Boston Scientific Corporation (BSX) recently implanted its Omega Platinum Chromium Bare-Metal Coronary Stent System for the first time in UK. Earlier in March the company received the CE Mark approval for this third generation platinum chromium (PtCr) coronary stent system with greater radio capacity in treating patients with acute coronary artery disease.
The Omega Stent System is a part of Boston Scientific’s PtCr stent product line which also includes Promus Element Everolimus-Eluting Stent System (received CE Mark approval in October 2009) and Taxus Element Paclitaxel-Eluting Stent System (received CE Mark approval in May 2010). All the three stents together will be able to offer a more superior system with greater radial strength and minimum stent recoiling.
The coronary stent business which constitutes a major part of Boston Scientific’s revenue within the cardiovascular division declined 9.7% globally during the fourth quarter of 2011 driven by lower sales of both drug-eluting stents (8.3%) and bare-metal stents (23.8%). However the company still maintained its stent market leadership position being the only company in the industry to offer PtCr stents.
Moreover, Boston Scientific is taking several strategic initiatives to boost its sales. It is targeting the interventional cardiology market of Europe and European Union where the Cardiovascular disease (CVD) has become the major cause of death in recent days. The company is expected to record improved sales with Omega stent’s shipment to the UK market.
Boston Scientific is also focusing on defensive ideas like controlling the cost structure, and portfolio rationalization to revive growth and profitability in the competitive medical devices industry which has major players like St. Jude Medical (STJ) and Medtronic (MDT). The company is expanding its product portfolio and also emphasizing on extensive acquisitions, the recent being the privately-held Atritech that increases its scope for tapping the atrial fibrillation and structural heart therapy markets.
Presently, we are “Neutral” on Boston Scientific.
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