Shares of Boston Scientific Corporation (BSX) climbed 0.7% to $74.61 in Tuesday afternoon trading, attempting to stabilize following a sharp 2.8% decline on Monday. Trading volume reached approximately 9.1 million shares by the early afternoon.
Electrophysiology Business in Focus
The stock's recent volatility stems from investor scrutiny of the company's electrophysiology division, which produces devices for treating heart rhythm disorders. This segment faced pressure after its quarterly sales growth, while strong at 35%, fell short of some Wall Street expectations last week, contributing to a significant pullback from the stock's 52-week high.
Farapulse Data Provides Support
New clinical data presented at a recent symposium offered a positive counterpoint. A four-year follow-up study for the company's Farapulse pulsed field ablation (PFA) system showed a treatment success rate of 72.8%, outperforming the 64.1% rate for traditional thermal ablation. The data also indicated no long-term safety concerns, reinforcing the platform's competitive profile. Analysts from firms including Truist and Citi have noted robust demand for PFA technology, though rivals like Johnson & Johnson and Abbott are also advancing competing systems.
On Monday, BSX shares fell 2.8% to close at $74.12, underperforming a broader market gain. Trading volume that day was notably high at 21.1 million shares.
Next Major Catalyst: CHAMPION-AF
The next significant event for the company is the release of primary results from the CHAMPION-AF clinical trial. The data is scheduled for presentation on March 28 at the American College of Cardiology's annual meeting. This study evaluates Boston Scientific's Watchman FLX device, which is designed to close off a part of the heart to prevent strokes in atrial fibrillation patients, comparing it to standard blood-thinner medications.
The outcome of this trial is highly anticipated, as it could support expanded use of the device. However, the market remains sensitive to any signs of slowing growth or increased competition in Boston Scientific's core heart-rhythm business. For now, the stock appears caught between encouraging clinical data for Farapulse and the need for the business to deliver on its growth targets, with all eyes on the late-March readout.
