Boston Scientific Corporation (NYSE:BSX) has been dominating the headlines of late, courtesy of the FDA approval for its Vercise Deep Brain Stimulation (DBS) System. The device is used to treat symptoms of Parkinson's disease (PD). The first commercial implant with the Vercise System will be done at the University of Minnesota Medical Center in Minneapolis, MN.
Studies Supporting the System
The approval came on the back of encouraging data from INTREPID study — the first multi-center, prospective, double-blind, randomized sham-controlled study on DBS for PD in the United States. The study confirmed the effectiveness and safety of the system. Moreover, the system recorded positive safety data at the European multi-center, prospective, single-arm VANTAGE study.
Developments in DBS Portfolio
Boston Scientific witnessed improvement in its Neuromodulation business in the last reported quarter on several product launches, including that of Vercise Gevia MRI DBS in Europe with the Cartesia Lead in June which provided the first directional, rechargeable and magnetic resonance (MR) conditional system. The company also introduced Neural Navigator 2 — programming software to allow physicians to visualize the stimulation field while configuring DBS programs for patients. Boston Scientific is also currently supporting a research on the use of DBS for stroke recovery and treating Alzheimer's disease.
Market Potential
Per a Transparency Market Research report, the global DBS market is projected to reach a value of $3.21 billion by 2020, at a CAGR of 8.9%. The prospects in the market are primarily based on an increasing number of people suffering from neurological diseases across all age groups. Per the company, more than one million people in the United States and 10 million globally are suffering from PD. Thus, the latest FDA approval will help Boston Scientific cash in on the bountiful opportunities in the DBS market.
Share Price Movement
Over the past three months, Boston Scientific has been underperforming the broader industry. The stock has declined 12.3% in contrast to the broader industry's 0.3% gain. The latest FDA approval is expected to help the stock bounce back.
Zacks Rank & Key Picks
Boston Scientific currently carries a Zacks Rank #3 (Hold).
A few better-ranked medical stocks are PetMed Express, Inc. (NASDAQ:PETS) , Align Technology, Inc. (NASDAQ:ALGN) and Myriad Genetics, Inc. (NASDAQ:MYGN) . Notably, PetMed, Align Technology and Myriad Genetics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 85.7% over a year.
Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 135.7% in a year.
Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has gained 81.2% in a year’s time.
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