The problem with buying companies heavily involved in one market is that if the market experiences a heart attack, the company suffers greatly. That's what happened to Boston Scientific
Last week, Boston Scientific announced that it had received European marketing approval for its LIVIAN cardiac resynchronization therapy defibrillator (CRT-D). The implantable device monitors heartbeats in patients and delivers a small electrical impulse to reset the heart should it get out of rhythm.
The device is still under review by the FDA, but with 6.5 million people in Europe suffering from heart failure, the European approval should give Boston Scientific a revenue boost even if the U.S. approval is delayed.
This is Boston Scientific's first approval of a branded cardiac rhythm management device to treat heart failure. With Medtronic's
This increased diversification should be a welcome relief for shareholders. In the most recent quarter, sales of stents were down 22% year over year in a segment that accounted for 22% of Boston Scientific's revenue. And even if the stent market turns around, which I think is likely, Boston Scientific is going to see steep competition next year.
With both Medtronic and Abbott Laboratories
More Foolishness to keep your blood flowing:
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- Vital Signs at Medtronic
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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Johnson & Johnson is a selection of the Income Investor newsletter. The Fool has a disclosure policy.