Boston Scientific Q2 2025 Earnings Report

Boston Scientific EPS Results

• Actual EPS: $0.75
• Consensus EPS: $0.72
• Beat/Miss: Beat by +$0.03
• One Year Ago EPS: $0.62

Boston Scientific Revenue Results

• Actual Revenue: $5.06 billion
• Expected Revenue: $4.89 billion
• Beat/Miss: Beat by +$167.40 million
• YoY Revenue Growth: +22.80%

Boston Scientific Announcement Details

• Quarter: Q2 2025
• Date: 7/23/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, July 23, 2025
• Conference Call Time: 8:00AM ET

Boston Scientific (NYSE:BSX) develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through two segments, MedSurg and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, direct visualization systems, digital catheters, and single-use duodenoscopes; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, artificial urinary sphincter, laser system, fiber, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator system, proprietary programming software, radiofrequency generator, indirect decompression systems, practice optimization tools, and deep brain stimulation system. It also provides technologies for diagnosing and treating coronary artery disease and aortic valve conditions; WATCHMAN FLX, a Left Atrial Appendage Closure Device; and implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, such as cardioverter and cardiac resynchronization therapy defibrillators, MRI S-ICD systems, cardiac resynchronization therapy pacemakers, quadripolar LV leads, ICD leads, pacing leads, remote patient management systems, insertable cardiac monitor systems, and remote cardiac monitoring systems. In addition, the company offers diagnosis and treatment of rate and rhythm disorders of the heart; peripheral arterial and venous diseases; and products to diagnose, treat and ease forms of cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.

Boston Scientific Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: For Q2, organic sales rose 17% and adjusted EPS was $0.75, beating guidance, and full-year organic growth guidance is raised to 14–15% with EPS now $2.95–2.99.
• Positive Sentiment: The WATCHMAN franchise grew 28% globally, driven by expanding concomitant procedure adoption (60% of EP implanters) and soon-to-be-launched next-generation devices.
• Positive Sentiment: EP revenue surged 94% thanks to PFA leadership with the FerriPulse system, expanded labeling for persistent AF and early-stage mapping and focal-catheter rollouts.
• Negative Sentiment: Discontinuing the Accurate Valve led to ~$100M inventory charges and $130M impairment, and updated tariffs now pose a ~$100M headwind, partially offset by favorable mix and cost controls.
• Positive Sentiment: Acquisitions of Sonove V and Entera Medical bolster future growth platforms in renal denervation and interventional oncology, supporting long-term differentiated revenue streams.

Presentation

[Operator]

Good morning, and welcome to the Boston Scientific Second Quarter twenty twenty five Earnings Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Lauren Tengler, Vice President, Investor Relations. Please go ahead.

[Lauren Tengler, VP - IR at Boston Scientific]

Thank you, Drew, and thanks to everyone for joining us today. With me on today's call are Mike Mahoney, Chairman and Chief Executive Officer and John Monson, Executive Vice President and Chief Financial Officer. During the Q and A session, Mike and John will be joined by our Chief Medical Officer, Doctor. Ken Stein. We issued a press release earlier this morning announcing our Q2 results, which included reconciliations of the non GAAP measures.

[Lauren Tengler, VP - IR at Boston Scientific]

The release as well as reconciliations of the non GAAP measures used in today's call can be found on the Investor Relations section of our website. Please note that on the call, operational revenue excludes the impact of foreign currency fluctuations and organic revenue further excludes certain acquisitions and divestitures for which there are less than a full period of comparable net sales. For more information, please refer to the Q2 financial and operational highlights deck, which may be found on the Investor Relations section of our website. On this call, all references to sales and revenue are organic and relative growth is compared to the same quarter of the prior year unless otherwise specified. This call contains forward looking statements regarding, among other things, our financial performance, business plans, product performance and development.

[Lauren Tengler, VP - IR at Boston Scientific]

These statements are based on our current beliefs using information available to us as of today's date and are not intended to be guarantees of future events or performance. If our underlying assumptions turn out to be incorrect or certain risks or uncertainties materialize, actual results could vary materially from those projected by the forward looking statements. Factors that may cause such differences are discussed in our periodic reports and other filings with the SEC, including the Risk Factors section of our most recent annual report on Form 10 ks. Boston Scientific disclaims any intention or obligation to update these forward looking statements, except as required by law. At this point, I'll turn it over to Mike.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Thanks, Lauren, and thank you, everyone, for joining us today. Our second quarter results outperformed our expectations, led by our Cardiovascular segment, closing a phenomenal first half to 2025. In second quarter twenty twenty five, total company operational sales grew 22% and organic sales grew 17%, which exceed the high end of our guidance range of 13% to 15% and far outpacing our underlying weighted average market growth rate. Second quarter adjusted EPS of $0.75 grew 23%, also exceeding the high end of our guidance range of $0.71 to $0.73 inclusive of charges related to the worldwide discontinuation of our Accurate Valve. Second quarter adjusted operating margin was 27.6%.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Turning to our third quarter and our full year 2025 outlook, we're guiding to organic growth of 12% to 14% for third quarter twenty twenty five and raising our full year guidance from 12% to 14% to 14% to 15%, reflecting the momentum across our global businesses. Our third quarter adjusted EPS guide is $0.70 to $0.72 and we now expect our full year adjusted EPS to be $2.95 to $2.99 representing growth of 18% to 19%, inclusive of updated assumptions for tariffs and impact related to Accurate. John will provide more details within the financial section. I'll now provide some additional highlights on the quarter. Regionally, on an operational basis, The U.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

