Boston Scientific (BSX) 24 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to the Boston Scientific First Quarter 2024 Earnings Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Jon Monson, Senior Vice President, Investor Relations. Please go ahead.

welcome, thanks and today. joining Drew, you, everyone, for and us Thank and me Mike Dan Officer; President are today's Brennan, Financial Chairman Vice With call Executive Mahoney, on and Chief Executive Chief Officer. and

which release press measures morning QX the a issued included the earlier of release. We reconciliations in announcing this our results, used non-GAAP

under non-GAAP & Relations link today's call in a posted as section have used our that release Financials well the measures Investor the as We to reconciliations Filings. of website of heading the to

of QX duration will outlook approximately well The then QX morning's this be and take will the guidance, including we'll X call Dan and your and provide hour. XXXX full for as performance Mike our business, comments year on as questions.

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

divestitures, remind revenue begin, growth revenue fluctuations. the call, we like Before further period less I'd of growth that net excludes which And on the sales. foreign comparable operational everyone and than a impact for currency organic there full of are excludes to acquisitions

the Relevant are for in and of Relievant XXXX. acquisitions as as which Apollo and closed March divestitures stake investment Holdings endoluminal excluded and the organic therapy our of Endosurgery growth Acotec November the B. February, vacuum which in Braun, XXXX, acquisitions April closed Medsystems, Limited from in respectively, and acquisition Scientific well majority portfolio

April XXXX. Divestitures include in pathology closed endoscopy the which business,

XXXX, close to announced conditions. agreement the customary the previously Axonics, of which expected Guidance acquire subject in excludes Inc., is second half to to closing

website. found Highlights our on and be deck, may please information, to refer Operational more Financial For our Investor Relations which QX

to otherwise revenue, references unless specified, and are organic. On this call, all sales

estimate as our statements our opportunities; of new and and identified things, other sales, of well our and expected clinical law, other about within other R&D cash statements and forward-looking and performance, may as use believe, trials; launches; similar growth earnings; anticipate, like federal contains growth share; product and cost cash; be securities acquisitions, expect, They approvals words. rates, among our and meaning flow may, tax anticipated including savings call include, This financial and by expenses. words margins spend which the market

underlying out risks certain our or incorrect assumptions expectations materialize, implied vary forward-looking the be results statements. to projections could from If turn expressed materially or by actual uncertainties and our or

Factors those described may in Risk differences that filed subsequent recent most and the with such include of section Factors XX-K the SEC. cause our XX-Qs

obligation as speak only These of or required and them, update date intention law. as statements by except disclaim to today's any we

turn At it Mike? this point, I'll over to Mike.

Jon. Thank you Thanks, us joining to for today. everyone

winning Our global the portfolio, fueled including surpassed of XX and globally our our in new XXXX, category expectations, of team. we leadership innovative our strategy results by products launched first execution nearly the the our quarter spirit

In the guidance exceeds XX% 'XX, grew company versus sales our first of X%. quarter of which and operational sales 'XX, high first end total organic to the grew quarter X% range XX%

in regions. all procedural with businesses continues units most our grew strong commercial believe portfolios that X than X units supported of the quarter, differentiated our be and by execution, growth strong markets Our of respective We across and faster regions business digits. their to healthy double diversified grew In business demand.

guidance which First range the exceeds end $X.XX, grew of versus quarter EPS was $X.XX. XXXX, $X.XX adjusted XX% to which high our of

operating was margin XX.X%. adjusted quarter First

year second full 'XX our quarter and to Turning outlook.

team. by to and guidance from continued XX% growth our X% full second to X% We and momentum to 'XX to procedural are guiding quarter XX%, organic reflecting global our healthy XX% to innovative volumes year XX% execution portfolio, from for raising our of

to $X.XX to XX%. adjusted we our EPS of XX% expect and is full to $X.XX representing second year EPS adjusted guidance Our to be 'XX growth quarter $X.XX $X.XX,

on provide provide along highlights comments financials our 'XX will on I'll more outlook. Dan on our our quarter, details with additional first and

the XX% operational quarter the Regionally, ICTx Endoscopy as of on and U.S. particular quarter, with grew launch basis, midway versus as on our fueled strength first well FARAPULSE WATCHMAN through an by business Urology in the units. EP,

and East led and businesses. first Middle exceptional as in Endoscopy, Africa XX% on EP Europe, in basis performance grew above-market This operational double-digit growth growth an our 'XX. PI quarter well was versus by Urology as

emerging We markets. market, momentum driven by broad-based investment and expect business continue continued to our outpace the to across in

