Boston Scientific MultiSENSE Study On HeartLogic Positive

Boston Scientific (NYSE:BSX) announced positive clinical trial data from the Multisensor Chronic Evaluation in Ambulatory Heart Failure Patients (MultiSENSE) study. This study (based on 900 patients) was conducted to examine the performance of the HeartLogic Heart Failure Diagnostic to predict impending heart failure (HF) decompensation.

The study demonstrated that HeartLogic Diagnostic iincreases the ability to classify patients at high or low-risk of experiencing a future HF event. Presently, physicians recommend blood test to diagnose HF or determine disease severity. However, this method is less reliable as the assessment loses relevance when patients’ conditions change. The MultiSENSE trial data showed that HeartLogic Diagnostic expanded the ability of a baseline blood test to identify patients at a high risk of a HF event.

Notably, the HeartLogic Diagnostic is already CE Marked and FDA approved and will be available commercially later this year under the Rhythm Management segment.

In the last reported second quarter, Rhythm Management was the second largest contributor to Boston Scientific's top line, which includes Cardiac Rhythm Management (CRM) and Electrophysiology. CRM reflected a 2% year-over-year increase in sales in the reported quarter.

According to a report by GlobalData, the heart failure market is estimated to reach a value of $11.8 billion by 2025, at a CAGR of 13.7%. Considering the huge potential of the market, we believe the latest development is a strategic fit.

Over the past year, Boston Scientific has been trading above the broader industry. The stock has risen 23.1% over this period, as against a 9.5% gain of the broader industry.

Estimate Revision Trend

The estimate revision trend has been favorable for the company. For the current year, seven estimates moved north compared with no movement in the opposite direction over the last two months. As a result, the Zacks Consensus Estimate for the full year has increased to $1.25 per share from $1.24 over the same period.

Zacks Rank & Key Picks

Boston Scientificcarries a Zacks Rank #3 (Hold). A few better-ranked medical stocks are Edwards Lifesciences Corporation (NYSE:EW) , Amedisys, Inc. (NASDAQ:AMED) and IDEXX Laboratories, Inc. (NASDAQ:IDXX) . Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Amedisys and IDEXX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 19.8% over the last six months.

Amedisys has a long-term expected earnings growth rate of 18.2%. The stock has gained 2.2% over the last six months.

IDEXX has a long-term expected earnings growth rate of 19.8%. The stock has gained around 6.9% over the last six months.

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