S. Grew 31%, driven by our category leading and broad based cardiovascular portfolio. Europe, Middle East, Africa grew 2% on an operational basis and 7% excluding the discontinuation of our Accurate Valve. As a reminder, the vast majority of the $200,000,000 in Accurate revenue was generated in EMEA. Within EMEA, growth within the quarter was led by double digit growth for FerriPulse, WATCHMAN and Complex PCI.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Asia Pacific grew 15% operationally, led by strong double digit growth across our largest markets in the region. Japan, China and Australia. Japan grew high teens driven by Feripulse, which has moved into the leading position in PFA with over 15,000 patients treated since launch in Japan, supported by new account openings and the launch of Fairwave Nav. China also returned to mid teens growth in the second quarter with diversified growth across businesses led by FerriPulse and IVUS. We expect this mid teens growth to continue in China in the second half of the year.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

I'll now provide some additional commentary on our business units. Urology sales grew 28% operationally and 6% organically. Growth in the quarter is driven by the stone management and prosthetic urology franchises with double digit growth in Rezum, which received expanded indication for large glands in The U. S. Within the quarter.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Integration of Vaxonics business has progressed well as we have worked through short term commercial disruption and destocking in the first half of the year. Endoscopy delivered a strong quarter, growing eight percent globally and double digits in The U. S, with global performance driven by strong growth in our anchor products, including EXALT D, Mantis, Axios and OverStitch, which saw notable growth from both ESG and closure procedures. In the second half of the year, we expect continued high single digit growth led by our proprietary technologies and strategic partnerships globally. Neuromodulation sales grew 7% in the quarter with mid teens growth in our brain franchise, led by continued adoption of the Cartesia XHX leads and Illumina three d in The U.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

S, both of which drive optimized patient outcomes. The pain franchise grew mid single digits led by strong double digit growth in INTERCEPT, which surpassed 50,000 patients treated with our innovative technology backed by robust clinical evidence. Cardiology delivered another outstanding quarter with sales growing 28%. Within cardiology, interventional cardiology therapy sales grew 9% and excluding Accurate grew very strong double digits. For the second half of twenty twenty five, we expect an approximate 800 basis point impact to iCTX growth in the second half from the discontinuation of ACURATE.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Coronary therapy's high teens growth was driven by agent DCB and our global imaging portfolio, buoyed by additional support from the U. S. Coronary societies upgrading intravascular imaging to a Class Ia recommendation for complex lesions, further validating its clinical value. In The U. S, agent DCB growth accelerated with new account openings and strong reorders, supported by confidence in long term reimbursement with permanent CPT-one codes established in the quarter that will go into effect in January 27.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

We continue to invest in expanding our portfolio and are pleased with the progress of our fracture trial, studying the BOLT IVL system in coronary patients, which is expected to complete enrollment by the first half of twenty twenty six. Additionally, we closed the acquisition of Sonybee in the second quarter, which continued to enroll in the Thrive IDE, a global randomized and sham controlled study designed to demonstrate the effectiveness and safety of the Tyvas system in hypertensive patients. Cardiac Rhythm Management sales grew 1%. In Q2, our diagnostic franchise grew low double digits, fueled by strong growth of our LuxDx ICM device, with our latest generation LuxDx II launching in Europe in the quarter. In core CRM, our low voltage business declined low single digits and our high voltage business is roughly flat for the year.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

In the second half, we do expect contribution from our expanded conduction system pacing portfolio in The U. S. And Europe and anticipate FDA approval of the Empower leadless pacemaker by year end. WATCHMAN grew 28% in this quarter, reflecting continued concomitant uptake in The U. S.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

And the strong safety profile of our latest generation WATCHMAN FlexPro, which recently received CE Mark. We continue to invest in further in the LAAC market, including the development of our fourth generation WATCHMAN device, which we anticipate initiating the IDE trial for next year. We continue to see considerable physician interest in concomitant procedures with over sixty percent of WATCHMAN implanting EPs in The U. S. Having performed a concomitant procedure.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Recently, we enrolled our first patient in the Option A trial, studying concomitant use of WATCHMAN and FerriPulse in Asia. We also received expanded labeling for WATCHMAN as a first line therapy in post ablation patients in The U. S. Following the positive option data, supporting continued confidence in our long term outlook. Electrophysiology sales grew 94%, lapping our first full quarter of the FerroPulse launch in The U.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

S. And growing mid teens sequentially, supported by accelerated placements of the Opel mapping system, our portfolio of access solutions and uptake of concomitant procedures. Global momentum continued through the quarter, driven by the safety, predictability and versatility of the Ferrapulse device, particularly in de novo AFib ablations for paroxysmal and persistent AF, which we recently received expanded labeling in The U. S. We anticipate CE Mark as well as approval in Japan and China for this expanded labeling in the coming months.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

We continue to invest in clinical evidence to expand the served patient population with our FerriPulse technology, including the recent initiation of the REMATCH AF trial, designed to study FerroWave and FerroPoint in redo persistent AF patients, which currently represent approximately one third of AF ablations. Also within the quarter, we announced positive twelve month primary endpoint results from the second phase of the ADDvantage AF trial, which will be used to support approval of the FerroPoint PFA catheter as an adjunct technology to treat atrial flutter in patients with persistent Afib, which we expect to receive by year end 2025. Peripheral Intervention sales grew 17% operationally and 7% organically. Our interventional oncology and embolization franchise grew strong double digits, led by our broad embolization and cancer therapies portfolio. In the quarter, we closed acquisition of Entera Medical, strengthening our interventional oncology portfolio by adding a complementary therapy to expand our offerings to treat both primary and metastatic forms of liver cancer.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Within our vascular franchise, we saw low single digit growth in arterial with low single digit drug eluting growth driven by our participation in the China VBP, which we anticipate will result in our ability to serve more patients across China. In venous, we did see strong double digit growth led by continued strength in Varathena and notable growth in Ecos, particularly internationally. We continue to be pleased with the integration of Silk Road, which we expect to improve growth in the second half of the year, driven by a stabilization and investment of the commercial team. In closing, I'm very proud of the commercial execution of our high performing global team and both in the near and long term growth catalyst across our businesses, which we look forward to sharing more details at our upcoming Investor Day on September 30 in New York City. With that, I'll hand over to John to provide more details on the financials.