and growing versus products. strong Asia double Rezum first our X by Cardiovascular in of Pac excellent units by with digits. grew digits all Access business AGENT double digits quarter units. driven 'XX, operationally strong delivered our Solutions China double-digit double led grew business growing X our XX% DCB, performance Japan results, of

our to and forward as in I'll XX%, look announced the second the In secured units. now growth of the Rezum France. performed status XXXX. of grew now some in in commentary well 'XX, We additional Urology, reimbursement on as urology. stone management well first provide and quarter, acquisition in internationally, organically operationally the with U.S. expected both versus business closing half in Axonics previously and sales both prosthetic quarter double-digit

our XX% results organically anchor products AXIOS sales portfolio, as first and imaging underpinned products. grew and Strong operationally versus single-use XX% first quarter were driven Endoscopy the breadth such by by 'XX. quarter our of differentiated

to U.K. growing for Within our we expected NICE Mark endoluminal MANTIS and in franchise. bariatric both endoscopic our for CE procedure, the in Clip the guidance positive issued further ESG momentum received surgery surgery also quarter, the

declined grew sales first organically 'XX. operationally Neuromodulation XX% X% versus and quarter

by image-guided directional double-digit U.S. Our brain driven enabled programming. digits in high franchise single by with grew comprehensive stimulation offering quarter the our low growth

an digits quarter, U.S. franchise first our double basis, with pressure but continued pain in declined on operationally, organic grew business. our low mid-single SCS the digits In

the indication ] the next-generation the approval symptom pain receive first back during (sic) [ AutoDose. launched our In did system WaveWriter U.S., quarter, FDA and nonsurgical and recently FAST we

XXXX. we expect payer from sales novel about to and Relievant to Intracept steady coverage, XX% Importantly, business expansion continues the very procedure with well perform the in of grow

XX% strength and evidence XX% and first was supported global grew by sales growth commercial operationally our execution. arterial 'XX. clinical quarter by portfolio bolstered of organically drug-eluting in versus Intervention Peripheral Double-digit the

In venous, and well, Varithena we to in management clot continued line above-market perform continued growth with from expectations. saw

franchise digits double interventional including of embolization quarter, Embold family strong by offering in grew broad devices, first in the the Our coil driven our oncology therapies. cancer

digits In from the positive with the who demonstrating grew quarter, intermediate patients HCC with and advanced TheraSphere also real-world and double PROACTIF, treated data presented, TheraSphere. were was outcomes study, in

Cardiology quarter operational XX% sales another organic sales XXXX. first excellent quarter with and both versus growing delivered

first XX% Within Cardiology, Interventional impressive an quarter grew Therapy versus Cardiology organically 'XX. sales

by our DCB in AGENT Coronary portfolio led international was Growth and by our driven Therapies imaging strength in continued Japan. in regions,

also the U.S., of platform. we're the ongoing In imaging our AVVIGO+, AI-guided pleased with launch which is

we received FDA second expect DCB initiate launch regulatory also in in the quarter, to following first AGENT our as We and a quarter earlier-than-anticipated we approval. ramp limited approval of the supply

Heart led grew first to quarter, in again from and ACURATE growth existing see Structural franchise once which accounts. mid-teens neoX, Our by continues Valves both new

submitted now next-generation CE launch which XXXX. for expect valve, have Prime Mark to to we our ACURATE in continue We for in Europe

organically full range sheath, U.S., device Pro optimal FDA TruSteer more WATCHMAN position. for had LAA received and another widest and allowing XX% into launch in positioning steerable strong In quarter, the maintaining the clearance our we moved the WATCHMAN to FLX of share physicians anatomies. market-leading achieve growing

Canada, International within in WATCHMAN and launched we will received momentum in approval FLX the quarter, growth and and was support driven markets. ongoing in by ongoing continued -- these Japan which Pro momentum growth

of market Cardiac quarter digits, adoption grew also grew led X% first ICM first sales strong double the organically Rhythm the our by Management LUX-Dx device. quarter, our in In 'XX. Diagnostics franchise second-generation

business high-voltage our and core low In digits. low-voltage CRM, business mid-single our grew grew single digits

S-ICD launch. impact share Europe Emblem a position to Our very or seen competitor's maintain in U.S. we've the its recent from continues strong and limited

EMPOWER EMPOWER as CRM our use clear to the a to of modular pacing studying and anticipate upcoming leadless FDA which with pivotal this anti-tachycardia 'XX. provide stand-alone as in approval look presentation as single-chamber trial and leader the a market in well system remain data HRS conjunction to pacemaker, pacemaker the of of in the space needed. is S-ICD MODULAR expect Emblem We at pacemaker We leadless the ATP, to when function forward

