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How Much Can Boston Scientific Revenues Grow Over The Next Three Years?

Boston Scientific (NYSE:BSX) generates its revenue primarily from sales of medical devices, and it reports revenues under three segments – Cardiovascular, Rhythm & Neuro, and MedSurg. Its largest segment in terms of revenues is Cardiovascular, which accounted for 38% of total revenues in 2018. In this note we discuss the revenue segments of Boston Scientific, their historical performance, and expected trajectory over the next two years. You can view our interactive dashboard analysis ~ BSX Revenues: How Does Boston Scientific Make Money? ~ for more details on the key drivers of the company’s expected performance.  In addition, you can see more of our data for Healthcare companies here.

Cardiovascular Is The Largest Segment For Boston Scientific.

  • Boston Scientific generates its revenues primarily from three segments ~ MedSurg, Cardiovascular, and Rhythm & Neuro.
  • MedSurg division comprises of medical devices designed and manufactured for Endoscopy, and Urology & Pelvic Health.
  • Cardiovascular division comprises of products designed for interventional cardiology and peripheral inventions.
  • Rhythm & Neuro segment primarily includes Cardiac Rhythm Management (Pacemakers and Defibrillators) products that are used to treat abnormal heart conditions, along with Neuromodulation products, which include stimulator systems used for spine and brain related conditions.

Boston Scientific Business Model

  • What Need Does It Serve?
    • Boston Scientific primarily serves the medical devices market. These medical devices are used primarily by various healthcare institutions in over 125 countries.
    • The company reports its revenues under three segments, Cardiovascular, which includes devices for Interventional Cardiology and Peripheral Interventions, Rhythm & Neuro, which includes devices for Cardiac Rhythm Management, Electrophysiology and Neuromodulation, and MedSurg, which includes devices for Endoscopy and Urology & Pelvic Health.
  • Who Pays To Boston Scientific?
    • Hospitals, clinics, outpatient facilities, medical offices in around 100 countries in the U.S, Europe, Japan, and Asia Pacific.
  • Who Are The Competitors For Boston Scientific?
    • Other companies that manufacture medical devices, include Abbott Labs, Johnson & Johnson, Medtronic, and Intuitive Surgical among others.

Boston Scientific’s Total Revenue Has Grown 33% (2014-2018), And It Could Grow Another 19% By 2021.

  • Boston Scientific’s total revenues grew from $7.4 billion in 2014 to $9.8 billion in 2018.
  • This represents an average annual growth rate of 7.5%.
  • We forecast the revenues to be around $11.7 billion by 2021, reflecting an average annual growth rate of 6.0%.

All Segments Will Likely See Steady Revenue Growth In Coming Years

  • Cardio & Neuro revenues grew from $2.9 billion in 2014 to $3.8 billion in 2018, and it is estimated to be $4.4 billion in 2021. The growth in the recent past was led by Eluvia DS launch in the U.S., and Eluvia sales should continue to drive the future growth, as physicians continue to endorse Eluvia.
  • MedSurg segment revenues grew from $1.9 billion in 2014 to $3.0 billion in 2018, and it will likely grow to $3.7 billion in 2021. This growth will likely be led by higher sales in the endoscopy business, which is seeing strong demand for Resolution 360 Clips, SpyGlass DS Direct Visualization System, as well as Acquire Endoscopic Ultrasound Fine Needle Biopsy Device.
  • Rhythm & Neuro revenues grew from $2.6 billion in 2014 to $3.0 billion in 2018, and it will likely grow to $3.6 billion by 2021. The segment will likely benefit from continued growth in Neuromodulation and Electrophysiology, primarily led by Spectra WaveWriter Spinal Cord Stimulator (SCS) Systems, and Vercise deep brain stimulation platforms, which allows the combination of multiple treatment options in a single device.

 

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