Boston Scientific's WATCHMAN FLX LAAC Device Gets CE Mark

Expanding its Interventional Cardiology (IC) suite, Boston Scientific Corporation (NYSE:BSX) recently announced receipt of the CE Mark for the WATCHMAN FLX Left Atrial Appendage Closure (LAAC) device. At the same time, the company has also begun a controlled commercialization of the device in Europe. Boston Scientific plans to increase the availability of the device in the European region in the second half of 2019.

The new WATCHMAN FLX device offers a customized placement experience by providing implantation flexibility along with a completely enclosed and rounded frame. It also allows the physician to fully recapture and reposition the device during the treatment procedure.

However, the WATCHMAN FLX device is an investigational device in the United States and is not available for sale.

Market Potential

Per Boston Scientific, studies suggest that more than 90% of stroke-causing blood clots arising from the heart are formed in the left atrial appendage in patients with non-valvular atrial fibrillation.

Per Research and Markets, the global LAAC device market is expected to see a CAGR of 30.6% between 2018 and 2024. The report further states that increasing incidences of atrial fibrillation in aged population is likely to drive the global LAAC device market.

IC Business at a Glance

Interventional Cardiology business develops and manufactures technologies to diagnose and treat coronary artery disease, and other cardiovascular disorders like structural heart conditions. In 2018, Interventional Cardiology business accounted for 26% of total revenues.

Boston Scientific’s $435-million buyout of Switzerland-based Symetis has already started to strongly contribute to the company’s IC business in Europe. Symetis’ ACURATE group of valve products is currently compensating well for the loss incurred by the company from the suspension of Lotus valve platform in Europe.

The ACURATE TAVR valve platform is currently building momentum in Europe. Boston Scientific is currently targeting the launch of the next-generation ACURATE neo2 in Europe in the second half of 2019 and expects to begin enrollment in the U.S. IDE around midyear.

Share Price Movement

Over the past year, Boston Scientific has been outperforming its industry. The stock has gained 43.6% compared with the industry's 6.1% growth. Launches and partnerships are likely to drive the stock.

Zacks Rank and Key Picks

Boston Scientific currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Integer Holdings Corporation (NYSE:ITGR) , Veeva Systems Inc. (NYSE:VEEV) and Hologic, Inc. (NASDAQ:HOLX) .

Integer Holdings projects earnings growth rate of 31.2% for the first quarter. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Veeva Systems’ long-term earnings growth rate is projected at 14.8%. The stock currently carries a Zacks Rank #2 (Buy).

Hologic’s long-term earnings growth rate is projected at 8.9%. The stock presently has a Zacks Rank #2.

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