Electrophysiology FARAPULSE adoption the sales quarter organically grew 'XX of XX% driven first transformative operationally and versus both platform. by the

grew account robust in and quarter openings Europe. International sales utilization FARAPULSE first continued with XX%,

quarter propelled FARAPULSE. by of organically, launch mid-first XX% grew first quarter the sales U.S.

commercial made We have to and good investment evidence, already our chain. progress execution in entering supply clinical by supported high-volume compelling accounts,

and on efficiency feedback unique of has FARAPULSE with effectiveness procedure. RF adoption ease appreciate Electrophysiologists from both Early been rapid users. the extremely and use, of safety profile, positive FARAPULSE's cryo

broad our global growth in EP solutions, our and expect portfolio, with We other to AF 'XX significant beyond. drive coupled

also global in in investing capabilities. to innovation, leadership extend by We our PFA clinical and evidence intend

and integrated expected in catheter, FARAWAVE during half the of which NAVIGATE-PF Within the with the quarter, of we the a U.S. software clinical cardiac to studying mapping commenced year. FARAVIEW both of are trial, the launch second enrollment non-enabled

of the persistent presented in U.S. the in to Phase We ADVANTAGE to Phase studying clinical trial I which also in II launch enrollment AF CTI FARAPOINT AF And data for from of expected XXXX. XXXX. our also in device the is ablations, anticipate we ADVANTAGE completed for trial, fourth be quarter

which the also meeting We in FARAPULSE. of clinical highlight upcoming the late-breakers to HRS aims at our capabilities May, unique forward look to

governance Also improve social company's Performance goals. highlighting our patient week, and to our XXXX the this while of prioritizing note, actions outcomes we released Report, environmental,

and innovating shaping care X to We healthier planet a with continue while to people meet make patient integrity. all progress empowering areas: performing needs, in key

continue we have -- possible of challenge will teams that While more and values-driven always of to the culture commitment our to I the this know global to our bar. challenge what's raise to do,

employees for very XXXX delivering performance remain global financial I'm to long who for top-tier while term committed grateful to closing, In life. investing to work day beyond. science and our We in every the advance

And on with the more financials. provide details hand to over I'll Dan that, to

Mike. Thanks,

our of point from quarter a XX.X% quarter $X.XXX includes line represents XXX growth and first XXXX exchange, in basis consolidated XXXX foreign First revenue versus expectations. with reported billion headwind

contributed range XX% X% quarter $XX foreign the exchange, X%. divestitures was million growth, quarter. points, in resulting closed operational XX.X% guidance our from basis to organic revenue this headwind revenue growth first acquisitions and in from Excluding exceeding the XXX of Sales

strong adjusted $X.XX of high of to guidance XXXX by our per $X.XX our grew share QX versus primarily XXXX performance. sales range $X.XX, end the XX.X% earnings driven exceeding of

was driven quarter Adjusted for increased first includes less the favorable gross margin XX.X%, slightly due year-over-year and foreign product was point from charges lower headwind anticipated, basis capital exchange. of mix gross by than approximate levels the in primarily placements which inventory XX Adjusted quarter. margin to an

lower inventory launches, of XXXX charges our a year to below and second the annual adjusted slightly increasing benefit we full year our to expect from or Despite new the our rate, standard QX, recognition be half in improvements of lower manufacturing mix year. full at full continue gross by the driven margin cost

adjusted to expanding we from to to margin committed remain We in points by of basis XXX of XXXX XX.X%. was XXXX XX towards launches. operating balance as with make goal to margin the our operating flexibility adjusted progress basis investments quarter improvement support critical to key First XX plan long-range XXXX points

On a GAAP basis, XX.X%. first was operating margin quarter

the Moving line. to below

quarter million. interest other $XX adjusted totaled expenses First and

basis, for adjusted our XX.X%, tax quarter includes benefit accounting. items compensation which an rate and stock On tax discrete favorable first the from was the

rate tax the XX.X% operational was Our for quarter.

shares at Fully the billion diluted X.XXX weighted quarter. average first shares outstanding ended in

which Free million cash restructuring, capital million of other in million a items. litigation and $XXX negative $XXX for acquisitions, flow activities to related quarter first less includes operating $XXX expenditures, from the was million with special $XX net payments

$XXX $X to billion, full cash to to exceed of In expected million XXXX, continue payments items. we approximately year expect which related includes free special flow

use of the on of which offering billion hand note on XX, fund the -- $X.X we billion partially had February billion, inclusive $X Axonics we completed to As XX, of senior acquisition. to euro-denominated XXXX, cash intend March X

