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Cardiovascular And MedSurg Segments Drove Boston Scientific's Growth In Q4'16

Boston Scientific's ( BSX ) stock price has shot up by approximately 5% following its Q4'16 earnings announcement. This is because the company's revenues in the quarter were slightly above its previously guided range and the consensus estimates. Driving the company's growth in the quarter were its Cardiovascular and MedSurg Segments, which witnessed 11% and 12% growth, respectively. Furthermore, Boston Scientific's growth prospects in 2017 remain strong. We summarize the key metrics reported by the company in the following table:

Screen Shot 2017-02-03 at 5.39.23 PM

Source: Sec filings

Boston Scientific Gaining Market Share In ICD Market With The Strong Adoption of Synergy DES

The growth in the Interventional Cardiology segment, which constituted around 30% of the company's overall revenues in the quarter, was driven by continued strength in drug-eluting stents ( DES ). Boston Scientific saw double-digit growth in its global DES sales, which was led by the strong adoption of its Synergy DES. It is worth noting that Synergy DES constituted more than 50% of the company's overall DES mix in 2016. Tough Synergy was only approved by the FDA in October 2015, it now constitutes a major portion of the overall DES mix. This is indicative of the fact that Synergy is witnessing strong demand and driving the sales for the Boston Scientific.

Furthermore, Boston Scientific's Synergy is gaining a lead over Abbott's Absorb on the grounds of increased perception of safety. In the near-term, we can expect Boston Scientific to see improvement in its interventional cardiology market share. This can provide the company incremental revenues. Furthermore, the company got the approval for Synergy DES in China during this quarter. This is significant considering that China's ICD market is expected to expanding at a high rate .

Recent Acquisitions Drove The MedSurg Segment's Growth

Boston Scientific was able to maintain a double-digit growth in its MedSurg segment in Q4 as well. In the previous quarter, the company posted organic growth of 10% for the segment. Boston Scientific's growth in this segment was led by its urology and pelvic health segment, which grew by 14%. Furthermore, the company witnessed a double-digit growth in its Endoscopy segment. It should be noted that the company has been active in expanding its portfolio in the MedSurg business through acquisitions, resulting in incremental revenues for the company. Moreover, it helped the company to fill-in the product gaps.

In June 2016, Boston Scientific announced the acquisition of the LumenR™ Tissue Retractor System from LumenR LLC for an undisclosed amount. Further, the company recently completed the acquisition of Endochoice in a deal valued at $210 million. In addition, the company had acquired Xlumena in 2015. We can expect Boston Scientific to continue with its acquisitions going into next fiscal year.

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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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