Boston Scientific lifts annual profit view on steady heart devices demand

Medical devices are seen at Ochsner Medical Center in the New Orleans suburb of Jefferson, La., on Tuesday, Aug.11, 2021. (AP Photo/Stacey Plaisance)

Boston Scientific raised its annual profit forecast on Wednesday, after strong demand for its heart devices helped the U.S. medical device maker beat second-quarter profit estimates.

Shares of the Massachusetts-based company rose 2.3 per cent in premarket trading following the results.

A rise in surgical procedures has benefited medical device manufacturers such as Boston Scientific, as it boosted sales and helped offset broader concerns about healthcare spending pressures.

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Analysts said hospital utilization trends were robust during the second quarter, with hospital checks pointing to high single-digit volume growth - well above the historical average.

Boston Scientific’s main growth drivers, Farapulse and Watchman, which use short high-voltage pulses to treat certain abnormal heart rhythm conditions, saw strong demand during the quarter.

Farapulse, approved in the U.S. to treat certain patients with intermittent atrial fibrillation, competes with Johnson & Johnson’s Varipulse and Medtronic’s PulseSelect in the market for pulsed field ablation (PFA) systems.

“Cardiovascular end-markets remain robust,” Truist analyst Richard Newitter said ahead of the earnings, adding that Boston, followed by Medtronic, are in the best position at the moment to benefit from the growing and accelerating PFA market.

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Rival Johnson & Johnson last week posted strong medtech sales, aided by its heart devices, Varipulse and Trupulse.

Boston Scientific expects 2025 adjusted profit of US$2.95 to US$2.99 per share, up from the prior view of US$2.87 to US$2.94 earlier.

It posted adjusted profit of 75 cents per share for the second quarter, topping analysts’ average estimate of 72 cents, according to data compiled by LSEG.

The company’s cardiovascular unit reported quarterly sales of US$3.34 billion, surpassing estimates of US$3.20 billion.

Revenue came in at US$5.06 billion for the quarter, topping estimates of US$4.9 billion.

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Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shreya Biswas