Positive MADIT-CRT Data at Boston Scientific - Analyst Blog

Boston Scientific Corporation BSX presented encouraging long-term results from the Multicenter Automatic Defibrillator Implantation – Cardiac Resynchronization Therapy (MADIT-CRT) clinical trial at the American College of Cardiology. Following the news, shares of Boston Scientific rose 2.4% to close at $13.52 on March 31, 2014.

MADIT-CRT is a significant continuation of Boston Scientific's sponsorship of certain landmark clinical trials such as MADIT, MADIT II, and COMPANION. MADIT-CRT is the largest randomized NYHA Class I/II CRT-D trial conducted globally and compares the two treatment modes using implantable cardioverter defibrillator (ICD) and cardiac resynchronization therapy defibrillators (CRT-D) in patients with mild heart failure.

The MADIT-CRT study has delivered clinical trial results that validate that early intervention with CRT can reduce mortality rates as well as heart failure events.

Per the results, patients suffering with mild heart failure and left bundle branch block, and treated with Boston Scientific's defibrillator in conjunction with the CRT therapy, showcased a 41% relative reduction in the risk of mortality, in comparison with patients who were treated only with the defibrillator. Moreover, patients treated with CRT-D therapy also experienced a 62% relative reduction in the chance of experiencing a first heart failure event.

It is worth noting that Boston Scientific earned nearly 26.4% of its total revenue in 2013 from its cardiac rhythm management business which encompasses product lines like ICD, CRT-Ds and pacemakers. The longevity of the battery life of CRT-D developed by Boston Scientific enhances the life expectancy of the patients treated with it. With the company estimating a 60% rise in patients at risk of heart failures by 2030, we are optimistic about the future demand of this product in the cardiac rhythm management market.

Currently, Boston Scientific carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader healthcare industry are Enzymotec Ltd. ENZY, St. Jude Medical Inc. STJ and Meridian Bioscience, Inc. VIVO. Enzymotec sports a Zacks Rank #1 (Strong Buy) while St. Jude Medical and Meridian Bioscience carry a Zacks Rank #2 (Buy).