[Jonathan Monson, EVP & CFO at Boston Scientific]

Thanks Mike. Second quarter consolidated revenue of $5,061,000,000 represents 22.8% reported growth versus second quarter twenty twenty four and includes a 120 basis point tailwind from foreign exchange, which was favorable versus our expectations. Excluding this $50,000,000 foreign exchange tailwind, operational revenue growth was 21.6% in the quarter. Sales impact from closed acquisitions contributed four twenty basis points, resulting in 17.4% organic revenue growth, exceeding our second quarter guidance range of 13 to 15%. Q2 twenty twenty five adjusted earnings per share of $0.75 grew 23% versus 2024, exceeding the high end of our guidance range of $0.71 to $0.73 primarily driven by our strong sales performance in the quarter.

[Jonathan Monson, EVP & CFO at Boston Scientific]

Adjusted gross margin for the second quarter was 69.4%, representing a 100 basis point decline versus the 2024 driven by the negative impact from inventory charges related to the worldwide discontinuation of our Accurate Valve. Based on the current schedule of expected tariffs, we now anticipate a full year headwind of approximately $100,000,000 down from our approximate $200,000,000 estimate that we provided on our Q1 earnings call. We continue to expect full year adjusted gross margin to be roughly in line with 2024. Second quarter adjusted operating margin was 27.6%, expanding 50 basis points versus the second quarter of twenty twenty four, driven by strong drop through on our top line performance and smart spend controls offsetting the charges related to Accurate. On a GAAP basis, second quarter operating margin was 16.2%.

[Jonathan Monson, EVP & CFO at Boston Scientific]

Moving to below the line, second quarter adjusted interest and other expenses totaled $110,000,000 slightly unfavorable to our expectations. On an adjusted basis, our tax rate for the second quarter was 12.6%, which includes favorable discrete tax items. Our operational tax rate was 14.2% for the second quarter. Fully diluted weighted average shares outstanding ended at 1,494,000,000.000 shares in the second quarter. Free cash flow for the second quarter was $1,129,000,000 dollars with $1,286,000,000 dollars from operating activities less $157,000,000 in net capital expenditures.

[Jonathan Monson, EVP & CFO at Boston Scientific]

We now expect full year 2025 free cash flow to be approximately $3,500,000,000 As of 06/30/2025, we had cash on hand of $534,000,000 And during the quarter, we are pleased to receive a credit rating upgrade from Moody's to A3. And with this upgrade, we now hold single A minus equivalent credit ratings from all three major agencies. Our gross debt leverage ratio was 2.1 times. Our top capital allocation priority remains strategic tuck in M and A and high growth adjacencies followed by share repurchases. And in alignment with this strategy, we recently closed the acquisitions of Sonae V and Entera Oncology, which complement our existing interventional cardiology and peripheral interventions businesses respectively.

[Jonathan Monson, EVP & CFO at Boston Scientific]

Our legal reserve was $300,000,000 as of June 30 with $47,000,000 of this reserve already funded through our qualified settlement funds. I'll now walk through guidance for Q3 and full year 2025. We now expect full year 2025 reported revenue growth to be in a range of 18% to 19% versus 2024. Excluding an approximate 50 basis point tailwind from foreign exchange based on current rates, we expect full year 2025 operational growth to be in a range of 17.5 to 18.5%. Excluding a three fifty basis point contribution from closed acquisitions, we expect full year 2025 organic revenue growth to be in a range of 14% to 15% versus 2024.

[Jonathan Monson, EVP & CFO at Boston Scientific]

We expect third quarter twenty twenty five reported revenue growth to be in a range of 17% to 19% excluding an approximate 50 basis point tailwind from foreign exchange based on current rates. We expect third quarter twenty twenty five operational growth to be in a range of 16.5% to 18.5%. Excluding an approximate four fifty basis point contribution from closed acquisitions, we expect third quarter twenty twenty five organic revenue growth to be in a range of 12% to 14%. Based on our first half margin performance, we now expect to expand full year adjusted operating margin by 75 to 100 basis points, while increasing our level of investment in R and D to fuel durable differentiated revenue growth. We now expect full year 2025 adjusted below the line expense to be approximately $440,000,000 Under current legislation, including enacted laws and issued guidance, we forecast a full year 2025 operational tax rate of approximately 14% and an adjusted tax rate of approximately 12.5%.

[Jonathan Monson, EVP & CFO at Boston Scientific]

For 2026, we had previously forecasted a 200 basis to 300 basis point headwind to our tax rate, driven by changes to certain provisions scheduled under the TCJA. With the recent passage of the OBBB, this anticipated headwind has largely been eliminated. We'll share more specific 2026 tax rate guidance on our Q4 twenty twenty five earnings call. We expect full year 2025 adjusted earnings per share to be in a range of $2.95 to $2.99 representing growth of 18% to 19% versus 2024, including an approximate $04 headwind from foreign exchange. We expect third quarter adjusted earnings per share to be in a range of $0.70 to $0.72 In closing, I'm pleased with our strong second quarter financial performance and look forward to executing on our full year guidance of 14% to 15% organic revenue growth, 75 to 100 basis points of adjusted operating margin expansion and 18% to 19% adjusted earnings per share growth.

[Jonathan Monson, EVP & CFO at Boston Scientific]

For more information, please check our Investor Relations website for Q2 twenty twenty five financial and operational highlights, which outlines more details on Q2 results and 2025 guidance. And with that, I'll turn it back to Lauren, who will moderate the Q and A. Well done, Jill. Thank you, Mike.

