Boston Scientific Expands in Endoscopy - Analyst Blog

Boston Scientific Corporation BSX has begun the year on a good note. The company kick-started the year with the launch of OffRoad Re-Entry Catheter System in the U.S and receipt of a CE mark in Europe for its WallFlex Esophageal Stent in February. Thereafter, Boston Scientific obtained the CE mark for its REBEL Platinum Chromium Coronary Stent System and Ingevity MRI Pacing Leads in March.

Recently, Boston Scientific won U.S. Food and Drug Administration (FDA) and CE mark approval for the Expect Slimline (SL) Needle. The product, which has been launched globally, will be used for Endoscopic Ultrasound-Fine Needle Aspiration (EUS-FNA) procedures.

The EUS-FNA procedure is an advanced and time-saving way to conduct a tissue biopsy. The Expect Slimline Needle is used to collect tissue samples which are examined through EUS-FNA procedures from organs close to the gastrointestinal tract. The procedure is associated with improved survival rates in patients suffering from pancreatic cancer as it allows healthcare providers to make more informed therapeutic decisions. 

The launch of the Expect Slimline Needle, whose design is exclusively based upon customer feedbacks, seems to be well aligned with one of Boston Scientific's key strategic initiatives of developing vital capabilities by delivering customer-focused and economical products.

The Expect Slimline Needle comes under Boston Scientific's Endoscopy business and focuses on gastrointestinal endoscopy. In 2013, Boston Scientific generated 18% of its total revenue from the Endoscopy business. With MarketsAndMarkets estimating global endoscopic markets to grow to $37.9 billion by 2018 and at a compounded annual growth rate (CAGR) of 6.1% from 2013 to 2018, we believe Boston Scientific will experience accelerated revenues from its Endoscopy business.

However, similar products are available in the market including Cook Medical's Spirotome Soft-Tissue Biopsy Needle Set. At present, we would like to remain on the sidelines and wait until more visibility is obtained about the performance and demand for Boston Scientific's Expect Slimline Needle.

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 Covidien plc. COV.Enzymotec sports a Zacks Rank #1 (Strong Buy) while St. Jude Medical and Covidien carry a Zacks Rank #2 (Buy).