$XXX During quarter, repaid gross notes and of million we maturity, X.Xx the as leverage XX. debt March was senior upon first approximately our of

to by vacuum remains earnings Braun, to existing recently B. strategic be complements followed annual from share therapy portfolio XXXX. In repurchases is closed Our and to top our offset from the dilution our strategy, of in grants. allocation priority immaterial acquisition the portfolio employee capital M&A, endoscopy share expected stock per alignment endoluminal we which with acquisition tuck-in

already million was XX, our March is reserve reserve $XXX legal through Our $XX funds. million funded of versus QX as XXXX. settlement a decrease of of qualified And $XX million this

XXXX. walk now full for year I'll the QX guidance through and

to XXXX. reported We versus XX% in a expect of full growth XXXX XX% revenue year to range be

year XXXX Excluding an foreign we current growth approximate to XX.X%. point headwind from exchange rates, on full revenue based XX.X% to basis expect XX operational be

versus year to a basis XX% contribution in closed Excluding acquisitions, XXXX. point growth expect XX% of revenue to XXX from a we range XXXX full be organic

in be a revenue We expect of XXXX growth range second XX.X% XXXX. versus reported XX.X% quarter quarter second to to

based second quarter be headwind basis closed XXXX. Excluding be exchange current expect to an XXXX to growth organic versus acquisitions, approximate XXX to we excluding XXXX XX.X% revenue basis And we rates, of growth point from XX% range a foreign operational XX.X%. XXX quarter expect in on XX% a contribution point revenue from to second

We be now to full approximately expense expect year $XXX adjusted XXXX below-the-line million.

Under OECD XXXX we including and to tax laws and current tax operational XX% year issued continue rate legislation, under enacted full Pillar a rules, X XX%. of rate of approximately guidance forecast an adjusted approximately

We adjusted and previous in an to be our foreign to from XX% expect to approximate XX% is representing range $X.XX from expectations. earnings versus headwind unchanged $X.XX growth full XXXX, exchange, year per share $X.XX, of a including which

of range We $X.XX $X.XX. expect to quarter share to a in adjusted earnings second per be

website highlights, results our financial Investor outlines XXXX XXXX details more for more Relations QX which on please For QX check operational guidance. information, and our and

I'll turn to who Jon, Q&A. it the that, will with back moderate And

for minutes next let's Drew, for open Dan. Thanks, so it Instructions] please or questions go [Operator Drew, up the XX ahead.

The Instructions] question Robbie Marcus JPMorgan. comes [Operator with first from

a and phenomenal OUS. quarter. general. and FARAPULSE on EP guess with in doc substantial, PFA feedback is Congrats to U.S. question, it fantastic beat has in The The Great. my was we be both I one general. hear on FARAPULSE on

here get So from the field, view seeing opportunity. go is what in it much of the the love how the willingness to guidance adopt your the to I'd fast how and new just raise you're could technology, FARAPULSE just and on

Yes.

widen a Stein my with platform the team science comment by current company. out but early shout and really team gap and on clinical of to Chris This pioneering years. our done by clinically, significant and to future continue products is transformational in the in seen O'Hara, can work amount that product in our amazing work Dr. PFA to the really in work FARAPULSE want over we career the most significantly has FARAPULSE I the the to multiple And the with invest system. First, I've

very both And as rapid adoption seeing RF I mentioned in we're users. the script, and cryo from

to U.S. talented commercial with thus meet demand teams. continue footprint our And able chain in the We far to supply the in our we're invest

Europe, they they than But XXXX. new more to we're also live we in where about a excited But utilization and bit a open we've centers been the now continue Europe ongoing years. of increase momentum that have number in for supply in did

And fourth Japan can really and with take our in of kind train of them working XXXX so to Asia, we're teams diligently also up China, in a story in also they quarter Asia. FARAPULSE advantage of more

you it it's to effectiveness. of results, excellent So Stein, rapid and use, if -- seeing and really ease a excellent safety platform we're want Dr. adoption comment? remarkable

I PFA on the Robbie. Yes. is Maybe and in I'd the one different I'd here really of think everyone thinking against own. caution Thanks, be Thanks. thing -- that just PFA general, every Mike. evaluated add, its to is Thanks, needs very system

of over XX,XXX reported this of efficacy, well terms PFA use the said, you with see on people safety, catheter rapid advantages of dosing we've what use as data terms both and got on design, FARAPULSE of what when of the in in ease data, strategy. that's the have randomized and registry driving Mike waveform and including in when just it U.S. and And just get globally. in clinically, completely results you data data, they patients has And said, the Mike as data are published total clinical uptake, at terms people on see efficiency. terms in compelling trial point, So see dependent at and now

