On February 21, 2025, Boston Scientific (NYSE: BSX) announced that its fully funded subsidiary, American Medical Systems Europe B.V. ("AMS Europe"), has priced a total of 1.5 billion euros (approximately RMB 11.377 billion) in notes (a type of bond issuance). The funds obtained from this issuance, along with the company's cash on hand, will be used for debt repayment, working capital, and potential future acquisitions.

As of February 21st, Boston Scientific's latest stock price is $104.49 per share, with a total market value of $154 billion, reaching its highest point since going public.

01. Issuing bonds worth billions, PFA's performance skyrocketed by 172%
The notes issued this time consist of two transactions, one with a total principal of 850 million euros and an interest rate of 3.000%, due in 2031; The other principal amount is 650 million euros, with an interest rate of 3.250%, due in 2034. The bill will be fully and unconditionally guaranteed by the company.

This issuance is expected to end on February 26, 2025, subject to customary closing conditions. The company intends to use the net proceeds from this issuance, along with cash on hand, to repay AMS Europe's 0.750% senior notes due on March 8, 2025, and to pay accrued and unpaid interest related to such notes, as well as for general corporate purposes, which may include short-term investments. Reduce short-term debt, provide funding for working capital and potential future acquisitions.

Shortly before the issuance of this note, Boston Scientific announced its Q4 and full year 2024 results. According to Mike Mahoney, Chairman and CEO of the company, "2024 is one of the best years in Boston Scientific's history, thanks to our innovative product portfolio, FARAPULSE ™ The launch of pulsed field ablation systems and significant clinical achievements and commercial excellence across businesses and regions

For the full year of 2024, the company's net sales were $16.747 billion, with a 17.6% increase in net sales based on financial reports, an 18.5% increase in operations, and an organic growth of 16.4%. The company report states that GAAP net income attributable to Boston Scientific common stockholders was $1.853 billion, or $1.25 per share, compared to $1.57 billion, or $1.07 per share, in the same period last year. Adjusted earnings for three shares for the full year were $2.51, compared to $2.05 a year ago.

In the fourth quarter of 2024, the company reported net sales of $4.561 billion. Compared with the same period last year, the company's sales based on financial reports increased by 22.4%, which is higher than the company's forecast range of 16.5% -18.5%; Operating sales increased by 23.1%; Organic net sales increased by 19.5%, exceeding the company's forecast range of 14% -16%.

Mahoney stated during the earnings conference call that the Farapulse pulsed electric field ablation system has achieved "significant" growth and pointed out that Farapulse has achieved over $1 billion in global sales within a year.

As a growth engine, its electrophysiological business achieved a year-on-year growth rate of up to 172% in the fourth quarter of 2024.

According to Mahoney's presentation at this year's JPMorgan Healthcare Conference, by 2024, approximately 20% of atrial fibrillation cases worldwide will be treated with PFA. The company expects this proportion to soar to 60% by 2026.

In addition to the US market, Boston Scientific plans to increase promotion efforts in China and Japan in the future. And it is expected that this business will maintain a high growth rate of around 20% for at least three years.

02. Achieve two billion dollar acquisitions in the short term, and acquire the world's only TCAR minimally invasive platform for 1.18 billion dollars.
In September 2024, Boston Scientific completed the acquisition of Silk Road Medical for approximately $1.18 billion, expanding its products and services in the vascular medical field. It is reported that Silk Road's product is the only commercially available minimally invasive surgical device for transcranial revascularization (TCAR), used to treat patients with carotid artery disease.
This platform can temporarily reverse the direction of blood flow when patients need stents to clear plaque blocked blood vessels, thereby directing potentially dangerous blood clots away from the brain and reducing the risk of stroke.

The core technology of TCAR system platform - ENROUTE ® The Transcranial Nerve Protection System was approved by the US Food and Drug Administration (FDA) in 2015 and is currently the only commercially available minimally invasive surgical device for TCAR.

During the surgery, the doctor makes a small incision in the neck, inserts a tubular sheath, and connects it to the ENROUTE neuroprotective system to temporarily reverse blood flow and prevent plaque shedding. Subsequently, the doctor will place a stent at the site of obstruction to stabilize the plaque and achieve long-term stroke prevention.

3.7 billion US dollars, laying out sacral nerve regulation
In November 2024, Boston Scientific announced the completion of its $3.7 billion acquisition of Axonics, a manufacturer of sacral nerve stimulation therapy.

Axonics is known for its neuroregulatory system and has always been seen as a strong competitor to Medtronic. At present, the penetration rate of the global sacral nerve regulation market is significantly insufficient. Medtronic currently holds a dominant position in this field, with Axonics holding a 27% market share.

The company has developed the world's first rechargeable sacral nerve regulation system for treating bladder and intestinal dysfunction, allowing patients to control symptoms without the need for medication. It is the first company in the world to overcome the challenge of miniaturization of implantable electrode stimulation devices. Axonics R15, the third-generation rechargeable device launched by Axonics in 2021 ™ Charging once a month for about an hour each time and replacing every 15 years is a significant improvement in the existing product technology in this field.

Overactivity of the bladder (OAS) and fecal incontinence have significant impacts on quality of life, mental health, sleep, productivity, and social activities. And SNM therapy is a minimally invasive surgery used to treat OAB and fecal incontinence. Its working principle is to transmit gentle electrical pulses to the sacral nerves to restore communication between the brain and bladder.

Source: http://qixieke.com/Font/index/detailPage.html?id=3359-19