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Structural Heart: Boston Scientific’s Key Growth Driver in 2019

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Structural Heart revenue trends

On its first-quarter earnings conference call, Boston Scientific (BSX) guided for revenue of $700 million–$725 million for its IC (Interventional Cardiology) or Structural Heart business based on the anticipated uptake of its WATCHMAN, ACCURATE, LOTUS EDGE, and SENTINEL products. In the first quarter, the company reported revenue of $661 million in the business, YoY (year-over-year) rises of 2.5% on a reported basis, 6.2% on an operational basis, and 4.8% on an organic basis. The company expects the launch of Promus ELITE, the FDA’s approval of LOTUS EDGE, and the improved YoY performance of its coronary drug-eluting stents to fast-track its IC revenue performance in the remaining quarters of 2019.

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According to the 37th Annual J.P. Morgan Healthcare Conference, while the company reported close to $425 million in revenue in its IC business in 2018, it expects to target a market opportunity worth $8.0 billion for this segment by 2022. Increasing adoption of TAVR (transcatheter aortic valve replacement), embolic protection, and mitral repair technologies as well as the international market penetration of its left atrial appendage closure device, WATCHMAN, are expected to be key revenue drivers for the company’s IC business.

LOTUS EDGE growth trajectory

Boston Scientific faced a roadblock in its TAVR growth strategy in February 2017, when the company had to voluntarily recall its LOTUS and LOTUS EDGE systems from Europe due to issues identified in their delivery systems.

The problem started resolving in the later part of the first quarter, when the LOTUS EDGE was relaunched in Europe in a controlled manner. On April 23, the FDA also approved the LOTUS EDGE for the treatment of high-risk aortic stenosis patients. This approval made Boston Scientific the third player in the TAVR space after Medtronic and Edwards Lifesciences. Boston Scientific is also enrolling patients in the REPRISE IV clinical trial to evaluate the LOTUS EDGE system in the treatment of intermediate risk aortic stenosis patients.

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