Larry Fargo. Biegelsen from comes with question next Wells The

really echo congratulations a strong I quarter here. on Robbie's

compelled here. question, to feel I one question Just big-picture a ask with my

LRP to XXXX 'XX over year time updated of in in September your was You the to XX% at XXXX. organic X% growth for assumption last would to XXXX. The growth accelerate that

You're XX% guiding growth. to to organic today XX%

the we X% question this the in to growth think strong of So CAGR accelerate you context XXXX about guidance? do how is, should And XXXX? still in to the XX% expect

Yes.

the outlined tech goal and at Day X% med we to very a So our company. high-performing Investor be XX% to

that first the at -- to with referred results pleased super quarter you led we're also the XX% business to led and to the so guidance to momentum And $XX.

taking So up. receive we're than our earlier year guidance we We expected. with did full pleased FARAPULSE also

point, look we're growth this do but this to would at our in But this that at aim year. the all in But XXXX. off our at to super going XXXX point. be commit we're and point, to that accelerating to hold would we'll all it with be So that, later not confirm premature at Certainly, and momentum the across have units. guidance pleased we regions business

next comes with Stifel. from The question Rick Wise

focus I'd performing and Are where more you it's steps timing? like any guess you're I can internationally. spoke ACURATE about about in feeling you color But It you optimistic, maybe the sounds well are just internationally, be great. both product neo. would the just incremental perhaps feeling States? cautious on more next And on new expand about United you

with the Sure. results Thanks, very Rick. pleased in Europe. We're

Europe have enhance additional major importantly, We and market to and further the valve portfolio recently we're will the in And said, we've this which countries continue did in that sizes grow valve and you adoption across Europe. Europe, provide submission invested we quite above excited just in a as Prime most in as well. excellent about bit

go to So in we Europe. expect well that

publicly. commentary In the U.S., to going be that there's we not really any stated haven't new

follow-up. We are the year full waiting for

clinical next of communicate the release We also in timing be the of in with working future and U.S. will the data our that steps date the the we'll regulators, and

from comes next question Wuensch The Citi. with Joanne

quarter. question operating on nice margins. A Another

I period, anyway... X-year LRP your was over assume? basis -- points think was would XXX the it I over But

XXX -- just over X-year the to points. you, Joanne. XXXX was was over interrupt was it not -- to period. XXXX It basis No, was it

at just as about looking quarter like from you're X-year leverage of clarification. you thinking delivery, that some looks how I'm Thank it some period. providing the of But leverage came from I'm for Excellent. came it the curious R&D, SG&A. the over that

Yes.

think the the really at company of can and in over all will it's X-year all part the that contribute. time, of I a And the expansion given great point any is the contribute. think of period, I lines margin story the history of kind lines DNA

that that optimistic So improves gross that love year. margin but I that, I'm didn't XX.X%, this through the at quarter,

January our points. probably XX to But it we margin and that this not said Day Investor the at year contribute going on XX to gross reiterated we call, to is

year, of story. gross margin XXXX. 'XX, OpEx that So from and at to today more contribute. in that. back it's margin leverage this we getting absolutely, I and back and improving an plans it on maniacally have do We're XX.X% think the used where But Recall, 'XX be can focused gross to in is

of lines the be. So improve doorstep that the of could puts goal the at journey. 'XX, the spot to P&L of have of contribute kind along as long-term summary It I years, look all that we we which in a is think focus. to really XXX puts points XX% the XX% end at the basis is, it over X us And nice that

question Evercore next The with from Vijay Kumar comes ISI.

you little a was U.S., openings procedure on driven How one of question much maybe the my dynamic? a account here. overall uptake? solid bit on XX% in can give stocking us of this by the EP Congrats XX% the portfolio. any how The finish growth, there color Mike, was versus -- really on

matter payment, sort And where we on TPT? it are does does that, tech add-on of new to related

Yes.

really So as it XX% was launch. mid-quarter the you in results the mentioned, U.S., a

we of in rest first some quickly in So momentum. year quarter moved good obviously, forward the on pretty second to based And the results, the the have the look teams quarter. to impact and

not any there's big onetime stocking. So

shows adoption which also and the driven it openings is using multiple continued console, very a once I of by rapid So and hospitals would utilization second seeing this new routinely We're technology, account buying the therefore, and adoption the day. the every sign great product have they is of because say platform. it their also

and openings adoption U.S. new the so using results. And that's the increased it's they and account platform, driving once really start

