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A Look at Boston Scientific’s 2018 Revenue Mix

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Growth opportunity

According to Boston Scientific’s (BSX) 37th Annual J.P. Morgan Healthcare Conference investor presentation, the company expects to target opportunities worth $20 billion in new markets by 2022.

However, in 2018, the company is expected to earn less than $1.0 billion in revenue from these market segments.

The above diagram highlights the favorable shift in Boston Scientific’s revenue mix from low-growth markets to high-growth markets from 2013 to 2018.

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In 2013, the company earned ~40%, 50%, and 10% of its total revenue of $7.0 billion from low-growth, moderate-growth, and high-growth markets, respectively. In 2018, the company expects to earn ~30%, 50%, and 20% of its total revenue of $10.0 billion from low-growth, moderate-growth, and high-growth markets, respectively. In 2021, the company expects to earn ~20%, 45%, and 35% of its total revenue from low-growth, moderate-growth, and high-growth markets, respectively.

According to the investor presentation, high-growth markets are those with CAGRs (compound average growth rate) of more than 10%, while moderate-growth markets are those with CAGRs in the range of 4%–9%. Low-growth markets have CAGRs of less than or equal to 3%.

Structural heart business trends

Boston Scientific expects to report revenue of more than $475 million in its Interventional Cardiology or Structural Heart segment. The company expects to target a market opportunity worth $8 billion in 2022.

The company’s market expansion is expected to be driven by the increasing adoption of mitral repair technologies, transcatheter aortic valve replacement procedures using the ACCURATE neo and LOTUS Edge systems, and embolic protection procedures. The increasing penetration of left atrial appendage closure procedures using the company’s WATCHMAN devices across the world is also expected to expand its addressable market opportunity.

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