Boston Scientific Corporation (BSX - Analyst Report) recently revealed that it received CE Mark approval and is proceeding with the launch of the Precision Spectra Spinal Cord Stimulator (SCS) System in Europe. This device is intended to provide better relief from pain for a variety of patients inflicted with chronic pain. The Precision Spectra System is the sole SCS system in the market with 32 focused power sources and 32 contacts.
Spinal cord stimulators provide electrical pulses. The pulses cover up pain signals going to the brain. Extra lead ports in the Precision Spectra System provide medical practitioners additional flexibility to manage pain.
About one in five persons suffers from chronic pain in Europe. In its severe forms, patients may lose the ability to carry on with a normal day to day life. Till date, over 60,000 patients across the world have received therapy using Boston Scientific SCS systems.
The Precision Spectra Spinal Cord Stimulator is at present being reviewed by the Food and Drug Administration. It has not been commercialized in the U.S.
Given several headwinds currently at play, Boston Scientific continues to focus on strategic initiatives to drive growth and profitability. These include strengthening its portfolio, targeting suitable acquisitions in areas of unmet medical needs and focus on emerging markets. The company plans to invest approximately $150 million in China, one of the world’s fastest growing and largest medical devices markets, over the next five years to build a local manufacturing operation. We are impressed with Boston Scientific’s recent acquisitions which reflect its focus on new therapies to drive top line. Boston Scientific competes with St. Jude Medical (STJ - Analyst Report) in certain segments.
We expect these factors to benefit the company over the long term and as such we have a ‘Neutral’ recommendation on Boston Scientific. The stock retains a Zacks #3 Rank (“Hold”) in the short term.