Keeping in line with its strategy of emerging market
expansion, medical device giant
Boston Scientific Corporation
) introduced its lead-free subcutaneous implantable cardioverter
defibrillator (S-ICD) in the Asia Pacific market. Recently, the
first implant of the S-ICD was performed in Hong Kong.
The acquisition of Cameron Health in 2012 has given Boston
Scientific access to the S-ICD system. The S-ICD system is the
world's first and only subcutaneous implantable defibrillator
that provides protection from sudden cardiac arrest (SCA) while
leaving the heart and vasculature untouched. It is the least
invasive implantable defibrillator available globally and
substitutes the transvenous implantable cardioverter
defibrillator (TV-ICD) that requires leads to be placed in the
Though this system is commercially available in Europe and has
received the U.S. approval in 2012, it is yet to create its
foothold in the densely populated Asia market. With recent data
showing almost a 2 million unprotected population in Asia Pacific
at risk of SCA, we expect S-ICD, once marketed, to capture a
solid grasp over this untapped market.
Against the backdrop of flattening or declining sales growth
in developed markets like the U.S. and Europe, Boston Scientific
is gradually strengthening its presence in the emerging markets
with countries like Brazil, Russia, India and China (BRIC)
recording over 8% growth on a combined basis during fiscal
An important aspect of the company's growth strategy is to
continue pursuing development opportunities outside the U.S. by
expanding global presence, inclusive of the emerging markets.
Recently, Boston Scientific created a new Asia-Pacific regional
organization to further increase capabilities and strengthen its
position in this fast-growing region.
Boston Scientific plans to invest approximately $150 million
in China - one of the world's fastest growing and largest medical
devices markets, over the next 5 years to build a local
manufacturing operation to cater to Chinese market needs and
develop a training center for healthcare providers. According to
the company, emerging markets should experience accelerated
growth as it expects sales therein to increase from 8% of total
sales in 2013 to 15% in 2017.
Currently, Boston Scientific carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader healthcare industry are
St. Jude Medical Inc.
). Enzymotec sports a Zacks Rank #1 (Strong Buy) while St. Jude
Medical and Covidien carry a Zacks Rank #2 (Buy).
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