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Boston Scientific Funds MValve to Boost TMVR Expansion

Boston Scientific CorporationBSX recently declared that it has closed an additional round of financing with MValve Technologies Ltd., in keeping with its plans to invest toward the development of a unique mitral regurgitation (MR) treatment solution that will work with the Boston Scientific Lotus Valve. Notably, Boston Scientific has funded MValve since 2012 and has an exclusive option to acquire this percutaneous mitral valve replacement system developer.

With this additional round of finance, MValve plans to fund a first-in-human clinical trial for its docking system for transcatheter mitral valve replacement (TMVR) in patients with mitral regurgitation. Notably, mitral regurgitation is a common heart valve disorder that occurs when the mitral valve does not close properly, causing an abnormal reversal of blood flow from the left ventricle into the left atrium.

This approach by MValve, which has Boston Scientific's Lotus Valve deployed inside the docking system, targets the treatment of mitral regurgitation in a broad range of patients as well as improve long-term clinical outcomes in them. Boston Scientific's Lotus Aortic Valve System is a differentiated second-generation valve replacement technology, consisting of a pre-loaded, stent-mounted tissue valve prosthesis and catheter delivery system for percutaneous placement of the valve.

Boston Scientific's strong initiative to finance the development of MValve Technologies is based on the company's optimism about robust growth opportunities in the TMVR segment under the company's Structural Heart portfolio. Both the companies are looking forward to continued development of this unique mitral system, which is expected to provide physicians with a transformative and suitable treatment option.

At the moment, the MValve docking system is not available for sale and the Lotus Valve System is still an investigational device in the U.S. However, it has won CE mark in the European Union.

In this regard, we note that, to expedite growth in the billion dollar TMVR market, an array of medical device majors have come forward in recent times. Last week, Medtronic plc MDT acquired California-based medical device start-up firm - Twelve, Inc. Twelve's TMVR technology has been designed to treat inoperable patients suffering from mitral valve regurgitation. The technology, therefore, is expected to strongly support Medtronic's expansion in the TMVR space. This, in turn, will imply strong competition for Boston Scientific.

With a similar aim in view, in July 2015, Edwards Lifesciences agreed to buy CardiAQ Valve Technologies - a privately held medical device developer of percutaneous mitral heart valve replacement system - for $400 million.

Following suit, in September, Abbott Laboratories ABT acquired the remaining equities of Minnesota-based Tendyne (those that it already did not own). Tendyne, which is focused on developing minimally invasive mitral valve replacement therapies, was taken over for a total price of $250 million.

Currently, both Boston Scientific and Medtronic carry a Zacks Rank #3 (Hold). Abbott on the other hand, retains a Zacks Rank #2 (Buy). A better-ranked medical product stock is Baxter International Inc. BAX , with a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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