Guggenheim MedTech Disruptors Virtual Conference/media/Files/B/... · 2020. 8. 10. · Guggenheim...

Guggenheim MedTech Disruptors

Virtual Conference

Dave Pierce

Executive Vice President andPresident MedSurg

Brian Dunkin, MD

Chief Medical Officer,Medical Affairs, Endoscopy

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our business plans and product performance and impact, and the impact of the COVID-19 outbreak on the company's results of operations. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward looking statements.

Factors that may cause such differences can be found in our most recent Form 10-K and Forms 10-Q filed or to be filed with the Securities and Exchange Commission under the headings “Risk Factors” and “Safe Harbor for Forward-Looking Statements.” Accordingly, you are cautioned not to place undue reliance on any of our forward-looking statements. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which they may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements.

Market Estimates:

Unless noted otherwise, all references to market sizes, market share positions, and market growth rates are BSX internal estimates.

Non-GAAP Measures:

This document contains non-GAAP measures (denoted with *) in talking about our company’s performance. The reconciliations of those non-GAAP measures to their most comparable GAAP measures are contained within this document including appendices attached to the end of this presentation.

Financial Disclaimers:

Operational revenue growth excludes the impact of foreign currency fluctuations. Organic revenue growth excludes the impact of foreign currency fluctuations, sales from the recent acquisitions of Vertiflex, Inc. and BTG plc (BTG), each with no prior year comparable sales. Organic revenue growth also excludes the impact of the divestiture of our global embolic microspheres portfolio, a transaction entered into in connection with obtaining the antitrust clearances required to complete the BTG transaction.

Regulatory Disclaimers:

EXALT™ Model TG – Device under development. Not available for use or sale worldwide.

EXALT™ Model B – Device under development. Not available for use or sale worldwide.

SpyGlass™ DS III - Device under development. Not available for use or sale worldwide.

Safe Harbor for Forward-Looking Statements

©2020 Boston Scientific Corporation or its affiliates. All rights reserved. 2

$2.8B, +11%, +10%

2019 revenue $10.7B, 11.1% operational* growth, 7.3% organic* growth

Boston Scientific:

Category Leadership Driving Growth


Endoscopy Urology & Pelvic Health

Interventional Cardiology(incl. Structural Heart)

Structural Heart

Peripheral Interventions(incl. IM, excl. Spec Pharma)

Cardiac Rhythm

Management

Electrophysiology

Neuromodulation

High end of $700-725M guidance2

$1.4B, +19%, +8%

$1.9B, +9% $1.4B, +15%, +8%

$873M, +13%, +7%

$329M, +7%

$1.9B, +1%

Growth rates listed are operational*, organic*Endo, CRM and EP operational and organic growth rates are equivalent

World Leader in Flexible Endoscopy Devices

• Track record of consistent high performance, outpacing our markets

• Exciting growth business with several market expansion opportunities

• Clear category leadership, deep portfolio, multiple platforms

• Margins and growth rates accretive to BSX

• Targeting $3B+ in revenue by 2025

#1 SHARE POSITION


Growth Engine for Boston Scientific

MARKET BSX

SIZE GROWTH ‘19-22 est. CAGR REVENUE SHARE POSITIONGROWTH*

(operational)GROWTH*(organic)

~$5B +5% +7% $1.9B #1 +9% +9%

20

19

How Do We Define Endoscopy?


Biliary Stone and

Stricture Management

Cholangiopancreatoscopy

Esophageal Stricture

Management

Endoscopic Tissue

Resection (EMR/ESD)

Biopsy / Polypectomy

Broad Range of Endoscopy

Procedures & Treatments

Diagnostic / Therapeutic

Endoscopic Ultrasound (EUS)

Airway Obstruction

Asthma: Bronchial

Thermoplasty

Hemostasis

Colonic / Duodenal Stricture

Management


Single-Use Endoscopes

Infection Prevention

Pathology & Services

Endoluminal Surgery

Surgeon Call Point

Strengthening Category Leadership

Expanding Into High Growth Adjacencies


LegacyLeadership Businesses

Biliary & GI Therapies

Market Leading Commercial Channel Facilitating Expansion Strategy

SpyGlass™: The Gold Standard Since 2007

EXPANDING SUITE OF ACCESSORIES

2015 2019

SPYGLASS™ CONSUMABLES

IncreasedResolution32.5x


FIRST AND ONLY Minimally Invasive, Single-Use, Single Operator, Digital Cholangioscope

Compelling Outcomes

& Data

Utilization Accelerating

100,000+ patients,

66+ countries

2500+ consoles placed

Accurate, real-time diagnosis

>95% stone clearance

success rates1

Changes clinical management

in 85% of patients2

Pancreatic Duct

GroundbreakingTechnology

3RD GENERATION SYSTEM

Autolith™Touch Biliary

EHL System

SpyBite™ Max Biopsy

Forceps

SpyGlass™Snare &

Retrieval Basket

SpyGlass™ Discover Digital CatheterA Revolutionary Single-Use Endoscope


Powerful, credible move into the surgical and percutaneous endoscopy space

Unprecedented access and visualization

of the biliary and pancreatic ductsSolves problems and logistical barriers

Enables interdisciplinary communicationbetween GI, surgeon, and IR

Enables surgical planning, pathology assessment,biliary stone management and anastomosis evaluation

