How Much Can Boston Scientific’s Cardiac Rhythm Management Business Grow In The Near Term?

by Trefis Team
Boston Scientific
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Boston Scientific’s (NYSE:BSX) Cardiac Rhythm Management business accounts for roughly 20% of the company’s value, according to Trefis estimates. It includes products such as pacemakers and implantable cardioverter defibrillators (ICDs) that are used to treat abnormal heart conditions. Cardiac rhythm management revenues of $1.95 billion in 2018 accounted for 20% of the company’s total sales, and a growth of 3.0% over the prior year. The growth in last year was higher than the CAGR of 0.7% (2014-2018).  This can be attributed to higher demand for its Resonate family of devices. The business grew at 3% even in Q1, 2019, led by the Resonate platform as well as strong growth of the Emblem defibrillator, which is a subcutaneous implantable defibrillator that provides protection for patients at risk for sudden cardiac death while avoiding risks and complications associated with transvenous leads.

Looking forward, the business is expected to grow in low single-digits, primarily led by the Resonate product line. However, any significant growth is unlikely given the competition. Other players, such as Abbott, have been able to stabilize their rhythm management business. Medtronic’s Micra also got the U.S. FDA approval, and it is the smallest pacemaker available in the market. Increased competition could limit the segment growth for Boston Scientific. While the global cardiac rhythm management devices market is expected to grow at a CAGR of 7.80% over the next few years, Asia-Pacific is expected to grow at the fastest pace. Asia-Pacific contributed only 17% to Boston Scientific’s overall sales in 2018. It will be interesting to see how the market expansion could bode for Boston Scientific in the medium run. You can view our interactive dashboard analysis ~ How Did Boston Scientific Fare In Q1, And What Can We Expect From Full Year 2019? for more details on the key drivers of the company’s expected performance. In addition, you can see more of our data for Healthcare companies here.


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