Michael F. Mahoney
Chairman, President and Chief Executive Officer at Boston Scientific
Thanks, Lauren, and thank you to everyone for joining us today. We're very pleased with our second quarter performance and our strong outlook for the full year, supported by our innovative portfolio, commercial execution, clinical evidence and strategic tuck-in M&A. In the second quarter 2022, total company operational sales grew 10% versus prior year, while organic sales grew 7% despite a strong comp of 9% organic growth in second quarter 2021 versus 2019. Our sales results exceeded the high end of our guidance range of 3% to 6%. Importantly, we continue to grow faster than our peers in most of our businesses and regions. Second quarter adjusted EPS of $0.44 grew 9.6% versus prior year, again, exceeding the guidance range of $0.41 to $0.43. Second quarter adjusted operating margin was 25.2%, which is in line with expectations. We anticipate more durable and consistent procedural growth for the remainder of the year as hospitals continue to manage through staffing challenges and COVID waves. Our first half revenue performance was 8.1%, and we anticipate growth to accelerate in the second half.
And therefore, we are increasing our full year 2022 guidance for operational growth from 10.5% to 11.5%, and organic growth to plus 8% to 9%. For third quarter 2022 revenue, we're guiding to operational growth of 10% to 12% and organic growth of 8% to 10%. We aim to improve operating margins in 2022. However, with the ongoing impact of supply chain challenges, we are updating our adjusted operating margin to 26% to 26.2% for the full year as a result of FX volatility and additional supply chain-related operating margin pressure. We are narrowing our full year 2022 adjusted EPS guidance to $1.74 to $1.77. Our third quarter 2022 adjusted EPS estimate is $0.43 to $0.45, and Dan will provide more details on both of these sales and EPS performance in the outlook. I'll now provide some additional highlights in the quarter along with comments on our 2022 outlook. Regionally, the U.S. delivered operational growth of 7% versus prior year, and sales in the quarter included a transient impact from the contrast dye shortage primarily impacting our coronary therapies, WATCHMAN and PI business.
In Europe, Middle East, Africa, our business grew 12% on an operational basis versus prior year. We had excellent broad-based growth across the EMEA region with five of eight business units posting double-digit growth. Key products in emerging markets within the region are driving growth across the portfolio, with particular strength in electrophysiology, WATCHMAN and interventional cardiology therapies. In Asia, we grew 11% operationally versus prior year. We're quite pleased with the overall performance of the region despite the impact of COVID and related public health measures within China, with notable performance in Japan, India and our ASEAN countries. We continue to make progress with new products and commenced the first WATCHMAN FLX cases in China, Korea, Singapore and Malaysia. The China team executed well in a very tough environment, growing 9% and performing in line with our expectations.
We remain confident in the team's ability to drive double-digit growth for the full year 2022, supported by our diversified portfolio and commercial execution. Latin America grew 33% operationally versus prior year, and all eight business units in the vast majority of countries grew double digits in the quarter. Urology and Pelvic Health organic sales grew 7% and 16% on an operational basis versus prior year. Globalization continues to be a focus with 44% growth within emerging markets driven by new and ongoing product launches, such as LithoVue and SpaceOAR, in key countries, with momentum continuing with the recent approval of the Tria Firm Ureteral Stent in China. We continue to be pleased with the Lumenis integration and execution of the global [Technical Issues] Turning to Endoscopy. Sales grew 6% organically versus prior year. Broadly, this diverse business continues to perform well with products like our innovative AXIOS Stent, the only stent indicated for transgastric and transduodenal access.
We also continue to see strength in our single-use imaging franchise with EXALT-D expanding to new accounts and driving utilization. To further broaden our portfolio, we announced an agreement to purchase a majority stake in M.I. Tech, which includes the novel HANARO STENT technology, a family of conformable, self-expanding metal stents. This agreement is expected to close in the second half of 2022. In Neuromodulation, organic revenue declined 1% versus prior year against a very challenging year-over-year comp with the U.S. launches of WaveWriter Alpha and Vercise Genus, along with COVID procedure recovery in second quarter 2021. In pain, sales grew sequentially in second quarter with physicians excited about a robust and innovative portfolio of offerings for SCS, including WaveWriter Alpha, FAST therapy and the Cognita Practice Optimization suite of solutions. In brain, performance also improved sequentially with the U.S. launch of the Neural Navigator software for -- with STIMVIEW XT, which is our integrated imaging and programming platform developed a partnership with Brainlab.
