Boston Scientific Corporation
) recently revealed that it received CE Mark approval and is
proceeding with the launch of the Precision Spectra Spinal Cord
Stimulator (SCS) System in Europe. This device is intended to
provide better relief from pain for a variety of patients
inflicted with chronic pain. The Precision Spectra System is the
sole SCS system in the market with 32 focused power sources and
Spinal cord stimulators provide electrical pulses. The pulses
cover up pain signals going to the brain. Extra lead ports in the
Precision Spectra System provide medical practitioners additional
flexibility to manage pain.
About one in five persons suffers from chronic pain in Europe.
In its severe forms, patients may lose the ability to carry on
with a normal day to day life. Till date, over 60,000 patients
across the world have received therapy using Boston Scientific
The Precision Spectra Spinal Cord Stimulator is at present
being reviewed by the Food and Drug Administration. It has not
been commercialized in the U.S.
Given several headwinds currently at play, Boston Scientific
continues to focus on strategic initiatives to drive growth and
profitability. These include strengthening its portfolio,
targeting suitable acquisitions in areas of unmet medical needs
and focus on emerging markets. The company plans to invest
approximately $150 million in China, one of the world's fastest
growing and largest medical devices markets, over the next five
years to build a local manufacturing operation. We are impressed
with Boston Scientific's recent acquisitions which reflect its
focus on new therapies to drive top line. Boston Scientific
St. Jude Medical
) in certain segments.
We expect these factors to benefit the company over the long
term and as such we have a 'Neutral' recommendation on Boston
Scientific. The stock retains a Zacks #3 Rank ("Hold") in the
BOSTON SCIENTIF (BSX): Free Stock Analysis
ST JUDE MEDICAL (STJ): Free Stock Analysis
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