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Boston Scientific's FDA Nod for Eluvia Stent Expands PI Suite

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Boston Scientific Corporation’s (BSX - Free Report) recent receipt of Premarket Approval (PMA) to market the Eluvia Drug-Eluting Vascular Stent System expanded its Peripheral Interventions (PI) suite. Notably, the company received CE Mark for the stent system in 2016.

Developed for treating peripheral artery diseases (PAD), the Eluviastent system uses a drug-polymer combination to provide continued release of the drug paclitaxel for a year. This prevents tissue regrowth which sometimes blocks the stented artery.

The system is built on a self-expanding nitinol stent designed for use in superficial femoral and proximal popliteal arteries — Innova Stent System platform.

Study Supporting the System

The approval came on the back of encouraging data from the IMPERIAL trial. The results supported Eluvia stent system’s vessel patency and freedom from target lesion revascularization rates. Notably, more than 95% of patients were prevented from requiring a reintervention after a year of Eluvia stent usage.

Market Prospects

Boston Scientific stands to gain from several favorable trends in the PAD and coronary arterial disease markets. Going by a 2016 Centers for Disease Control and Prevention report, roughly 8.5 million people in the United States suffer from PAD.

Moreover, an aging population coupled with the increasing incidence of diabetes and obesity is likely to result in more PAD cases. This in turn is likely to propel demand for Boston Scientific’s Eluvia stent.

Per a report by Transparency Market Research, the global market for coronary heart diseases therapeutics is expected to witness a surge in demand on rising incidence of chronic diseases. Going by Technavio data, this market is likely to see a CAGR of more than 5% by 2021.

PI Business at a Glance

The PI business markets devices used in peripheral vascular stenting and percutaneous transluminal angioplasty (PTA) procedures. These are required to treat peripheral diseases (diseases which appear in blood vessels other than in the heart and biliary tree). This product line includes balloon catheters, stents, sheaths, wires and vena cava filters. This segment also sells products designed to treat patients with non-vascular diseases. The non-vascular suite of products includes biliary stents, drainage catheters and micro-puncture sets designed to treat, diagnose and ease various forms of benign and malignant tumors.

Sales at this segment grew 8.7% year over year organically on increasing sales across all major markets with strength in Asia in the last reported quarter. Moreover, the company continues to see increased uptake of Drug-Eluting Eluvia Stents, Ranger Balloon as well as the Jetstream atherectomy system in Europe.

Share Price Movement

Over the past year, Boston Scientific has been outperforming its industry. The stock has gained 33.5% compared with the industry's 22% rise. Launches and partnerships are likely to drive the stock.

Zacks Rank and Key Picks

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

Some better-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Amedisys, Inc. (AMED - Free Report) and Masimo Corporation (MASI - Free Report) .

Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock currently carries a Zacks Rank of 2 (Buy).

Amedisys’ long-term expected earnings growth rate is 19.4%. The stock holds a Zacks Rank #1 (Strong Buy) at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Masimo’s long-term expected earnings growth rate is 14.8%. The stock has a Zacks Rank #2 at present.

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