How Important Is Endoscopy Business For Boston Scientific’s Stock?

by Trefis Team
Boston Scientific
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Boston Scientific’s (NYSE:BSX) Endoscopy business refers to the company’s devices to diagnose and treat a broad range of gastrointestinal and pulmonary conditions. The offering includes SpyGlass, Resolution, Epic, Acquire, and the AXIOS range of products. It is an important segment for the company, and accounts for roughly 18% of its stock value, according to Trefis estimates. We have created an interactive dashboard analysis ~ How Important Is Endoscopy For Boston Scientific’s Stock? You can adjust various drivers to see the impact on the segment’s earnings, and its contribution to the company’s overall price estimate. Also, here is more Healthcare data.

How Has The Endoscopy Business Been Faring?

  • Segment sales grew at a CAGR of 6.4% over the last 5 years.
  • Revenues of $1.76 billion in 2018 reflected a 9% y-o-y growth, and accounted for 18% of the total revenue mix.

What’s Driving This Growth?

  • Higher sales of its Resolution 360 Clips, SpyGlass DS Direct Visualization System, as well as Acquire Endoscopic Ultrasound Fine Needle Biopsy Device.
  • These devices offer advantages to physicians, thereby boosting the overall demand.
  • For instance, Resolution 360 Clip enables a physician to provide controlled clip placement, designed for procedural accuracy.
  • Similarly, SpyGlass DS Direct Visualization System’s ease of setup, use, and higher image quality optimizes the procedural efficiency.
  • The overall endoscopy devices market has also seen steady growth in the past years, aiding Boston Scientific’s sales growth.

What To Expect In The Near Term?

  • We forecast the Endoscopy revenues to grow 9% in 2019 to $1.92 billion.
  • This growth will likely be led by continued demand for its products, primarily the Resolution and SpyGlass range.
  • The overall expansion of the endoscopy devices market will aid the company’s sales growth.
  • Global endoscopy devices market is estimated to grow at a CAGR of 6% to $38.5 billion by 2024.

What’s The Contribution of Endoscopy To Boston Scientific’s Share Price?

  • We estimate that Endoscopy accounts for 18% of the company’s stock value.
  • Our estimate is based on $1.92 billion revenue potential, net income margin of 20.4%, similar to that for the overall company, and a forward price to earnings multiple consistent with the current 24x.


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