I bit open accounts to with Europe, more utilization in more now as supply, which impressive, continue FARAPULSE of have the a I mentioned, they that is think accounts platform. increase and And existing they the

but we we'll we'll significant we On it's bit the continue as Stein? you updates less think something them. see FARAPULSE, a to provide for it's Dr. evaluate. And TPT,

that, that's described I NTAP.

sorry. I'm

to And out. point Yes. just Vijay, think I important maybe

the is right, which to First proposed said applies our fee-for-service, a to still related AF of customers. minority believe today. the small off, ablations Having that, do FARAPULSE that Medicare inpatient of NTAP use we one NTAP really can

actually, And the helpful of perspective, having important a ICD-XX a to physician it's position hospitals. hospital physicians to in a from we're not not That's think that the and create that codes unique either or perspective product-specific. really are I

Travis from comes question America. of next Bank The Steed with

the sustain then of I through growth see to some kind those -- ablation new Congrats again quarter. is can this ask overall market, -- do And market later? for DRG Or indication closure. atrial do on XX%-plus a than good sooner that LAC before need of you to wanted expansions? and rather the kind point appendage you about think indication that expansions the at left

and XXXX. pleased position. enhance, our first comments WATCHMAN our that's off We not of share XX%. if make a coming with mind, we We're grew in And maintain, But nearly from I'll XX% still keep quarter strong comp performance. Stein. Dr. globally

TAM, excited not WATCHMAN. that upcoming And further can also which WATCHMAN, the for highlight OPTION with only will if with growth significantly position widen we're and of but the some the with believe, market, we share CHAMPION, successful, trials but

you Dr. and any item. So Stein, of if the comment concomitant on also to want that

Yes. Thanks, Mike. Yes.

high risk on and from WATCHMAN who benefit market. stand to mean, patients the -- with is first look is This of a healthy still all, at for the trials, I this therapy who AF very under-penetrated stroke at a when So were still you procedure. first Travis,

to first one anticoagulants. oral evaluates followed be as the year Mike to present use CHAMPION, in Then that is able we an versus OPTION to novel is out all-comers of right, alternative expect that trials that's oral that the the which trial, trial mentioned, or XXXX. The results Again, we following And hope the anticoagulants WATCHMAN to late report the this the early next year. that of ablation. trial

near are to in term those we're So relatively now these the that data -- going points. see

of Before I rule good is When that. see a from We're was patients. valve the back it are bit true that about before who to part good This think stop I'll procedure, CMS. think is DRG hospitals. doing concomitant This even I everyone. every anticoagulants, outpatients that, of their ablation really know and that's off, for This little is you when an to you procedures, something still right, good almost for that's able undergoing these first that in talking proposed they wanted worth tell is be to patient gratified for would who oral today. is came

when incremental capacity to all be able look undergoing how procedural a it and risks to going and at when makes doing more from that think standpoint this a And efficiencies to procedures It in the perspective, the at makes just being you hospitals sense WATCHMAN do setting sense. from over just more and about that's patient-centered it doing you have improve time. right, one avoiding hospital help also you procedures, two really ablations AF

these trials good data getting hospitals. procedures. look to So going CHAMPION think And We for for this. this the doing that's OPTION We forward from for out see this is patients. and further to think even increase the we're to is good like impetus excited we

from UBS. with Antalffy next comes question The Danielle

also quarter. I'll a really strong congrats on say

I'll question, that's them, I to sure describe some the, look to fair For of slower-growth call legacy at businesses, if maybe the wanted businesses. one my not

very I of strong. mean, digits, Interventional Cardiology growth CRM a very mid-single-digit is strong. double

growth Can they sort end of Just obviously, about happen the slower CRM. that stent given these profiles growth what an portfolio, sustain on markets, to thinking I'm Interventional needs perspective, the of curious perspective more slower-growth end then about sort volume And that probably those your of think growth? how markets? Cardiology. to or innovation of are to from in and kinds some a drug-eluting from arguably sustain

question. already appreciate say Really I asking would the Danielle. that has Thanks, innovation you happened.

ago, essentially. explain We it cardiology me bit our And ICTx, just that a dominated stents. Let business drug-eluting more. years interventional by was call

to X% stents, our mix the and be X% I X% represent overall drug-eluting Today, in likely of think, will close following and years.