In Cardiology, our organic sales grew 8% versus prior year and operational sales grew 12%. Within cardiology, interventional cardiology therapies organic sales grew 6% versus prior year. Our coronary therapies franchise grew mid-single digits, led by double-digit growth within our Imaging business as our AVVIGO II Guidance System moved into full launch in the U.S. Internationally, strong growth continues, driven by our innovative and comprehensive portfolio for imaging instruments in treating complex coronary disease. Physician enthusiasm for ACURATE neo2 continues, supported by ongoing clinical data that further validates the differentiated enhancements of neo2, including the Italian neo registry, which demonstrated reduced rates of PVL, low PPI, excellent hemodynamics and high device success rate in more than 900 patients.
Turning to WATCHMAN. Organic sales grew 17% versus prior year. Growth accelerated sequentially on a comp-adjusted basis, with strength across the region with a full launch of FLX in Japan, market share gains in Europe and increased penetration in the U.S. as we continue to drive awareness with ongoing clinical evidence in our second-generation device. We remain confident, based on our ongoing discussions with FDA, that our DAPT submission will be approved in the coming months. And the uses of DAPT with FLX was recently highlighted in real-world data, with more than 17,000 patients with the NCDR registry. This demonstrated no significant difference in rates of major events at 45 days post implant. Whether patients were discharged from the hospital on DAPT, to DOAC and aspirin, or warfarin and aspirin. In Rhythm Management, organic sales grew 7% versus prior year. In core CRM, we anticipate that our growth was at or above the market, with our low-voltage business growing mid-single digits and our high-voltage business growing low single digits. Our S-ICD franchise continues to perform well, further supported by positive data from the investigator-sponsored ATLAS trial presented at HRS earlier this year.
The ATLAS trial compared EMBLEM S-ICD to single-chamber transvenous ICD devices and demonstrated similar protection from sudden death and superiority from serious lead-related complications at six months. Our Diagnostics business continues to perform well, outpacing the market, driven by the Preventice portfolio and our implantable cardiac LUX-Dx. In electrophysiology, sales grew 9% on an organic basis and 67% on an operational basis versus prior year. Second quarter performance was led by strength and differentiation of our portfolio in Europe and Japan. We're pleased to have completed enrollment in both the NEwTON AF trial and the ADVENT trial, important steps to expand the offering of our StablePoint force-sensing catheter in the U.S. in 2023 and FARAPULSE in the U.S. in 2024.
Physician enthusiasm is very strong for both our POLARx and FARAPULSE platforms in Europe, and we're looking forward to increasing our account openings in the second half of this year. The Baylis team continues to execute well with strong performance in the quarter, led by VersaCross-RF access system. The integration is on track, and we're excited to have launched the Baylis-developed VersaCross Connect LAAC Solution to provide safe and more efficient access to left-side heart for WATCHMAN FLX implants. In Peripheral Interventions, organic sales grew 6% versus prior year. Within the arterial franchise, we had another very strong quarter of double-digit growth in the drug-eluting portfolio as Ranger and Eluvia solidified their positions in key global markets. In venous, the U.S. clot management business was impacted in the quarter by both the transient impact of the contrast shortage as well as by competition, largely offset by strength in Varithena sales as we continue to expand market share with our innovative offering.
Interventional Oncology grew low double digits in the quarter, fueled by our innovative cancer therapies, TheraSphere and ICEfx, as well as the robust set of embolization access and delivery tools that we offer. Globalization remains a significant opportunity in the space. And notably, we have commenced treatment of patients with PDAC malignancies in the Hainan province of China with TheraSphere through a medical pilot program. Outside of the Hainan province, TheraSphere treatment in China is restricted to the MANDARIN clinical trial. Earlier this quarter, we issued our annual performance report which showcases our commitment to corporate responsibility and progress toward our longer-term goals. In this report, we highlight key metrics in support of our efforts, include performance against our first human capital scorecard, which tracks company-wide goals and is part of the company's annual bonus plan. You can access this report at any time through our Investor Relations website.
We're very pleased with our first half results and outlook for 2022 and beyond despite the macroeconomic challenges we continue to face. Our innovative portfolio, category leadership strategy, commercial execution and commitment to ongoing and clinical evidence positions us well today and into the future. We look forward to hosting an investor event at TCT this September. We'll provide more details as they're available. While the macroeconomic environment continues to be challenging, we remain committed to our long-term financial goals, continuing to grow sales faster than underlying markets, operating margin expansion, double-digit adjusted EPS growth and strong adjusted free cash flow. I remain very grateful to our employees for their winning spirit.
I will now turn things over to Dan to review our financial performance in more detail.