[Lauren Tengler, VP - IR at Boston Scientific]

Thanks, John. Drew, let's open up for questions for the next thirty five minutes or so. In order for us to take as many questions as possible, please limit yourself to one question and one related follow-up. Please go ahead.

[Operator]

We will now begin the question and answer session. The first question comes from Robbie Marcus with JPMorgan. Please go ahead.

[Robert Marcus, Senior Analyst at JPMorgan Chase]

Great. Good morning and congrats on another fantastic quarter here.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Thanks, Robbie.

[Robert Marcus, Senior Analyst at JPMorgan Chase]

Two for me, kind of intertwined, so it is a related follow-up. Maybe to start though, the WATCHMAN number was just phenomenal, plus 30 in The U. S, 28 worldwide, big acceleration. I imagine a lot of that is coming on the back of option and concomitant. But maybe just speak to the durability of that, the breadth and depth of usage that's driving it and what you're hearing in the field just as we think about going into Champion next year, which could be another leg of growth for this franchise?

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Yes. I'll make some initial comments, and Ken can certainly add more detail to it. We're really pleased with the results in the quarter at 28%. And you also saw some good news in the script there. Have WATCHMAN FLEXPRO approvals outside The U.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

S. And over the next LRP period, we aim to get more contributions outside The U. S. Than we currently do today with that device, which has proven to be so safe and effective in The U. S, which is really the reliability and the trust that the physician community and referring physicians have in that device, along with our clinical and sales team is driving that.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

And obviously, the continued investment in clinicals that you've noted on your comments there. Concomitant, as we've said in previous calls, is really a breakthrough opportunity for hospitals, physicians and patients to be able to use the WATCHMAN device and the safety and efficacy profile combined with Verapulse and the same really superior safety and efficacy profile versus the competition. And the ability to do that in the same procedure has proven to be very valuable and we're maximizing it as best we can commercially. Looking forward, we continue to believe that this category could in the 20% plus 20 range as it continues to scale larger and larger each quarter. And we'll provide you more updates at Investor Day in terms of our programs on our next generation valve and continued focus on clinical studies.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

Yes, Robbie, I don't have too much to add to that, right. Again, I think it's the positive data from OPTION. We've been very pleased to see the uptake of concomitant procedures. As Mike said on the call earlier, right, sixty percent of our UP implanters are already adopting the use of concomitant procedures. It's a win for everyone.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

It's better for patients. It's clearly safer, easier for them. It's a win for hospitals as well. We do look forward presenting the CHAMPION data at a major conference first half of next year. I do think it's just important to say that it will take time for all of that to play out.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

We were very pleased to get the updated label from the option to be used as first line therapy in patients post ablation. But it still will take time for reimbursement to catch up to that updated label. And again, even once we present the data from Champion, we'll still take time for those data if they're positive to make their way into national coverage decision and into society guidelines.

[Robert Marcus, Senior Analyst at JPMorgan Chase]

Great. Maybe just a follow-up on that, John, the gross margin missed the street, but some eagle eyed people noticed there's $130,000,000 write down from the accurate exit, which is two sixty basis points for the quarter, which would have put you in a great position, big year over year beat and beat versus the Street. Maybe just speak to the drivers of that. How much of that is new products versus underlying improvements and how we should think about sort of that underlying gross margin ex tariff through the rest of the year? Thanks a lot.

[Jonathan Monson, EVP & CFO at Boston Scientific]

Yes. Thanks, Robbie. And maybe a couple of points. Maybe first to the Eagle eyed folks. So the 01/1930, the Accurate discontinuation impacted a number of different areas of the P and L.

[Jonathan Monson, EVP & CFO at Boston Scientific]

Within the adjusted P and L, we had some inventory charges and sales returns reserves related to Accurate. That totaled, call it, approximately $100,000,000 Then we also had restructuring and intangible asset impairment charges that impact the GAAP only P and L. So that's the 130,000,000 that was in the appendix of our operational highlights that the Eagle eyed folks picked up. So as far as our adjusted gross margin, roughly $100,000,000 impact there from the accurate charges. Importantly, really pleased to see that we're able to offset that through the strong sales performance that you heard Mike go through as well as strong spend control to make sure that we offset the impact there and through the full P and L and delivered the strong EPS performance that you saw in the quarter.

[Jonathan Monson, EVP & CFO at Boston Scientific]

And so looking forward, Robbie, we expect gross margin for the year to be roughly flat. So we have the impact of tariffs, the impact which are now roughly $100,000,000 is our estimate, the impact of those accurate charges, the roughly $100,000,000 that I just talked about being offset predominantly by favorable mix. You saw the WATCHMAN numbers. FerriPulse continues to perform, as you can see very well for us. That's accretive to our gross margin.

[Jonathan Monson, EVP & CFO at Boston Scientific]

So have those two items that we didn't anticipate at the start of the year with the accurate charge and tariffs being a large headwind, but mix offsetting that largely to get to flat for the year as our expectation for gross margin.

[Robert Marcus, Senior Analyst at JPMorgan Chase]

Great. I appreciate it. Thank you very much.

[Operator]

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

[Lawrence Biegelsen, Senior Medical Device Equity Research Analyst at Wells Fargo]

Good morning. Thanks for taking the question. I'll echo Robbie's congratulations. So for Mike or Doctor. Stein, maybe talk about the growth vectors for your EP business, market growth, PFA adoption, new geographies, new products, etcetera.

