Analysts remain high on Boston Scientific
(NYSE: BSX)
after a visit to the company’s Marlborough, Massachusetts headquarters.
BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang say in a report that they rate Boston Scientific as a “Buy.”
The analysts met with Art Butcher, EVP and group president, MedSurg and Asia Pacific, and Jonathan Monson, CFO, during their visit. Following the meetings, the analysts continue to expect growth through a number of product launches and global expansion.
“We heard more detail on various MedSurg products, went deeper on [Boston Scientific’s] APAC strategy, and discussed the company’s capital allocation priorities,” the analysts said. “We continue to think that [Boston Scientific] has one of the most comprehensive R&D pipelines and VC portfolios in medtech. With many near-term catalysts to come, we think the company is well-positioned for durable growth.”
Farapulse pulsed field ablation, Watchman remain ‘largest growth drivers’
According to the analysts, Boston Scientific aims to become the top player in the electrophysiology space. It currently battles Medtronic and Johnson & Johnson MedTech in the pulsed field ablation (PFA) market, with Medtronic’s recent quarterly results highlighting significant growth from its PFA platform.
“Pricing has been stable and the company intends to continue innovating to maintain its market leader status in PFA even as competitor systems come to market,” the analysts wrote.
Future launches include the Farapoint and Faraflex features of the Farapulse system. Farapoint, a new catheter, is expected to launch by the end of this year. Faraflex, a mapping and PFA catheter, remains in the pipeline as well, with ongoing clincial trials.
Watchman FLX is Boston Scientific’s left atrial appendage closure (LAAC) device. It reduces the risk of thromboembolism from the LAA in patients with non-valvular AFib. The company continues to report growth there as well, with patients scheduled for Watchman procedures proactively asking for ablations, the analysts say. The company has pushed to deliver the two offerings in concomitant procedures.
Analysts also note Boston Scientific’s direct-to-consumer (DTC) efforts to drive growth there, while the company also looks abroad. Farapulse and Watchman launches in China remain in the early stages, but the company expects increased adoption across the Asia Pacific region (APAC).
“[Boston Scientific] believes they have a long runway ahead for both Farapulse and Watchman growth in Japan,” the analysts said. “Management noted that they have already started to see a shift away from its PFA competitors as a result of the recent Japanese label expansion to persistent AF.”
Upcoming catalysts
The analysts highlighted a range of future catalysts still set to arrive by the end of this year or next year. Those include, in 2025, expected FDA approval for its Empower leadless pacemaker and mCRM system, as well as the FDA approval of Farapoint.
Boston Scientific also expects to begin a limited release of its above-the-knee (ATK) intravascular lithotripsy (IVL) system by the end of this year. It added the system to its portfolio through the acquisition of Bolt Medical, pitting it against IVL leader Shockwave Medical, part of Johnson & Johnson following a $13.3 billion acquisition in 2024. Other companies, such as FastWave Medical, Vantis Vascular and AVS are making waves in IVL, too.
Other future catalysts include, but are not limited to:
- Completed enrollment in the FRACTURE IDE study evaluating coronary IVL technology.
- The launch of below-the-knee peripheral IVL in 2026.
- Next-generation Farawave, Cortex integration, HD mapping catheter and integrated ICE catheter through a partnership with Siemens Healthineers, all in 2027.
- The launch of the next-generation Agent drug-coated balloon in 2027.
- The launch of the next-generation Watchman Elite and a concomitant sheath in either late 2027 or early 2028.
The rest of the Boston Scientific businesses
The analysts also note significant changes in the company’s Neuromod segment, including a leadership overhaul and salesforce restructuring. Boston Scientific aims for category leadership with this business, leading with spinal cord stimulation (SCS). The addition of the Intracept procedure from Relievant Medsystems and, eventually, peripheral nerve stimulation through its acquisition of Nalu Medical.
Analysts project a full launch of the next-generation Intracept early next year, as it’s currently in a limited launch. The company also plans to launch a new SCS platform by the end of 2026, featuring new hardware, a new waveform and software enhancements.
In Endoscopy, the analysts expect boosts from the company’s planned Versatile Controller launch in 2026 for Pancreaticobiliary. In Endobariatrics, management pointed to the Apollo OverStitch system as a driver, as it can work in conjunction with GLP-1s for weight loss.
For Urology, the company plans to launch the Asurys fluid management system in 2026. It marks the final component for the StoneSmart system for endourology procedures.
Elsewhere, the company continues to target M&A and investments, both internally for R&D and in VC opportunities, to drive innovation.
“Strategic tuck-in M&A remains [Boston Scientific’s] top capital allocation priority,” the analysts said. “Some of [Boston Scientific’s] recent acquisitions have been relatively early stage, allowing incorporation of the new products into the manufacturing network so that they can launch quickly at scale after regulatory approval. [Boston Scientific] also briefly touched upon their VC portfolio, which consists of ~45 companies in high-growth adjacencies with eventual acquisition the primary objective.”
