Boston Scientific’s Rhythm Management segment
Boston Scientific’s (BSX) Rhythm Management segment contributes around 27% to the company’s total revenues. It comprises the core business areas of Cardiac Rhythm Management (or CRM) and Electrophysiology, which contributed approximately 24% and 3%, respectively, to the company’s total revenues.
Boston Scientific’s Rhythm Management segment registered an operational sales growth of ~1% in 2015. The reported net sales, however, declined by ~5% due to the negative impact of currency headwinds. Investors interested in gaining exposure to Boston Scientific can consider the Guggenheim S&P 500 Equal Weight ETF (RSP), which accounts for ~0.25% of its total holdings in BSX.
Boston Scientific’s CRM segment offers a variety of implantable defibrillators and pacemakers. The company manufactures the world’s first and only S-ICD (subcutaneous implantable cardioverter defibrillator) system. The chart below shows the revenue growth of the CRM segment since 2012.
The CRM segment witnessed ~1% operational revenue growth in 2015. The weakness in CRM sales was primarily due to the replacement cycle headwinds and competitive product launches.
It was partially offset by the launch of the next-generation EMBLEM S-ICD system in 2015 and international growth due to new product launches. Medtronic (MDT) is one of Boston Scientific’s major competitors in the CRM segment.
The Electrophysiology business segment offers minimally invasive technologies for the diagnosis and treatment of irregular heart rate and rhythms. The Rhythmia Mapping and Navigation System and the IntellaMap Orion Mapping Catheter are the company’s leading products in the Electrophysiology segment.
Some of the other key products include the Blazer line of temperature ablation catheters, as well as diagnostic catheters such as the Blazer Dx-20, Dynamic Tip, and Viking catheters.