Boston Scientific announced its fourth quarter and full year 2023 results the morning of Wednesday, January 31. The company’s revenue for the quarter rose 15% from $3.2 billion during Q4 2022, to $3.7 billion. For the full year 2023, the company generated net sales of $14.2 billion, growing 12% over the $12.7 billion generated during full year 2022.
For Q1 2024, Boston Scientific expects sales to increase 7% to 9% on an organic basis. The company’s first-quarter sales guidance is impressive as its stock hit a record high. Boston Scientific’s stock jumped a little more than 3% from $61.43 to $63.47 in afternoon trades on the stock market the day of the announcement.
According to data captured in the LevinPro HC database, Boston Scientific reported one acquisition during 2023. The company announced in September its acquisition of Relievant Medsystems, medical technology company that has developed and commercialized the Intracept® Intraosseous Nerve Ablation System to treat vertebrogenic pain, a form of chronic lower back pain. The transaction included an upfront cash payment of $850 million and undisclosed additional contingent payments based on sales performance over the next three years.
Boston Scientific surpassed its fourth quarter expectations, driven by strong sales in its cardiac and medical-surgical divisions. This can be attributed to a 44% growth in Q4 2023 global net sales of electrophysiology, a type of test that examines the heart’s electrical activity, as well as a 23% increase in Q4 2023 global net sales of WATCHMAN, an implantable device that permanently closes an appendage in the heart to lower the risk of strokes. The company attributed ending the year with just more than 90% market share to WATCHMAN. ACURATE neo2 is another device that was discussed frequently internally and by physicians, yet was overlooked by analysts.
Boston Scientific already kicked off 2024 with a deal, acquiring Axonics, a global medical technology company that is developing and commercializing novel products for adults with bladder and bowel dysfunction. Axonics generated net revenue of $273.7 million for FY 2022, and adjusted EBITDA of $1.6 million. It was purchased for $71 in cash per share, representing an equity value of approximately $3.7 billion. Boston Scientific has made 10 deal announcements since 2008, nine of which were announced after September 2021, according to LevinPro HC.
Fellow Medical Device company Stryker Corporation announced its earnings late on Tuesday, January 30, also posting positive Q4 and full year results. The company’s stock surged nearly 8% by Wednesday afternoon. So far, despite an 11% decrease in Medical Device M&A activity from 2022 to 2023, it’s looking to be a good earnings season for the Medical Device sector.
