BSX’s stock price performance
Boston Scientific (BSX) stock fell ~7.5% on November 28, 2017, triggered by the speculation of bad news by the company, as it canceled its presentation at the Piper Jaffray Annual Healthcare Conference. As expected, the company announced a delay in Lotus Edge valve commercial launch timelines, both in the US and in Europe later during the day, after the trading hours.
The next day, on November 29, 2017, BSX stock fell ~1.7%. Peers Edwards Lifesciences (EW), Medtronic (MDT), and Abbott Laboratories (ABT) registered stock returns of ~3%, ~1.3%, and -0.23%, respectively, on November 28, 2017, while the Vanguard Growth ETF (VUG) stock rose ~0.44%.
Lotus valve related timelines and expected delay
Boston Scientific had previously communicated its plans to relaunch Lotus Edge in 1Q18 and submit a PMA (pre-market approval) application with the FDA (US Food and Drug Administration) in January 2018. BSX’s Lotus Edge had received CE Mark approval in September 2016.
However, in February 2017, the company recalled its Lotus devices, citing some concerns with their locking mechanism. Prior to the recall, Boston Scientific had planned to file PMA application in May 2017.
Boston Scientific will provide an update on the timelines of the Europe relaunch of its Lotus Edge device and the filing of its PMA application during the company’s 4Q17 earnings release on February 1, 2018.