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Boston Sci Rises Above Headwinds to Pull in Strong Quarter
Marlborough, MA-based company said on Wednesday it was able to raise its 2022 organic revenue growth expectations.
July 27, 2022
2 Min Read
Image Courtesy of Sipa USA / Alamy Stock Photo
Headwinds from the pandemic have had varied effects on large cap medtech companies. Some have struggled – wrestling with supply chain concerns; hospital staffing shortages, and the soaring costs associated with the times. Other companies have relied on a diversified portfolio – one that contains diagnostics, to help offset any outside pressures.
Boston Scientific is in a different category. The Marlborough, MA-based company said on Wednesday it was able to raise its 2022 organic revenue growth expectations.
The company reported GAAP net income available to common stockholders of $246 million or 17 cents per share (EPS), compared to $172 million or 12 cents per share a year ago, and achieved adjusted EPS of 44 cents for the period, compared to 40 cents a year ago. The revenue beat was broad-based, with growth in each region, share wins in mature markets. However, the company reduced its guidance for reported sales growth (+6.5-7.5% y/y rep. vs. prior +7-9% y/y rep.) because of 200 bps in added Fx headwinds, noted Marie Thibault, an analyst with BTIG.
Thibault said, "Commentary was more encouraging than that of other large-cap medtech peers, with management citing strong global execution during 2Q22 and calling for an acceleration in the [second half of 2022] despite hospital staffing challenges, supply chain constraints, and inflationary pressures."
The company had some significant achievements during the quarter. Boston Scientific’s most recent achievement happened a little more than a month ago, when it announced it would acquire a majority stake in M.I. Tech. Based in Korea, M.I. Tech makes medical devices for endoscopic and urologic procedures. The deal is valued at $230 million.
The firm also presented late-breaking registry data from the Italian ITAL-neo-Registry presented at EuroPCR. Data from the study supported reduced paravalvular leak (PVL) and superior performance of the ACURATE neo2 Aortic Valve System over the previous-generation valve.
Boston Scientific also unveiled late-breaking data from 54,000 patients in the NCDR-LAAO Registry at Heart Rhythm 2022. Results demonstrated that the Watchman FLX Left Atrial Appendage Closure (LAAC) Device was associated with a significantly lower (43% reduction) rate of in-hospital major adverse events compared with the previous-generation device driven by lower rates of pericardial effusion requiring intervention and major bleeding.
"We had another quarter of excellent performance, a testament to the talent of our global team, the sustainability and diversification of our innovative medical technology portfolio and our strong market positions amid continued macroeconomic challenges," said Mike Mahoney, chairman and CEO, Boston Scientific. "As we continue to execute our strategy, we have a tremendous opportunity to continue to deliver on our promise to bring life-changing devices and therapies to more patients who need them."
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