Boston Scientific (BSX) presented an analysis on data derived from two trials – Perseus and Taxus Atlas at the American College of Cardiology annual conference. It was observed that the Ion platinum chromium (PtCr) paclitaxel-eluting stent system (Taxus Element) compared favorably to the currently available Taxus Liberte paclitaxel-eluting stent system.
Both the stents employ the same drug and polymer. However, the former demonstrated better performance in case of major adverse cardiac events and myocardial infarcation among the patients. Data from about 2,298 patients enrolled in the Perseus and Taxus Atlas trials were analyzed.
While the Taxus Element stent system is available in Europe (received CE Mark approval in May 2010), it is yet to be approved in the US. Boston Scientific expects to launch the Taxus Element stent system as Ion paclitaxel-eluting PtCr stent in the US in mid-2011 and in Japan in late 2011 or early 2012. The positive data comes as an encouragement for Boston Scientific, especially at a time when it plans to launch Ion stent in the US.
The company also announced 12-month results from the Platinum trial, which studied the safety and effectiveness of the Promus Element stent compared to the older version of Promus. It was observed that the Promus Element stent was non-inferior to the Promus stent.
While Promus Element received CE Mark approval in 2009, it is yet to be approved in the US. Boston Scientific expects to receive approval from the US Food and Drug Administration (FDA) for the Promus Element Stent in mid 2012.
Cardiovascular is the largest segment at Boston Scientific and accounts for around 41% of sales. However, revenues from this segment declined 7% year over year to $813 million in the fourth quarter of fiscal 2010 due to a 9% decline in Interventional cardiology ($641 million), partly mitigated by a 2% increase in Peripheral Interventions ($172 million).
Sales of DES in the US declined primarily due to a reduction in market share in the US coupled with overall decrease in the market size stemming from lower average selling prices. Boston Scientifics’ DES market share was stable for the last five quarters in the US at around 46% (14% for Taxus and 32% for Promus), down from 49% in 2009. The stent market remains quite competitive with players such as Abbott (ABT), Johnson & Johnson (JNJ) and Medtronic (MDT) being the prominent players.
We are currently ‘Neutral’ on Boston Scientific.
ABBOTT LABS (ABT): Free Stock Analysis Report
BOSTON SCIENTIF (BSX): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
MEDTRONIC (MDT): Free Stock Analysis Report
Zacks Investment Research
