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Boston Scientific Corporation (NYSE:BSX), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $157 billion, announced on Wednesday that it will discontinue global sales of its ACURATE neo2™ and ACURATE Prime™ Aortic Valve Systems. The decision follows recent discussions with regulatory bodies, which have led to increased clinical and regulatory requirements to maintain and gain approvals in various markets. The company has determined that the additional resources and investments required to meet these new standards are not feasible. According to InvestingPro data, 21 analysts have recently revised their earnings estimates upward for the upcoming period, suggesting confidence in the company’s overall strategic direction.
Despite this development, Boston Scientific expects to meet its previously issued guidance for the second quarter and full year of 2025 regarding reported and organic sales and adjusted earnings per share. While the company is not currently reaffirming its GAAP EPS guidance for the same periods and plans to provide further details during its second quarter earnings call, InvestingPro analysis shows the company maintains a "GREAT" financial health score, with robust revenue growth of 19.36% over the last twelve months. For deeper insights into BSX’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The discontinuation of the ACURATE valve systems is anticipated to have financial impacts, but Boston Scientific believes it can manage these effects while still achieving its financial targets for 2025. The company’s forward-looking statements indicate that, although they are based on current beliefs and assumptions, actual results may differ materially due to various risks and uncertainties.
This news comes from an 8-K filing by Boston Scientific with the SEC, reflecting the company’s latest strategic decisions and expectations for future financial performance. The information is based on the company’s assessment as of the date of the report and is subject to change.
In other recent news, Boston Scientific has reported strong financial results, showcasing a significant 20% year-over-year organic day-adjusted revenue growth for the first quarter of 2025, along with a 34% increase in earnings per share. The company has raised its sales and earnings forecast for the year, expecting a year-over-year sales increase of 15% to 17% and earnings per share ranging from $2.87 to $2.94. Analysts from Erste Group have initiated coverage with a Buy rating, reflecting confidence in the company’s innovative products and optimistic outlook. Additionally, Moody’s Ratings has upgraded Boston Scientific’s ratings to A3, citing the company’s strong operating performance and revenue growth.
In the realm of clinical trials, Boston Scientific announced positive outcomes from the second phase of the ADVANTAGE AF trial, which examined the FARAPULSE Pulsed Field Ablation System for treating persistent atrial fibrillation. The trial met all primary safety and efficacy endpoints, with 73.4% of patients remaining free from atrial fibrillation and related conditions after 12 months. RBC Capital Markets has responded to these developments by raising the stock’s price target to $120, maintaining an Outperform rating due to Boston Scientific’s robust performance and ability to navigate macroeconomic challenges.
Furthermore, Canaccord Genuity has reiterated its Buy rating with a price target of $117, highlighting Boston Scientific’s exceptional first-quarter performance and growth in its Electrophysiology segment. The company plans to address the anticipated $200 million impact from tariffs through increased organic sales guidance and strategic spending cuts. These developments underscore Boston Scientific’s ongoing innovation and strategic financial management, positioning it for continued growth in the medical technology sector.
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