given we excited trial some about. impact. that approval the - We talked trying

kind bit the in. enrolling of rolling month of say for result we're which you're enrollment the US a a cryo. timing. impact would some in trial on terms a in US a business markets for We're it's X mixed I But trial of about maybe So, ACURATE, of depending the

on range of clinical I So, any think, companies or would Stein for, X in some Meredith, know, maybe trial work. don't Dr. most the terms thoughts I there's Dr. that? maybe impact, month

some add, TAVR I'd of with schedule. those faster. is is PROTECTED ahead mixed is lot TAVR thing been it's cerebral protection PROTECTED agree said, you only trials well the with a embolic ahead -- So, one going where trials going what Mike, of recruitment trial. a but bag, I

trials. of portfolio mixed a is it So,

question, final one Andrew, please.

Yes. Matt will go And of ahead. UBS. come Taylor that Please question from

I one for this Hi. taking assumptions to the on year. Thank you for wanted ask question. the

geographies? thoughts high the double-digits, in there? in differences you versus us Are different China called on us which You out is Europe could was the stent America any give encouraging if of you can US growing I specifics give wondering recovery? versus is level Any phase major expecting that the headwind. you Latin

Sure.

for Just assuming. you're XXXX,

our struggling COVID some say Asia For I'd kind other business, LatAm of is is bit regions. standpoint, with XXXX, From impact geographic think effective. the I than The a more region China in been more a other strong I And we're The growth you've XXXX. mix. only DES complex coronary and as mentioned, our double-digit got is business, with of about great PI comfortable balance X% of businesses there.

this year strong a have year. will China So

managing but flare-ups of near a done seeing are You remarkable China with they've it. the some in COVID term, job minor in

well. given COVID. of of COVID impact But similar been Japan pace of Asia of Europe could recovery. in business terms impact of overall, as US And and the be have - flare-ups You the are I kind think stronger, seeing in and the some so COVID likely

Okay. improving Thanks. to the growth going as wanes, spill XXXX. And I earlier think question. organic of wanted you're you just kind ask continuation over to that's into a of assuming an COVID When do

stronger a ‘XX, that held-back gets some the year excess demand So in half as could up? demand first of see or cleaned you of

to the we'd certainly like That's scenario see.

will potential the that range. And here, group refreshing. given our we'll year. above at but a And assume, not done. have all, volumes are impact certainly no to back we in of be will ex-COVID to COVID given be We the obviously to there have ‘XX greater, where the There X peer these X ‘XX kind is procedures be guidance desire

So tailwind company. that for the potential will be a nice

Mike. Thanks,

Yeah.

our… This concludes

Andrew. go ahead. Please Thanks,

Yes.

Just to like Susan conclude conference the remarks. the turn Lisa Q&A to session, any closing back over I'd to for

company. your interest your for and the in attention you Thank

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