According to BSX's Q3 2023 Financial Disclosure, Boston Scientific is earning 323mm USD in revenue per quarter with an organic growth rate of 23% over the prior year with their WATCHMAN implant. At scale, we estimate the production cost of the WATCHMAN implant is de minimus; therefore, it is reasonable to assume BSX's gross profit margin is more than 90%. $323mm per quarter or $1.292Bannually = a before-tax profit of $1.162B at a 90% EBITDA margin. After making some assumptions for SG+A and taxes, BSX may earn a net profit margin of 60% or $775m in bottom-line earnings contribution after tax.
LAAC Treatment Cardiovascular Market
The demand for Left Atrial Appendage Closure(LAAC) treatment for stroke prevention, is the fastest growing cardiovascular market, now expected to exceed $2B in 2024.
Serviceable Available Market (SAM)
5 million Americans suffer from atrial fibrillation. It is estimated that 35-37.5 million patients globally suffer from atrial fibrillation.90% of stroke causing clots that come from the heart are formed in the LAA. This population is 5x more likely to have a stroke. They also are at a 5x greater risk of heart failure than their peers.