No Rumors Here: Boston Sci Crushes 1Q23 Earnings

26 Apr 2023
www.mddionline.com
AcquisitionDrug ApprovalIPO
A few days ago, Boston Scientific became a major topic of conversation when it was rumored the firm was interested in acquiring Shockwave Medical.
Now the Marlborough, MA-based company is on everyone’s minds again as it has just reported stellar earnings.
The firm sees the 2023 fiscal year adjusted earnings per share of $1.90 to $1.96 compared to the prior guidance of $1.86-$1.93 vs. the Wall Street Estimate of $1.91.
The company estimates FY23 sales growth of about 8.5%-10.5% on a reported basis compared to 5%-7% expected earlier and about 8%-10% organically vs. 6%-8% expected earlier.
Boston Scientific reported 1Q23 revenue of $3.4 billion up 12% when compared to this time last year. Strong revenue was driven by strength across all franchises and regions, with double-digit organic sales growth in each business unit and double-digit operational growth across all geographies.
Urology, Cardiology, and EMEA were significant bright spots in 1Q23. In an earnings call, Boston Scientific’s Chairman and CEO Mike Mahoney went into specifics as to why cardiology was a significant driver of revenue for the quarter.
“Cardiology delivered another excellent quarter with operational sales growing 17% and organic sales growing 15% vs. first quarter 2022, “Mahoney said, according to a Seeking Alpha transcript of the earnings call. “Within cardiology, interventional cardiology therapies sales grew 13%.”
Mahoney added, “Watchman sales grew 29% organically vs. first quarter 2022. Demand remains very strong for Watchman and we now have treated more than 300,000 patients globally since launch.”
The Watchman is a Left Atrial Appendage Closure (LAAC) technology. Boston Scientific inherited the Watchman technology in 2011 when it acquired Atritech for $100 million-plus milestones of up to $275 million. The technology was approved by FDA in 2015.
Another topic of note that came up during the call was the rumored interest in acquiring Shockwave Medical, a pioneer in the development of Intravascular Lithotripsy to treat severely calcified cardiovascular disease.  Analysts asked about the news of a potential acquisition of the Santa Clara, CA-based company – albeit in a roundabout way.
Mahoney responded to the question by saying, “As a matter of practice, we never comment on rumors or speculation in the marketplace,” according to a Seeking Alpha transcript of the call.
In research notes, BTIG Analyst Marie Thibault wrote the “M&A speculation [was] not fully laid to rest.” She also commented on the company’s 1Q23 earnings saying this was a solid start.
“We continue to see several product platforms like Farapulse, Polarx, Baylis, and recent acquisitions that will serve as near-term and mid-term growth drivers,” Thibault wrote. “This appears to be another year of solid beats and raises.”
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