) has expanded its drug eluting stent ("DES") portfolio with the
CE Mark approval for the Promus PREMIER Everolimus-Eluting
Platinum Chromium Coronary Stent System. Subsequent to the
approval, the company is working on the European market launch of
this next-generation durable polymer drug-eluting stent. With
improved DES features, this stent system is claimed to be the
only platform to feature a customized Platinum Chromium (PtCr)
stent architecture, Everolimus drug coating and fluorinated
co-polymer with a better stent delivery system.
Recent data by the European Heart Network and the European
Society of Cardiology shows that the market for Coronary heart
disease is growing. Currently, it is the single most common cause
of death in Europe with 1.8 million deaths annually. With stent
placement as one of the treatment options, the new product is
expected to boost the company's DES business in Europe going
While we are encouraged with the approval of Promus PREMIER in
Europe, Boston Scientific's Interventional Cardiology segment has
been recording declining sales over the past few quarters,
primarily owing to disappointing performance of the coronary
stent franchise. This is significant as the company in the
recently reported fourth quarter derived 18% of its total
revenues from coronary stents.
During the fourth quarter, global sales of the coronary stent
system (within Interventional Cardiology) were $333 million, down
12.6% due to a disappointing performance from both drug-eluting
stents ("DES") that declined 12.4% to $312 million and bare-metal
stents that plunged 16% to $21 million. The company's DES
business in the U.S. has been struggling due to several headwinds
- lower pricing, softness in percutaneous interventional volume
and share losses following the launch of
) Resolute Integrity stent.
Given the 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 focusing on emerging markets. We also note that
the company is working on penetrating its Element platform in the
emerging markets, including India, Brazil and China and expect
this to continue to accelerate growth through the end of the
current fiscal. We expect these factors to benefit the company
over the long term.
The company now carries a Zacks Rank #3 (Hold). Other medical
device stocks worth a look are
). Both the stocks carry a Zacks Rank #1 (Strong Buy).
BOSTON SCIENTIF (BSX): Free Stock Analysis
CYBERONICS INC (CYBX): Free Stock Analysis
MEDTRONIC (MDT): Free Stock Analysis Report
RESMED INC (RMD): Free Stock Analysis Report
To read this article on Zacks.com click here.