Boston Scientific Corporation
(
BSX
) has strengthened its Peripheral Interventions (PI) business with
the recent launch of Charger percutaneous transluminal angioplasty
(PTA) balloon catheter. The device is meant for a wide range of
peripheral angioplasty procedures including post-stent
dilatation.
This is the third new peripheral balloon catheter launched in
2011. Earlier launches include Mustang percutaneous transluminal
angioplasty balloon (June 2011) and the Coyote balloon catheter
(September 2011). Both resulted in increased market share for the
company.
During the most recent quarter, PI segment sales were $182
million, up 9% year over year (up 4% at CER) despite a slowdown in
US procedures that led to a 2.5% decline in US sales ($77 million).
Growth in PI stent systems was driven by the Epic self-expanding
nitinol stent system in certain international markets and the
Carotid Wallstent stent system in Japan. The company expects to
launch the Epic stent system in the US in late 2012 or early
2013.
Under PI, management is also seeing robust uptake in its
interventional oncology franchise. Products slated to be launched
in 2012 are expected to drive the top line further.
Boston Scientific has resorted to a diversification through
acquisition strategy. To this end the company acquired S.I.
Therapies and ReVascular Therapeutics in February 2011. These
acquisitions further expanded the PI portfolio with a re-entry
catheter and intraluminal chronic total occlusion (
CTO
) crossing device, enabling endovascular treatment in cases that
typically cannot be treated with standard endovascular devices. The
launch of Offroad re-entry catheter system in certain international
markets is expected in early 2012 with a limited release of the
Truepath intraluminal CTO device in the US and certain other
international markets, pending regulatory approval.
These are trying times for MedTech companies when the core
segments of stents and defibrillators are struggling for growth due
to pricing pressure and a loss of market share. Boston Scientific
is not alone and its peers
Medtronic
(
MDT
) and
St Jude Medical
(
STJ
) are also witnessing similar challenges. In this scenario, the
company is working on reviving its top line by expanding its
product portfolio, either through pipeline development or strategic
acquisitions.
We are currently Neutral on the stock, in line with the
short-term Zacks #3 Rank (Hold).
MEDTRONIC (
MDT
): Free Stock Analysis Report
ST JUDE MEDICAL (
STJ
): Free Stock Analysis Report
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