really smaller it's Boston very small ICTx. a of a portion of So Scientific and portion

the our driving XX% is advanced portfolio. ICTx what's imaging within So growth

So you're AVVIGO+ with to effectiveness of adoption come seeing calcium help IVUS the complex that especially platform of more with and patients these more identify and and more imaging, procedures. the growing our

you're of adoption our this imaging new growing the Europe adoption Asia in on So wide seeing U.S. based platform, adoption in wide and in platform.

well products. the it's Wolverine capabilities with as break other our So really our to coronary complex capabilities calcium and imaging as

in our second of quarter XXXX. from Asia, in in 'XX and benefit recently balloon minor from they've then some that. the successful And been where U.S., very the half launching have AGENT in that particularly drug-coated in second we in We'll expect approval and for we received product the 'XX growth enhanced product that

there job is of the portfolio completely the trajectory done a growth great Also ICTx. Structural included and Europe. of the in our Heart business that really has So team revamping in

line, our and also be I quite kind And driver ago continues that years X% in with pacemakers with growth But market business our business. and bigger many device. is we with the in CRM, S-ICD Preventice diagnostics ICM CRM now invested to platform our loop we our the would our in recorder grew second-generation of say, and -- And with that business defibrillators. essentially robust. grow

we've really significantly those So the markets continue growth of to support portfolio of reshaped to both the company. in the

Cowen. with question Jennings TD comes next from The Josh

an and the just your opportunity. of opening view diagnostic mapping update the ask on to EP Wanted business about

You software NAVIGATE-PF the where initiated in module the study is play. going be to

in take are mapping And opportunity share RHYTHMIA? just for seeing you is PFA these really to question diagnostic of how for early in increased the this of segment guess the viewing I EP world? demand stages launch the are you Boston

you if one? could Stein, that Dr. take

in your don't I Yes. of the one Get emphasize at launch as really sort to out It's cases is start accounts your at workflow. using things the see how that works and look you to used change a still thing think modifying to with lot workflow your want then do FARAPULSE, And the playing outset. it early we're launch. working in of I say how are in

what in are Not not whether launch deliberately really, using. platform So not mapping. in really we've seen people a or a early they're big shift are in shift what mapping big

said deliberately we product software. the interfaces has that have this studies use Nav-enabled having human that's that catheter, our we've next-generation with everyone of FARAVIEW FARAWAVE our right, I as earlier initiated Now And year. seen, right, built the that, first think and

when want desire FARAPULSE. some is use they're need feel our to the people will right, any they're and in unique a that's system. who who a efficient doing be use want workflow It to are will continue navigation with as use to will pulmonary people don't advantages FARAPULSE mapping who there to centers our using that vein bring Europe. That really belief, of navigation others mapping a lot to a There very in used who system isolation adopting be been

advantages people really We going very use who But it our have some of will new to use forcing software this no compelling system. to it. to platform down. bring people intention We're does not lock

from comes Pasquale Research. Nephron Chris question with next The

that a you to And in How are expect full you you thinking about the a to working to the capacity. in still position with opportunity for move up manufacturing mentioned be into When launch ramp do U.S.? you're AGENT product?

Sure.

the in product the has we product is and the have hopes we by XXXX. approval, more doing high in the NICE for in Japan half have So second design extremely impact and well trial and excellent the team clinical

AGENT. clinical that's accounts going most the And a big and the contracting given is process with the restenosis of in through deliverability in-stent that's with been proven the really we're well, and need there going U.S. with unmet that's high initiated. currently, So

demand it. for start expect seeing the in half to And and quarter. contracting of systems But major going now, throughout some through significantly So process 'XX. we we you'll health ramp year with and there's the accelerate physician more second sales the the in more second the high are that

syndrome. potentially potential Yes. comprises case And the coronary XX% outside to DCBs current and see And acute PCI evaluating expanded U.S., and current in U.S. expand to in-stent current label everyone, launch volume. the use indication used some volume. once believe us just even potentially we also lesions, Chris, could those in we bifurcation right? disease, we PCI label. approximately Internationally, to the XX% there vessel is small opportunities indications that of remind restenosis, Our And a up of take we of restenosis, are in-stent

next Matthew question from with Piper The O'Brien Sandler. comes

I million right perfect in in but here, don't U.S. the numbers around roughly Is it catheter that between the somewhere looking QX, FARAPULSE $XX at in have looks like EP did generator and number? the you the itself. number revenue

I'm support this this the more to manufacture rest the $XXX enough getting to And to of then And year. that? like million can number? something guidance plus through around year Is product the when $XXX million I out FARAPULSE even the increase, you start carry of that right

