Boston Scientific Corporation BSX recently announced favorable three-year primary endpoint data from the OPTION global clinical trial for its WATCHMAN FLX Left Atrial Appendage Closure (“LAAC”) device. The trial data provided clinical evidence indicating that LAAC with the WATCHMAN FLX device is safe and superior to oral anticoagulation (OAC) therapy for reducing the risk of long-term bleeding events in patients who have undergone an ablation. 

The OPTION trial data were presented at the American Heart Association's Scientific Sessions 2024 and published in the New England Journal of Medicine.

BSX’s Likely Stock Trend Following the News

Following the announcement, shares of BSX moved north 4% to $90.45 yesterday. The company’s structural heart programs are building momentum, banking on the strong performance of the WATCHMAN LAAC device. The next-generation WATCHMAN FLX and FLX Pro are strongly capturing the global market. In the third quarter of 2024, WATCHMAN’s organic sales grew 18% year over year. Accordingly, we expect market sentiment to remain positive surrounding the announcement. 

BSX currently has a market capitalization of $128.1 billion. It has an earnings yield of 17.1%, much higher than the industry’s 12.6%.

More on WATCHMAN FLX’s Favorable Trial Data

The trial met the primary safety endpoint of non-procedural major bleeding or clinically relevant non-major bleeding at 36 months. In line with this, the WATCHMAN FLX device was found to be superior to OAC. Notably, trial data showed high rates of procedural success in patients who had a WATCHMAN FLX implant after an ablation, which reinforced positive outcomes such as low rates of ischemic and hemorrhagic stroke within the trial population. These positive primary outcomes indicate that patients receiving the WATCHMAN FLX device can eliminate long-term medication use while maintaining stroke protection.

With this positive data, the company aims to expand the indication for the WATCHMAN FLX platform. 

About OPTION Trial

The randomized, controlled OPTION trial included 1,600 patients enrolled across 114 sites in the United States, Europe and Australia. In the trial, approximately 60% of device patients had their WATCHMAN FLX implant 90-180 days following their ablation procedure. Nearly 40% of the other device patients had the two procedures performed concomitantly, with the WATCHMAN FLX implant taking place after the ablation.

The study compared the device with first-line OAC therapy, which included direct oral anticoagulants (DOAC) (95%) and warfarin (5%) for stroke risk reduction in patients with non-valvular atrial fibrillation following a cardiac ablation. 

More on the News 

In addition to the OPTION trial, the WATCHMAN technology is being evaluated against DOAC therapy in lower-risk patients within the CHAMPION-AF randomized trial. The latest-generation WATCHMAN FLX Pro LAAC device is similarly being studied in several clinical trials, including the SIMPLAAFY randomized controlled trial, which is evaluating a single-drug alternative to dual antiplatelet therapy as a post-procedural regimen.

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Industry Prospects Favor BSX

According to a Precedence Research report, the global left atrial appendage closure devices market is projected to grow around $7.01 billion by 2034, at a compound annual growth rate of 14.1% from 2024 to 2034. The rising prevalence of atrial fibrillation and rising government initiatives contribute to the market's growth. Technological advancements are also promoting growth. 

BSX’s Recent Development

The company recently acquired Axonics, Inc. at an equity value of $3.7 billion.  

BSX’s Price Performance

In the past year, shares of BSX have risen 66.1% compared with the industry’s 21.4% growth. 

BSX’s Zacks Rank and Key Picks

BSX currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Haemonetics HAE, Globus Medical GMED and ResMed RMD. While ResMed carries a Zacks Rank #1 (Strong Buy), Haemonetics and Globus Medical carry a Zacks Rank  #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.39%. Its shares have risen 1.8% compared with the industry’s 23.1% growth in the past year.

Estimates for Globus Medical’s 2024 EPS have remained constant at $2.84 in the past 30 days. Shares of the company have surged 60.6% in the past year compared with the industry’s growth of 32.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 12.1%. In the last reported quarter, it delivered an earnings surprise of 10.3%.

Estimates for ResMed’s fiscal 2025 EPS have risen 2.7% in the past 30 days. Shares of the company have surged 86.3% in the past year compared with the industry’s 32.1% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.

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