[Lawrence Biegelsen, Senior Medical Device Equity Research Analyst at Wells Fargo]

How would you have us think about these pieces and what your AP business could look like in three to five years? And any color on the proposed ASC codes and what they could mean for you? Thanks for taking the question.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

Yes, Larry. It's little bit all of the above and we will get a lot deeper into that as you say that long range plan look at our Investors Day. I think sort of the again the quick answer beyond it's all of the above is, it's continued market growth in The United States. As you look at the safety profile with FARAWAVE, it's sort the predictability of the cases, as you look at efficacy, the accumulating data now actually for superior outcomes compared to thermal ablation. Very pleased with what we're seeing internationally.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

Again, as Mike mentioned in the script, over 15,000 cases have already been performed in Japan, where even though we were third to the market, we are already the clear leaders in PSA. Very pleased with the adoption that we're seeing to date of our Faravu product, Opel, our Farrowwave Nav catheter. And you mentioned the ASC, the proposed rule, in The United States from CMS, which would allow ablations to be performed in the ASC. If that's finalized, we see that as an advantage for us. We do think that we are uniquely positioned to take advantage of procedures in the ASC.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

And again, it gets to the safety, it gets the predictability, but also gets to some of the economic advantages using FaroWave with FaroView compared to the competition.

[Lawrence Biegelsen, Senior Medical Device Equity Research Analyst at Wells Fargo]

The

[Operator]

next question comes from Joanne Wuensch with Citibank.

[Joanne Wuensch., Managing Director at Citi]

I'm going to add my congratulations. I'd like to pivot a little bit to the med surg business. I think that gets overlooked a fair bit. Solid high single digit revenue growth across the segments. What would you like to highlight in there?

[Joanne Wuensch., Managing Director at Citi]

And what do you think we may be missing? Thank you.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Hi, Joanne. Thanks for the question. I would say, one, I want to highlight Endoscopy. The U. S.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Business grew double digits, well above the market, grew 8% globally. That's despite some headwinds that we've talked about in the past with some low cost scope competitors in Asia and Europe, which our team has really done a nice job of addressing. So we anticipate some of that headwind being mitigated as we look to 2026. So despite that really strong performance in Endo, as you know, a high margin business for us as well. Also pleased to see the enhancement improvement in Neuromodulation.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

The team there grew strong double digits in DBS. And the Relievin acquisition has been integrated extremely well and really providing that strong accretive growth to the company and a wider solution for paying physicians. And we continue, I would say, to have improved momentum in spinal cord stimulation. The team made a number of commercial changes over the past year or so, and that team is starting to come together and strengthening. So we anticipate continued momentum with that neuromodulation business over the horizon.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

And our urology business is a fantastic franchise. It's grown a little bit under what we typically expect them to deliver. And we signaled that at the end of the first quarter call, given some supply chain constraints that we're working through that will get better in the second half of the year and also some low cost competition again that the team is addressing very proactively. The Axonics integration is a super important integration for the franchise and for the company. In the first half of the year there, we really worked through some commercial model changes, some turnover, which we anticipated, and that team has now kind of re strengthened.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

We also had quite a bit of stocking that we had to work through in the first half of the year. So we anticipate improvement in the Axonics growth in the second half of the year and a very strong 2026 for Axonics. So overall, MedSurg performed well. And hopefully, that color was helpful to you.

[Joanne Wuensch., Managing Director at Citi]

It is. Thank you.

[Operator]

The next question comes from Rick Wise with Stifel. Please go ahead.

[Rick Wise, Managing Director at Stifel Financial]

Good morning, Mike. Hi, everybody. Maybe just start us off if you would by thinking about the ASC setting and how it sets up growth for next year. And help us think through one thing. Obviously, in the hospital, you're seeing very strong concomitant attachment rates or uptake rates.

[Rick Wise, Managing Director at Stifel Financial]

The PFA moves to the ASC, I don't think that concomitant would be as prevalent. Help us think through those moving pieces and is this still is ASC a net positive given maybe potentially lower WATCHMAN implants? Just help us think through all that if you would.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

Yes. Thanks, Rick. And it's a really nuanced point that you're raising. So I'll give you our view on it. And let me just start maybe with the upshot.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

We still do see it as a positive. What you need to think about are really two things. One is the pace at which procedures are going to move out into the ASC. And again, this is a proposed rule assuming that it gets approved. There will be, if not a step change into the ASC.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

Today, there are approximately 20 states in The Union where there are not CON, it's different of need or other regulations that would limit docs from opening an ASC, makes up approximately 40% of the market. But the other 30 states, the other 60% of the market, it's a much more gradual ability to build out into the ASC. I think the other thing that's important here is even once you have an ASC, physicians are going to be thoughtful in asking who are the patients where you do the procedures in the ASC versus who are the patients where you still opt to do it in a hospital setting, whether it's an inpatient or an outpatient basis in the hospital. And so our anticipation would be that you begin, right, by taking the simplest patients. So de novo paroxysmal afib that you start with the patients who are the least frail and those are the opposite of the patients, right, who are candidates for the concomitant procedure or watching it.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

The younger you are, the less comorbidities you have, the lower your risk for stroke. And so at the outset, again, it'd be our anticipation that folks begin with the easier, simpler, more straightforward cases. And those are just not patients who would have had concomitant procedures anyway. And it'll just take time to start moving more complex procedures out into the ASC. So again, net sum, we absolutely see the ASC as a positive for us.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

Gets back to what I said earlier to Larry, We really see ourselves as having really important differentiated advantages based on the entire FirePulse ecosystem as this transition begins.

[Rick Wise, Managing Director at Stifel Financial]

Okay. Thanks for that. As a follow-up, Mike, maybe you could expand a little bit on your thoughts about Sanofi with the deal now closed. How do we think about this? Is renal denervation here now given the recent approvals?

