Boston Scientific Corporation BSX recently announced the U.S. launch of its tool for monitoring the effect of radiofrequency (RF) energy delivery, the DIRECTSENSE Technology, following its FDA approval in April. Notably, this tool is used to monitor energy delivery during cardiac ablation procedures and is available on the RHYTHMIA HDx Mapping System.
For investors’ note, ablation is a treatment option for patients having cardiac arrhythmias where clinicians use a catheter to create lesions and destroy heart tissue that causes abnormal rhythms.
With the latest launch, Boston Scientific aims to strengthen its foothold in the global Electrophysiology business, which is a segment of the broader Rhythm and Neuro arm.
Significance of the Launch
Boston Scientific believes that the DIRECTSENSE Technology is the only tool which monitors changes in local impedance or electrical resistance around the tip of the INTELLANAV MiFi Open-Irrigated ablation catheter.
The monitoring tool provides an insight into the impedance data around the tip of the catheter. This enables physicians to measure the ability of the tissue to respond to RF energy before they deliver therapy, thus offering an additional therapy effect measurement during an ablation. These insights help minimize the chances of over-ablation and avoid complications.
A significant usefulness of the DIRECTSENSE Technology is that it enables the evaluation of pre-ablation tissue health along with supporting better clinical understanding of how the tissues are being influenced, unlike existing products on the market. This paves the way to guide minimal, predictable ablation during a procedure.
Per a report by Verified Market Research, the global electrophysiology market was valued at $4.08 billion in 2018 and is estimated to reach $8.84 billion by 2026, at a CAGR of 10.17%. Factors like rising prevalence of target diseases, technological advancements in electrophysiology and growing demand for catheter ablation procedures are expected to drive the market.
Given the growing market potential, the launch of the device post the receipt of FDA approval seems to be timed well.
Electrophysiology a Strong Area of Growth
The integration of Apama Medical has positioned Boston Scientific well to expand into the single-shot pulmonary vein isolation ablation market, which is expected to reach a potential $1 billion by 2022.
During the first-quarter earnings call, the company noted that its Electrophysiology recovery amid the pandemic will take place fast on upcoming strategic launches, which include POLARx, the second-generation single shot cryoablation catheter. This device will resume its European launch in the third quarter of 2020 when access to labs improves. Further, it holds optimism about the newly-launched DIRECTSENSE, which monitors the effect of RF energy delivery via changes in local impedance around the catheter tip. Boston Scientific also expects European approval for its four-sensing stable point therapeutic catheter.
Shares of the company has lost 3.9% in the past year against the industry’s 2.6% growth and the S&P 500’s 9.1% rise.
Zacks Rank & Key Picks
Currently, Boston Scientific carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Aphria Inc. APHA, Illumina, Inc. ILMN and QIAGEN N.V. QGEN.
Aphria’s long-term earnings growth rate is projected at 24.6%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Illumina’s long-term earnings growth rate is estimated at 11%. The company presently has a Zacks Rank #2.
QIAGEN’s long-term earnings growth rate is estimated at 12.2%. It currently sports a Zacks Rank #1.
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