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On Tuesday, Boston Scientific Corporation (NYSE:BSX) announced the discontinuation of its ACURATE neo2 and ACURATE Prime valves globally and the halt of its pursuit for FDA approval for its TAVR platform in the United States and other regions. JPMorgan analyst Robbie Marcus has maintained an Overweight rating and a $135.00 price target on the company’s stock, despite the recent developments. According to InvestingPro data, this development could benefit Edwards Lifesciences (NYSE:EW), a key competitor with a market capitalization of $45.24 billion and strong financial health metrics.
The decision to stop sales and not seek FDA approval follows Boston Scientific’s delayed submission to the FDA and the ACURATE neo2 valve’s failure to meet non-inferiority benchmarks against competitors Edwards and Medtronic (NYSE:MDT) in its IDE study. Discussions with regulators indicated that meeting the increased clinical and regulatory requirements to maintain and obtain new approvals would be challenging.
Marcus noted that after the initial announcement of the pause in U.S. commercialization efforts and the failed IDE, JPMorgan had already removed all U.S. sales from its model and forecasted flat growth for international ACURATE sales. The discontinuation of the product line is expected to reduce revenue by approximately $200 million moving forward, but Marcus pointed out that this likely won’t significantly impact margins as the business was sub-scale. Edwards Lifesciences, meanwhile, maintains impressive gross margins of 79.5% and has seen revenue growth of 8.23% in the last twelve months.
Despite the revenue adjustment, Boston Scientific management is reiterating its reported revenue growth, organic revenue growth, and adjusted EPS for the second quarter of 2025 and the full year. Marcus commented on the decision to discontinue the product, stating, "While this likely takes some near-term upside off the table, we don’t think this changes the narrative on Boston and see this as the right long-term strategic decision for the company." For deeper insights into Edwards Lifesciences and its competitors, InvestingPro subscribers can access comprehensive financial health scores and 12 additional ProTips that help evaluate investment opportunities in the medical devices sector.
The analyst also suggested that the discontinuation might marginally benefit competitors Edwards Lifesciences (EW), Medtronic (MDT), and Abbott Laboratories (NYSE:ABT). He concluded by encouraging investors to consider buying Boston Scientific shares if any significant price decline occurs following this announcement.
In other recent news, Edwards Lifesciences has received FDA approval for its SAPIEN 3 transcatheter aortic valve replacement platform for patients with severe aortic stenosis who are asymptomatic. This marks a significant development as it is the first time the FDA has endorsed TAVR therapy for individuals without symptoms. Piper Sandler has raised its price target for Edwards Lifesciences to $83, maintaining an Overweight rating, citing potential regulatory developments that could enhance the company’s growth prospects. Additionally, Stifel has reiterated a Buy rating with a $90 price target, expressing optimism about the company’s TAVR product line and its growth potential. In a strategic shift, Boston Scientific has discontinued its ACURATE aortic valve systems, which may benefit Edwards Lifesciences by reducing competition in the market. Piper Sandler has also upgraded Edwards Lifesciences from Neutral to Overweight, raising the price target to $80, based on the company’s promising growth outlook. These recent developments underscore Edwards Lifesciences’ strategic positioning and potential for growth in the cardiovascular treatment sector.
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