Complements existing GI commercial structure

Dedicated surgical

endoscopy sales force

Establishment of surgicalendoscopy training curriculum

Market acceleration through best

practices in GI medical education

Future surgical applications currently under evaluation

$600M market opportunity today

for transcystic CBDE in EU and US1,2

Exalt™ Model D Single-Use Duodenoscope


“It is unacceptable that 1 in 20 patients who

undergo a procedure using a duodenoscope may

acquire an infection”

Excerpt from Senator Patty Murray letter

to scope manufacturers, May 2019

Transitioning to a New Paradigm

A Significant Investment to Get It Right

R&D 150+ physicians consulted, 12 animal labs, 200 member development team

Clinical Exalt Dscope 01, 01B, and 02 trials

Commercial Creative integration solutions due to COVID

Exalt™ Model D Single-Use Duodenoscope


A history of biliary leadership

and successful adoption of

new technology: RX, WallFlex™

and AXIOS™

Proven Commercial Channel

• Ergonomic improvements to drive adoption

• Differentiated features to sustain leadership

• Full suite of customized devices

Commitment to Rapid Portfolio Expansion

• Clinical results, ease of use

• Significant uptick in onboarding accounts

• Hospitals promoting Exalt D to communities

Strong Product Performance

• Effective July 1st . Applicable for single-use endoscopes

such as Exalt D, for Medicare ERCP patients in the

hospital outpatient setting

• Strong society support

Transitional Pass-Through Code Approved

Building a Comprehensive Single-Use Scope PortfolioDesigned to Reduce Infection, Enhance Efficiency, and Improve Availability

EXALT™ Model TG (Therapeutic Gastroscope)800K procedures

SpyGlass™ DS III (Cholangioscope)150K procedures

21SpyGlass™ DS II (Cholangioscope)150K procedures

3LAUNCHED IN 2018

1EXALT™ Model D (Duodenoscope)1.5M ERCPs

2LAUNCHED IN 2019

EXALT™ Model B (Bronchoscope)3M procedures

$2B+ Market1

by 2024

SpyGlass™ Discover (Choledochoscope)40K procedures LAUNCHED IN 2020


Reference Slides

Supplemental Non-GAAP Disclosures

14

FY 2019 Divisional Revenue Growth compared to FY 2018 Reported Basis

Less: Impact of

Foreign Currency

Fluctuations

Operational

Basis

Less: Impact

of Recent

Acquisitions /

Divestitures

Organic

Basis

Endoscopy 7.5% (1.7%) 9.2% 0.0% 9.2%

Urology & Pelvic Health 13.4% (1.3%) 14.7% 6.3% 8.4%

MedSurg 10.0% (1.5%) 11.5% 2.7% 8.8%

Cardiac Rhythm Management (0.6%) (1.8%) 1.2% 0.0% 1.2%

Electrophysiology 5.5% (2.0%) 7.5% 0.0% 7.5%

Neuromodulation 12.0% (1.1%) 13.1% 6.3% 6.8%

Rhythm and Neuro 3.3% (1.6%) 4.9% 1.6% 3.3%

Interventional Cardiology 8.7% (2.3%) 11.0% 1.0% 10.0%

Peripheral Interventions 17.3% (1.8%) 19.1% 11.3% 7.8%

Cardiovascular 11.4% (2.1%) 13.5% 4.2% 9.3%

Medical Devices (a) 8.5% (1.7%) 10.2% 2.9% 7.3%

Specialty Pharmaceuticals (b) n/a n/a n/a n/a n/a

Net Sales 9.3% (1.8%) 11.1% 3.8% 7.3%

(a) We have three historical reportable segments comprised of Medical Surgical (MedSurg), Rhythm and Neuro, and Cardiovascular, which

represent an aggregation of our operating segments that generate revenues from the sale of medical devices (Medical Devices). As part of our

acquisition of BTG on August 19, 2019, we acquired an Interventional Medicine business, which is now included in our Peripheral Interventions

operating segment's 2019 revenues from August 19, 2019 through December 31, 2019.

(b) As part of our acquisition of BTG on August 19, 2019, we acquired a specialty pharmaceuticals business (Specialty Pharmaceuticals).

Subsequent to acquisition, Specialty Pharmaceuticals is now a stand-alone operating segment presented alongside our Medical Device reportable

segments. Specialty Pharmaceuticals net sales are substantially U.S. based. Our chief operating decision maker (CODM) reviews financial

information of our globally managed Specialty Pharmaceuticals operating segment at the worldwide level without further disaggregation into

regional results. As such, Specialty Pharmaceuticals net sales are presented globally, and our Medical Devices reportable segments regional

net sales results do not include Specialty Pharmaceuticals.

Guggenheim MedTech Disruptors Virtual Conference/media/Files/B/... · 2020. 8. 10. · Guggenheim...

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