The Marlborough, Mass.-based medical device giant, ahead of an investor presentation today in New York, said it wants to hit an adjusted operating margin of 25% this year and 28% in 2020. Boston Scientific, which has seen its fortunes turn for the better since CEO Michael Mahoney took over in 2013, also said it’s aiming for “consistent” double-digit growth for adjusted earnings per share and an organic revenue compound annual growth rate of 6% to 8% for 2018 to 2020.
“We are committed to fulfilling our promises to patients, customers and shareholders by delivering a comprehensive, innovative and cost effective portfolio of products and solutions within our served markets while also expanding into new, high growth adjacent markets,” Mahoney said in prepared remarks. “We are also focused on driving global expansion and further improving profitability so that we can invest in our future portfolio and consistently deliver long term, durable growth.”
Boston Scientific said part of the plan is to reduce its footprint in low-growth markets and add to its product line in “high-growth adjacent markets” it said would add $13 billion to its $40 billion in addressable markets by 2020. Low-growth products made up nearly 50% of its sales in 2012 but only about 40% last year, the company said, targeting the 75% mark by 2020.
“We are enhancing our long term outlook by diversifying into large high-growth markets with a differentiated portfolio and capabilities, as well as a focus on expanding outside the United States in both developed and emerging markets,” added CFO Dan Brennan. “We are executing well on our financial objectives for consistent revenue growth, adjusted operating margin expansion and top tier adjusted earnings growth.”