Boston Scientific Corporation (BSX - Free Report) announced the receipt of the CE Mark and the subsequent limited-market launch of its fourth-generation Vercise Genus Deep Brain Stimulation (“DBS”) System in Europe. The system is indicated for the treatment of the symptoms of Parkinson's disease (“PD”) and dystonia, as it delivers precisely targeted electrical stimulation in the brain, designed to provide optimal symptom relief.
Notably, the company's latest clinician software can optimize programming with integrated visualization using patient imaging through Boston Scientific’s exclusive collaboration with Brainlab.
However, the Vercise Genus DBS System is not available for use or sale in the United States.
With the latest regulatory clearance and subsequent limited launch, Boston Scientific aims to strengthen its Neuromodulation business across the globe. Notably, the Neuromodulation business is a component of the company’s broader Rhythm and Neuro arm.
Few Word on the Vercise Genus
The Vercise Genus DBS System, which is the fourth generation DBS system since 2012, is indicated for the treatment of levodopa-responsive PD in Europe, which cannot be adequately controlled with medication. It can also be used for the treatment of intractable primary and secondary dystonia. In both cases, the system can be used for persons above the age of seven.
Thalamic stimulation (stimulation of the brain’s thalamus area) using the Vercise Genus DBS System is indicated for the suppression of tremor which cannot be effectively controlled by medication in patients diagnosed with essential tremor or PD.
Significance of the Launch
Currently, PD affects more than a million people globally while dystonia impacts more than half a million people across Europe.
Per the medical fraternity, the delivery of the right dose of stimulation at the target area can remarkably control the patient's symptoms in cases of neuro-degenerative movement disorders.
The Vercise Genus DBS System incorporates the multiple independent current control and the Cartesia Directional Lead with integrated visualization in its design. Per management, the system provides the benefit of Bluetooth programming, which is of utmost importance due to social distancing.
Per a report by Grand View Research, the global DBS-devices market size was valued at $1 billion in 2019 and is anticipated to expand at a CAGR of 9.6% between 2020 and 2027. Factors like rising patient population suffering from involuntary movements associated with dystonia and PD, and growing adoption of minimally invasive procedures are likely to drive the market.
Given the market potential, the regulatory approval and the limited market release is expected to significantly boost Boston Scientific’s Neuromodulation business.
Recent Developments in Rhythm and Neuro Arm
Of late, Boston Scientific has witnessed some important developments in its Rhythm and Neuro segment.
The company, in July, received the FDA510(k) clearance for its LUX-Dx Insertable Cardiac Monitor System.
In June, the company announced the U.S. launch of its tool for monitoring the effect of radiofrequency energy delivery, the DIRECTSENSE Technology. The launch was preceded by its FDA approval in April. This launch is expected to provide a significant boost to the company’s Electrophysiology business, which is a segment of the broader Rhythm and Neuro arm.
Moreover, in May, the company announced the final results from the UNTOUCHED study of the EMBLEM Subcutaneous Implantable Defibrillator System.
Shares of the company have gained 49.3% in the past six months compared with the industry’s 35.1% rise and the S&P 500’s 41.5% rally.
Zacks Rank & Key Picks
Currently, Boston Scientific carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .
QIAGEN’s long-term earnings-growth rate is estimated at 22.3%. It currently flaunts a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings-growth rate is estimated at 15.5%. It currently sports a Zacks Rank #1.
Hologic’s long-term earnings-growth rate is estimated at 15.5%. The company presently flaunts a Zacks Rank #1.
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