Boston Scientific Corporation (BSX.US), operating as Boston Scientific, is a manufacturer of interventional medical devices used in medical specialties, including interventional radiology, interventional cardiology, peripheral interventions, neuromodulation, neurovascular intervention, electrophysiology, surgery cardiac, vascular surgery, endoscopy, oncology, urology and gynecology. Boston Scientific is best known for the development of the Taxus Stent, a drug-eluting stent used to open clogged arteries.
Although Boston Scientific Corporation was founded in 1979, its activity linked to medicine and the development of recognition machinery as well as various surgical modalities, constitute it as one of the worldwide references that annually increases your income. Being a mature company that can be considered valuable in the stock market, investors already have a growth projection and based on that parameter we are going to analyze the company.
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One of the worst quarters that the company has published its results was the second quarter of 2020 with turnover levels equivalent to the last quarter of 2016, however an exception to the Q3 of 2020 returned to recover levels even above the same periods from the previous year. In its last publication of results for Q1 2021. Its turnover reached 2,752 million dollars, surpassing the mark of the same quarter of 2020 of 2,543 million dollars.
The resilience that Boston Scientific Corp has shown during the last quarters in which it has recovered the billing levels prior to the impact of the coronavirus shows the capacity and volume of business generated in the medical field.
Regarding its EPS, the company returns to recover levels prior to the impact of the pandemic and in its last publication of Q1 2021 showed an EPS of $ 0.23 levels close to the $ 0.30 published in Q1 2019.
Constant Innovation
One of the fundamental aspects in the success of the evolution of its income is the constant evolution in its research and development (R&D) department. With certain recurrence the company attends technological innovation congresses in the medical field and always attends with news of both new machinery and updates or improvements to existing ones.
For example, one of their latest developments published on May 25, has been to obtain European certification for a single-use bronchoscope, designed for bedside procedures in the intensive care unit, I want an operating room and a bronchoscopy room, where do they hope to launch it? to the European market in the coming weeks.
Also in the American market are pending FDA approval of glass microspheres with the name TheraSphere Y-90 to combat and treat patients with hepatocellular carcinoma. According to the description, the approval will expand access to a therapy that prolongs life for a greater number of patients than to date, had only been used under a humanitarian device exemption.
Hepatocellular carcinoma or HCC, is one of the most prevalent cancers in the world and the most common type of primary liver cancer, annually more than 500,000 new cases are diagnosed worldwide and it is treated by surgery, liver transplantation, chemotherapy or embolization. The TheraSphere Y-90 treatment aims through the glass microspheres containing radioactive yttrium, to treat liver tumors directly with a catheter reducing the invasion exposure of the surrounding healthy tissue.
Technical analysis
The company has been developing an upward trend since 2012 where its historical lows match at $ 4.79, Boston Scientific has had a parabolic behavior where its historical maximum of 2004 was retested just before the impact of the pandemic.
Since the March lows, the fall has still not been fully recovered, but taking into account that the highs prior to the decline are historical highs, a break in these levels would mark unexplored terrain that should surpass strongly.
Darío García
XTB Spain