[Rick Wise, Managing Director at Stifel Financial]

Is this just BOSTON fly by initial checkout of the RDN scene and waiting for things to evolve? And maybe just share with us so you can just are there key clinical timelines or data or FDA timing? Just help us help level set us here. Thank you so much.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Sure. Thanks, Rick. We like we really like where we're positioned with hypertension. So we've liked the market for a while. As you know, we had a previous RF product that we discontinued a number of years ago.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

We absolutely feel that the ultrasound technology is will be preferred. We have to prove it in a clinical trial, over radio frequency in terms of its effectiveness and safety profile. So we really like the technology of Sony V. We made an investment in that company and we acquired it, I guess, closed in early first quarter. So we closed recently.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

So it's the technology that we had been watching for quite a while, and we jumped on that and acquired it prior to this reimbursement decision. So our timing really was nice there. And we're quite we're early in our clinical trial. So we won't be first to market. There'll be two others.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

But our timing of anticipated approval, which we'll outline more at Investor Day, isn't that far behind. And given the relationships that we have in this marketplace, what we think is a platform that has enhanced features and benefits over the current generations, we think we'll be well positioned to take advantage of this market over the LRP and beyond. And I think this market certainly could become a multibillion dollar market over time, not overnight. And I think given that market TAM opportunity, given the growth that we'll see, but it will still need additional key milestone takedowns on reimbursement, commercial coverage and so forth. So this market has the potential to be quite large over time.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

And our positioning with the device that we have, I think could make this very disruptive for us assuming we have a positive clinical trial and the market develops.

[Rick Wise, Managing Director at Stifel Financial]

Thanks, Mike.

[Operator]

The next question comes from David Roman with Goldman Sachs. Please go ahead.

[David Roman, Managing Director at Goldman Sachs]

Thank you. Good morning, everybody. I hoping we could dive a little bit deeper into the evolution of the EP portfolio because clearly you've seen strong adoption on FerroPulse. But as we look at both indication expansion and new product launches, it would actually seem like there's quite a bit of runway yet to go here. So maybe we could just kind of think about where you've had adoption so far, most likely in de novo, PBIs, maybe some use in persistence.

[David Roman, Managing Director at Goldman Sachs]

You're accelerating your investment in mapping. FerroPoint should be coming at some point later this year, early next year. I don't think you have an ICE catheter yet. You have the Bayless portfolio. So can you maybe help us think about where you are in kind of capturing the totality of the EP market from a procedure and indication perspective?

[David Roman, Managing Director at Goldman Sachs]

But then also as you think about the disposables used in an EP case, where you are in capturing the totality of the opportunity there? Then I had one P and L follow-up.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

Yes, David. And I'll just begin. Again, it's everything you just said. Strategy has always been to aim for category leadership and category leadership includes everything you just talked about. I think first off, just in terms of today's usage of FerroPulse, as Mike mentioned in the script, right, pleased to have gotten the indication expansion into persistent Afib as well as paroxysmal Afib.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

To be frank, we were already seeing a very large amount of use in persistent population already. One of the great things about FaroWave is just how really elegantly, beautifully it's suited for doing going beyond just pulmonary vein isolation and using posterior wall ablation as well. And we've been very impressed already by seeing just how many physicians have adopted that as the predominant workflow that they're using. I think it's a very important message, right, that PVI alone is really not sufficient to address the majority of patients who are getting ablated with atrial fibrillation today. Gets into moving into the mapping, as I said earlier, we've been very pleased with the uptake of FaroView on the Opel system.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

But it also does involve us having the complete toolkit. So involves solutions, which we acquired when we acquired Baylis. We do have an ice catheter under development, but more on that at Investor's Day. And then we do have a full portfolio of additional ablation catheters. One thing I'd like to point out, Farrowwave is already we already got a second generation PFA catheter on the market before most of our competitors have a proven first generation catheter on the market.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

We'll have continued iteration of Farah Wave platforms. We still anticipate approval of our Farah Point catheter second half of this year. We have a so called large focal or MAP and Ablate catheter, FerraFlex that's already in its first human use trials, very pleased with how that's progressing. And I think maybe the sum here is, we're not one and done with Farah Wave. We've got an absolute commitment to continuing to iterate both in terms of ablation catheters, but also in terms of the entire ecosystem around it.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

And the other thing I'll add to that besides the widening of the portfolio, which is what Ken talked about, which we have a lot of investment in internally and through our BC portfolio and partners, is also regional growth. As Ken mentioned, we're third to market in Japan. Now we're the clear market leader in Japan. The Japanese market will benefit from the persistent label that will be coming in the second half of this year. So that should further strengthen and we continue to roll out mapping systems there.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

We're very, very early days in China, which is a very, very big market for us. So a lot of emphasis on that. So we put a lot of time and attention in this. We not only want to be the clear leader in PFA, but our aim is to be the overall leader in EP in the future.

[David Roman, Managing Director at Goldman Sachs]

Thank you. I appreciate all the perspective. And maybe just on the P and L, John, I think if you go back to Q1, you talked a little bit about a slower start to the year on OpEx. This quarter, I think you utilized OpEx as a way to offset what looks to be like a $06 headwind ish from the dynamics with Accurate. Are you at a point now where given the top line, it's becoming more challenging to spend all the upside and that we should start to see more operating leverage or is there something more deliberate going on in OpEx?

[Jonathan Monson, EVP & CFO at Boston Scientific]

Thanks, David. You hit the dynamics pretty well for the second quarter or first quarter. Say in the second quarter, there was some holdback on OpEx and investment back into the business. As you recall, as we started the quarter on April 2, we had the updates on tariffs. And then midway through the quarter, we announced the Accurate discontinuation.

[Jonathan Monson, EVP & CFO at Boston Scientific]

So a bit of a holdback on OpEx in Q2, which was important to offset the accurate charge that we stepped through earlier. So then as we move into the second half of the year, a couple of dynamics there. We'll see the tariff impact really take hold approximately $100,000,000 which predominantly impacts the second half of the year. And then we do anticipate continuing to reinvest back into the business to drive differentiated revenue growth for the near and long term. So that's the focus of the company.

