Interventional Cardiology Drives Boston Sci Growth

The Watchman left atrial appendage closure device and Lotus TAVR device are among the company's innovative cardiovascular products.

Chris Newmarker

Boston Scientific CEO Michael Mahoney in recent years has been making good on his promise to turn around years of sluggish performance. The company's stock has roughly tripled in value since late 2011, and is up 42% so far this year. In fact, a report from Evaluate Medtech found that the company's share price rose 34% in the first six months of the year--the biggest increase of any medtech company with $15 billion or more in revenue

In 2015, Boston Scientific's interventional cardiology business has been helping drive the company forward. Growth includes company's Watchman left atrial appendage closure device, a unique stroke treatment device that prevents clots from the heart from reaching the brain. It took years for the product to win FDA approval. Boston Sci was dealt a blow in November when CMS proposed limited Medicare coverage for the Watchman. But many health professionals still think it's business as usual for the device, at least for the short term, according to Modern Healthcare.

Boston Sci also gained access this year to the billion-dollar market for cardiac monitoring products through a 27% stake in wireless heart-monitoring device maker Preventice Solutions (Houston, TX). The deal makes Boston Sci the exclusive worldwide sales and marketing representative for Preventice's cardiology diagnostic and monitoring products.

Another promising Boston Scientific product is its Lotus TAVR device, which includes an innovative adaptive seal and the ability to uniquely fully recapture and reposition the valve. Earlier in the year, the company predicted the device would bring in as much as $200 million by 2016.

"The adaptive seal is a crucial contributor to Lotus best-in-valve PVL rates and we have successfully built an extensive patent portfolio to protect that innovation," Mahoney said during an October 28 earnings call, transcribed by Seeking Alpha.