Following receipt of the CE mark for the Lotus Valve System in October, Boston Scientific Corporation (BSX) announced the first two commercial implants of this system in a German hospital. This marks a significant achievement for the development of the Transcatheter Aortic Valve Implantation (TAVI) technology.
The Lotus Valve System is a differentiated second-generation Transcatheter Aortic Valve Replacement (TAVR) technology. It facilitates a more controlled, detailed and predictable procedure during implantation. Its Adaptive Seal technology lessens aortic regurgitation (leaking), a proven predictor of mortality. Lotus Valve is currently the sole aortic valve device which is accessible in its final position prior to release.
According to the company, this commercial implant will boost adoption of this new technology in Europe. Currently, this technology is available only in select centers in this region.
Aortic valve stenosis, which causes thickening and stiffening of the valve, is a common medical disorder currently affecting 3% of the population over the age of 65 and 5% over 75. Thus, we believe that Lotus Valve, as an important treatment alternative for severe aortic valve disease patients, has ample scope and should gain wide acceptance among healthcare providers.
Last month, the company also met a key performance measure in the treatment of symptomatic patients with severe aortic valve stenosis in the REPRISE II Trial. As per the trial, Lotus Valve system, which was implanted in all 120 patients, met the primary device performance endpoint at 30 days with no severe paravalvular aortic regurgitation (leaking).
Currently, Boston Scientific is resorting to all available means in order to return to growth. To revive its top line, the company is focusing on strategic initiatives to drive growth and profitability. These include the recently announced restructuring initiatives for 2014, strengthening of its portfolio, targeting suitable acquisitions in areas of unmet medical needs and focusing on emerging markets.
The restructuring plan includes continued implementation of Boston Scientific’s ongoing Plant Network Optimization strategy, increased focus on driving operational efficiencies and current business and commercial model changes. The recently declared higher management churn is also expected to synchronize with the company’s growth strategies.
Boston Scientific has a strong pipeline of products under development, the launch of which should eventually drive the top line. We are encouraged by the focus on emerging markets, especially India and China. The company plans to invest approximately $150 million in China over the next 5 years to build a local manufacturing operation.
Currently, Boston Scientific sports a Zacks Rank #3 (Hold). However, MedTech companies such as Align Technologies Inc., (ALGN), Cardinal Health, Inc. (CAH) and Natus Medical Inc. (BABY), which carry a Zacks Rank #1 (Strong Buy), are worth considering.
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