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Boston Scientific: NICE Backs GreenLight XPS for BPH Cure

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Boston Scientific Corporation’s BSX GreenLight XPS Laser Therapy System recently obtained positive treatment recommendation from U.K.’s renowned healthcare advisor, the National Institute for Health and Care Excellence (NICE). Notably, the GreenLight XPS Laser Therapy System is used to treat low-risk benign prostatic hyperplasia (BPH) patients or in simple terms enlarged prostate gland.

BPH and GreenLight Technology

Extremely common in older men, BPH causes difficult and frequent urination and can have a significant impact on the quality of life. If left untreated, BPH can lead to severe infections, kidney stones as well as renal failure. Currently, over 110 million men have been diagnosed with BPH globally.

In the U.K., the standard treatment for BPH is transurethral resection of the prostate (TURP), which is a surgical procedure. However, those who are not fit for the conventional surgery can opt for the GreenLight therapy, which is performed on an outpatient day-care basis.

Specifically, this GreenLight therapy has been there in the European market since 2010, has so far delivered excellent patient outcome along with fewer complications.

NICE Recommendation

NICE recommended Boston Scientific’s GreenLight therapy for the treatment of low-risk BPH patients based on favorable clinical evidence from Goliath study, which compared the efficacy of GreenLight XPS system to TURP in 291 patients. The study demonstrated the effectiveness of the laser therapy as it was found to have fewer initial serious post-procedure complications, with lower hospital re-admissions and outcome that are equally effective as the current standard surgical treatment.

Cost Effectiveness

In terms of cost benefit analysis, as per NICE’s estimates, broad adoption of the GreenLight therapy over TURP can lead to savings of up to £3.2 million annually for the National Health Service (NHS). This is because the GreenLight XPS System therapy is typically done on an outpatient day-case basis, while TURP requires an overnight stay in hospitals.

Our Take

No doubt the cost benefit analysis discussed above highlights the GreenLight therapy as a cheap as well as time saving treatment option when compared to the traditional surgical procedures currently in practice.

Moreover, the British Association for Day Case Surgery (BADS 2013) believes that more than 90% of urological surgery should be done as day-case procedures within the next five years. We believe the NICE recommendation for the GreenLight system will rake in higher profits for Boston Scientific’s urology business as other minimally invasive urology treatments are still awaiting the same.

In its last reported quarter, Boston Scientific’s urology and pelvic health business witnessed double-digit growth on account of last year’s acquisition of the American Medical System’s Male Urology portfolio as well as acceleration of its legacy urology business in the overseas. We believe that the recent NICE recommendation will boost sales at this business division.

Zacks Rank & Other Key Picks

The stock currently holds a Zacks Rank #2 (Buy). Other favorably ranked medical stocks are Baxter International Inc. (BAX - Free Report) , NuVasive, Inc. NUVA and LeMaitre Vascular, Inc. LMAT. While Baxter holds a Zacks Rank #1 (Strong Buy), NuVasive and LeMaitre carry a Zacks Rank #2.

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