[Jonathan Monson, EVP & CFO at Boston Scientific]

So I'd expect to see R and D tick up a bit in Q3 and in the second half of the year, a lot we're excited about across the portfolio there. And we'll likely look to invest across the commercial team and make some commercial investment as well with launch activity going on to continue to drive the growth that we're seeing. So on the whole, I'm really pleased with the 75 to 100 basis points of op margin expansion that we're expecting for the year and think we're doing a nice job of balancing drop through to the bottom line and op margin expansion with reinvestment back into the business. And I think you'll see more of that in the second half here.

[David Roman, Managing Director at Goldman Sachs]

Excellent. I appreciate all the perspective. Thank you.

[Operator]

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

[Travis Steed, MD - Equity Research at Bank of America]

Hey, everybody. Congrats on a good quarter. I guess kind of before later this year, you're going to updating the LRP at the Analyst Day, but just kind of bigger picture, how you kind of see the pluses and minuses shaking up over the next few years versus the last couple of years. And your weighted average market growth now is kind of approaching 10%. And so just think about the confidence and to continue to kind of outgrow your markets as you've kind of always done historically.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Well, I think that's we have like half a day with you at Investor Day to talk about your question. So nothing as breakthrough here, but our goal is to continue to improve our weighted average market growth rate through our organic portfolio, choices we make in our venture and our M and A, which we've done over many, many years. So we anticipate that to continue. The same time, we expect our leaders to grow faster than the markets. Not every division, every region does it every quarter, but the majority of them do.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

So we have a strong track record of growing faster than our weighted average market growth rate. And we are as John mentioned, we are enhancing our R and D spend, and we have many a number of important shots on goal to drive differentiated growth over the next five years. And we'll talk a lot about that at Investor Day.

[Travis Steed, MD - Equity Research at Bank of America]

Great. Thank you. And then John, just quickly on the tax rate with some of the new legislation that came out and if there was any kind of update on how you're thinking about the tax rate going forward?

[Jonathan Monson, EVP & CFO at Boston Scientific]

Yes. So we previously, Travis, as you know, expected a 200 to 300 basis point headwind to the tax rate under the TCJA and certain rates there that were set to increase in 2026 and beyond under that now old legislation. Under the OBBB with new rates that were established there and other provisions that headwind has largely gone away. So that's the impact to Boston Scientific from the new tax legislation. As we get to the normal course and the Q4 earnings call, we'll update on our specific guide for tax for 2026.

[Jonathan Monson, EVP & CFO at Boston Scientific]

But that was for the team here, good outcome from the recent legislation.

[Travis Steed, MD - Equity Research at Bank of America]

Great. Thank you.

[Operator]

The next question comes from Michael Pollard with Wolfe Research. Please go ahead.

[Mike Polark, Medical Supply & Devices Analyst at Wolfe Research, LLC]

Hey, good morning. I have one on Medicare rulemaking. Another thing that came out during rate season was the physician fee for LAA was proposed down 16%. Year on year, the societies came out against this. There's so much going right in that business with Watchman, FormFactor Innovation, concomitant champion ahead.

[Mike Polark, Medical Supply & Devices Analyst at Wolfe Research, LLC]

How much of a challenge does this present, if any? And do you agree with Medicare's math?

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

Yeah, Mike. We certainly think payment ought to be appropriate, the amount of work that's involved in doing a procedure. And I'd say, my concern, as someone who's done procedures is whether they are really appropriately valuing the complexity of the decision making that's involved in managing these patients. We certainly are committed to giving the medical societies support that they need from us to help mitigate any impact of this proposal. I think frankly in terms of impact on growth, I still firmly believe docs are going to do the right thing for patients and are going to pick the most clinically appropriate treatment.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

When it comes to something as important as preventing stroke, I'd be very hopeful that this kind of a reimbursement cut, if it does persist into the final rule, still will not prevent patients from getting the treatments they need.

[Mike Polark, Medical Supply & Devices Analyst at Wolfe Research, LLC]

Thank you.

[Operator]

The next question comes from Danielle Antalffy with UBS. Please go ahead.

[Danielle Antalffy, Analyst at UBS Group]

Hey, good morning, everyone. Thanks so much for taking the question. And I'll add to everyone's congratulations on another very strong quarter. Just two questions for me. Number one, on WATCHMAN and FerriPulse and asking the question from another direction and that's capacity, which I appreciate the recent approval in the ASC, that's definitely helpful.

[Danielle Antalffy, Analyst at UBS Group]

But a lot of these EPs are also doing WATCHMAN procedures. Yes, now they can do it concomitantly. But at what point do we start to see capacity be an issue? And I guess the or are you seeing that yet? And then the follow-up question is related to that.

[Danielle Antalffy, Analyst at UBS Group]

You guys have said you're still pretty early in the FerriPulse launch broadly I mean, you're year end, but you're still not getting into the sort of lower volume centers. Have you guys started to get into these lower volume centers? Are you seeing previously pretty low volume centers doing higher volumes at this point because now they have access to this device that democratizes ablations? Thanks so much. Sure.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Hi, Danielle. Thanks for the question. I'd say just on capacity, really no difference versus previous comments. Thankfully, the procedure is very safe to ferro Pulse, WATCHMAN or concomitant. It's a very safe and effective, albeit complex procedure that docs have a lot of confidence in.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

The hospitals do a good job of knowing the predictability and time allotment for these procedures because they've done a lot of them. So they're able to better plan. We don't like the post reimbursement cuts for physicians. However, on the hospital side, these are strong procedures in terms of profitability for hospitals. So we do see some hospitals investing more and more in adding additional labs, and potentially prioritizing as best they can for these types of procedures.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

So today, don't see a big constraint. There's still a pretty healthy backlog across most centers for WATCHMAN, FERIPOLSE or concomitant, which is which I guess is a good sign for the future. And as Ken talked about earlier, this ASC potential ruling, which go into effect in 2026, if it all goes through, we see about '20 states in The U. S. That potentially could act on this that don't have certificate of needs that would represent about 40% of the AFib volume.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

So that won't happen overnight, but over time, you'll see more and more of the, PVI, posterior wall, these types of procedures moving more to ASC, which will provide some additional capacity. So I think the ASC ruling will help with the capacity and we continue to work on technology solutions to drive better procedure time, more productivity in concomitant procedures. There was a second part of the question. Lower volume centers? Lower volume centers, for sure.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

We have put the majority of focus in Europe and U. S. And Japan on the highest volume centers for obvious reasons. But as we continue to expand the rollout in Europe, primarily in U. S.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

And Japan, we are moving into some smaller centers as we continue to scale our commercial capabilities and our clinical footprint.

