|Courtesy of Boston Scientific|
Boston Scientific ($BSX) has been reeling from falling sales of cardiac devices, posting mid-single-digit declines quarter after quarter and shedding jobs by the hundreds over the past year. But new CEO Mike Mahoney sees a way out, and September's FDA approval of the S-ICD plays a big part in his strategy of cranking out innovative devices to fill unmet needs in the market.
The S-ICD is the first subcutaneous implantable cardiac defibrillator approved in the U.S., implanted just below the skin and eschewing the invasive surgery required with traditional ICDs. The fall approval came ahead of Boston Sci's predicted timeline, and the company is in the midst of a phased launch for the device, training surgeons around the country on how to implant the S-ICD.
Boston Sci got its hands on the device in June, closing a $150 million buyout of Cameron Health. Under the deal, Boston Sci paid out another $150 million upon approval and is on the line for up to $1 billion in royalties if the device meets certain sales goals.
But the price tag is well worth it if the S-ICD can reverse the company's heart fortunes. In 2012, CRM revenue plunged 9% over the year before, and interventional cardiology declined 13%. Now, with the S-ICD and a stable of MRI-safe pacemakers in the pipeline, Boston Sci is plotting a return to revenue growth.