FARAPULSE confirm your We out Yes. so be cases, to number numbers, yet. forth of breaking this won't math. accounts, going At we're and not point, dollars

company. the recall you the it till really about we we based $X that platform materiality the If was to close back of to waited on provided billion before WATCHMAN days,

extremely the supply to in in we and going future the and meet significant chain investments for thus X the supply to it's ready the well. able But continues perform Asia. ago chain we where be Europe today. well, the And and years team are they're U.S. demand and in extremely X importantly, to And far made

next from comes The Jefferies. with Matt question Taylor

Two we in could talk One when And materiality the about to expansions, I your is, talk the what you look questions. about could like when on those can follow indication could actually and small see wanted the them in you up mentioned AGENT U.S.? Japan? commentary. you

launched not saw the was very adopted lot Just it double-digit growth quickly in we in whole of it new Japan. maybe they leading Japan that year strong and and it's really very, to last quarter. the But in a color

that expansion, indication you Stein, do one? to Dr. want take of terms In

Yes, I bifurcation lesions. Matt. Again, strategy indications first that. on about think Still looking probably through think working new the regulatory small vessel would be for we

of you a So would line not prepared any time to work. when we for give that initiate

The next Barclays. question comes from Matt with Miksic

what the in one of of cadence on sort the great. get color expect year the RHYTHMIA FARAPULSE kind this and would plays U.S. into as rest you be navigation how we into the adoption maybe Any that. follow-up quarters Just of can for the for

not here. Probably too much Matt. Thanks, commentary new

the FARAPULSE given resource-wise, and doctors developing strong and -- install, in very high support think in to we're capabilities the for train that it's it. U.S., I scale up able really we're -- on our overall, obviously we strong demand continue relationships those EPs that as And put of have we and that. experience. of to expand lot with given there CRM focus are lot a our And a we WATCHMAN experience

to planning accounts. up lot new every executing training the open and a it's day So resource and field of in

mapping. gave commentary on the Dr. some Stein

our to use existing workflow using maybe accounts many don't their don't accounts some system. optimal driving are away. intend they're when today, force mapping to customers and move we And mapping So

do as mapping using the in what will be seen based Dr. benefits on do we've mentioned, productivity there clinical incremental -- think navigation we However, Stein that. and system, gains with we our

hospitals we through So be of there mapping anticipate and year see But to want but the benefits competitors, it. the Stein an today choose with with RHYTHMIA in benefit second from FARAPULSE increase because enhanced enhanced we the to would half as orders we system -- this works starting really we have go and Dr. RHYTHMIA we ours. mapping are clinical FARAPULSE mentioned, will expect orders, as excellent correct some

just verify, question? to there for one time is last And

Yes, please. Drew. We'll one take more,

from come Polark Research. will with That Wolfe Michael

commentary, the in charges, margin to the capital nature going increased the the ask was And in other Can want I quarter. the heard gross the of quantify charges? Dan. thing I those mix quarter? you the inventory And what's What's of on? impact

if seems to I'd there's think FARAPULSE anything highly driven, that color. comment, the I else welcome but generator be it likely underneath

given it much charges, impact. Sure. in and for the called a but more the it it was an and we not used than we're has that's out why quantify to Thanks to question, We're quarter, going inventory Mike.

piece the I piece success it, of it, kind an is not of say to insignificant due will of a FARAPULSE. of

the So it's that's gross still still rest charges won't and our not inventory the XXXX. see them but inventory we it's the QX saw what se the relative into of bad But through charges year, margin the optimism kind me that and quarter. gives as confidence go per results, it in we of the in reduced heading all we at the that level to

with is well, have a really which we we as business On the IVUS we it. But related mentioned, launch also has in some to Lumenis. Mike that successful insignificantly also piece And some -- business, Urology have the not capital FARAPULSE. a of the in capital, yes, as our associated with

XX.X%, have the businesses was of but the for did with than have but probably other launch the of a more slightly capital. little XX.X% to year would overall should by of launches But respect it goal in getting other be liked, to lower some we for FARAPULSE, year that margin. led gross some or of this bit a the a have little message still back that in below So we

for get Thanks, the question Boston reach If joining right. Scientific. any interest to your everyone, hesitate don't we please or your We All in unable appreciate today. team. Relations to Investor follow-ups, if you us out were to to have

disconnect, for all you Before Drew the the you will give pertinent replay. details

at XXX-XXXX note XXXXXXX (XXX) available using X XXX-XXXX, (XXX) XX:XX X, Eastern until or recording p.m. hour by code X be will in a replay X Please either dialing Time. May XXXX,

now has presentation. for attending today's The concluded. you conference Thank

You may now disconnect.