[Operator]

And I understand there's time for one last questioner.

[Lauren Tengler, VP - IR at Boston Scientific]

That's right.

[Operator]

That will come from Matthew O'Brien with Piper Sandler. Please go ahead.

[Matt O'Brien, Senior Research Analyst at Piper Sandler Companies]

Good morning. Thanks so much for squeezing me in. Maybe I think Mike talked about the concomitant percentage, about sixty percent of all procedures now or all of your doctors have done at least one concomitant procedure. How has that trended over maybe the last six to twelve months, especially following the option readout? And then I do have a quick follow-up.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

Maybe I would just to clarify that. So the sixty percent is of electrophysiologists who do WATCHMAN implants. And of course, it's a mix of interventional cardiology, structural heart physicians, as well as electrophysiologists who do these procedures. But of the EPs who do the procedures, who are also the ones who do ablation, right. Sixty percent of EPs who have been WATCHMAN implanters have already jumped onto the concomitant bandwagon.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

Now, I think just in terms of understanding sort of where the growth there is, right. Remember, although some folks were doing concomitant procedures, even before CMS established the unique DRG to pay for it, really we only have reimbursement at the hospital level for concomitant beginning October. And then the option data was only released in November. So right, this is all still a very new phenomenon. And we still see physicians needing to understand how do you adapt into workflow.

[Kenneth Stein, SVP & Global Chief Medical Officer at Boston Scientific]

So sequentially still seeing important growth in the concomitant procedure.

[Matt O'Brien, Senior Research Analyst at Piper Sandler Companies]

Okay. Yeah, know. Thanks for that Doctor. Sain. I know we're early days there.

[Matt O'Brien, Senior Research Analyst at Piper Sandler Companies]

I guess the follow-up question would really be kind of dovetailing off of David Roman's question about the breadth of the portfolio that you have here in mapping now with concomitant with obviously best in class product with WATCHMAN by a mile. Just your ability because I know a big concern that investors have is just competition coming in. You've got some established competitors with big mapping footprint out there. So just your ability to kind of defend yourself or just said another way, the most you're building here between Opel, all the catheters plus concomitant cases, How wide is that moat in your opinion and how much wider can it get?

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

Well, we continue to aim to be, as I mentioned, the clear PFA leader and we aim to be the number one overall in EP as we widen that portfolio. I think a good testament is what happened in Japan. We're a third to market in Japan without a persistent label indication, which our competitors had. And now we're the clear leader in Japan, and we'll be adding persistent label to it. So we do feel like we have some unique advantages that are highly differentiated with FerriPulse and Ken detailed out and you'll see at Investor Day quite a bit how we're widening the portfolio for and then plus the underlying market growth is nearly 20% right now.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

And clearly that will slow down over time, but it will still be likely mid teens growth and the largest fastest growing market in medtech. There wasn't a question on this, but I feel like I want to call out our interventional cardiology team. Our ICTX business is one of our largest businesses in the company and no questions on it today. And most companies don't talk about coronary therapies, they think of drug living stents. But it's a great example of a business unit that and our team focused on this across all of our business units, on moving into faster weighted faster markets and having unique technology backed by clinical support.

[Michael Mahoney, Chairman, President & CEO at Boston Scientific]

And our coronary therapies business this year I'm sorry, this quarter grew high double digits, which is pretty unique for coronary therapies. And given the size of that business and a lot of that's being driven by our imaging business, which continues to enhance and the execution of our agent DCB in terms of its clinical study, the positive coverage decisions we've received execution of that commercially. So I think it's a good example of how our business units revamped their portfolio within their own businesses and you have a business now in what's considered a very slow market growing strong double digits.

[Lauren Tengler, VP - IR at Boston Scientific]

Thank you for joining us today. We appreciate your interest in Boston Scientific. If we were unable to get to your question or if you have any follow ups, please don't hesitate to reach out to the Investor Relations team. Before you disconnect, Drew will give you all of the pertinent details for the replay. Thanks, everyone.

[Operator]

Thank you. Please note a recording will be available in one hour by dialing either 704-0529 or 8 using replay code 776-4505 until 07/30/2025 at 11:59 p. M. Eastern Time. The conference has now concluded.

[Operator]

Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Lauren Tengler, VP - IR
• Michael Mahoney, Chairman, President & CEO
• Jonathan Monson, EVP & CFO
• Kenneth Stein, SVP & Global Chief Medical Officer

Analysts

• Robert Marcus, Senior Analyst at JPMorgan Chase
• Lawrence Biegelsen, Senior Medical Device Equity Research Analyst at Wells Fargo
• Joanne Wuensch., Managing Director at Citi
• Rick Wise, Managing Director at Stifel Financial
• David Roman, Managing Director at Goldman Sachs
• Travis Steed, MD - Equity Research at Bank of America
• Mike Polark, Medical Supply & Devices Analyst at Wolfe Research, LLC
• Danielle Antalffy, Analyst at UBS Group
• Matt O'Brien, Senior Research Analyst at Piper Sandler Companies