On Dec 20, Zacks Investment Research upgraded medical device
Boston Scientific Corporation
) to a Zacks Rank #2 (Buy). The upgrade came on the back of the
recent CE Mark approval for the company's X4 line of quadripolar
Why the Upgrade?
The CE Mark approval of X4 line of quadripolar CRT-D systems,
includes the AUTOGEN X4, DYNAGEN X4, and INOGEN X4 cardiac
resynchronization therapy defibrillators (CRT-Ds), a suite of
ACUITY X4 quadripolar LV leads and the ACUITY PRO lead delivery
system.This approval ensures wide recognition of the product
throughout the European region.
The market is also upbeat about the adoption of this product
following the CE Mark based on a recent study conducted by the
World Health Organization (WHO).According to WHO, cardiovascular
diseases account for more than half of all deaths across the
European Region. Moreover, WHO has led to the finding that
80% of premature heart diseases and strokes are preventable.
Therefore, it is believed that that the new offering has the
potential to act as a boon for heart patients by helping save
The US defibrillator and stent markets have remained major
overhangs over the past several quarters. However, with several
initiatives undertaken by the company, the CRM segment is
currently reviving its top line.
In the last reported quarter, total CRM sales were up 1% y/y
(same at CER) to $464 million (exceeding the high end of the
guidance range) with a 3.3% increase in U.S. sales ($282 million)
and a 3.7% drop in the international market to $182 million. The
company believes that the worldwide CRM market continued to show
signs of stabilization on the back of growth in Asia and Latin
Boston Scientific is resorting to all available means in order
to return to growth. The company has a strong pipeline of
products under development. The launch of the new products should
drive the top line. We are encouraged by the focus on emerging
markets, especially India and China. Boston Scientific plans to
invest approximately $150 million in China over the next 5 years
to build a local manufacturing operation.
Other Stocks to Consider
Apart from Boston Scientific, other stocks worth considering
in the MedTech industry include
Align Technology Inc.
Cardinal Health, Inc.
), all carrying a Zacks Rank #1 (Strong Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis
BOSTON SCIENTIF (BSX): Free Stock Analysis
CARDINAL HEALTH (CAH): Free Stock Analysis
MCKESSON CORP (MCK): Free Stock Analysis
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