Tomahawk, WI 01/22/2014 (BasicsMedia) – Investors in Boston Scientific Corporation (NYSE:BSX) know when bad news is actually good news. The company has halted ongoing clinical trails in some pipeline drugs, yet the investors have reposed the faith in the company.

Halt in Clinical Trials

Hypertension has now assumed epidemic proportions as increasingly younger people are being diagnosed with it. Once considered the disease of middle aged and the old, it is now striking the younger generation and the medical fraternity is blaming our sedentary lifestyle, our stress filled lives and poor eating habits for this. Now, any drug which can treat this would be a boon to all. Yet news that Boston Scientific Corporation (NYSE:BSX) is halting trials on a new drug did not get it punched at the Wall Street. It was perhaps the growing realization that putting more money in a dead end would not yield any positive results. Boston has put the development under hold till it studies why its competitor’s offering did not show positive clinical trial results. The process adopted by the company as well as its competitor is called renal denervation and it works by damaging nerve cells that are responsible for blood pressure. Clinical trials are an expensive proposition and even though the FDA is behind the company, it has taken a wise decision. The product is available in Europe for sale.

A Healthy Pipeline

This product was expected to drive Boston Scientific Corporation (NYSE:BSX) back to profits after posting losses in the six years out of consecutive seven years. Boston has several other products in the pipeline. In fact the product portfolio has improved in the last three years as the company seeks to reduce dependence on devices that regulate heartbeats and rhythm and stents. One product, the Watchman device, works by closing the left atrial appendage. This is an extraneous area and clots often form here leading to strokes. It is expected to get approval by the second quarter of 2014 and the company expects the market to grow to $500 million per year and most important, there are yet no competitors in the market. Even its S-ICD defibrillator is unique; it can restore electrical activity in the heart without connecting wires. These wires or leads in technical jargon have been prone to failure in the traditional defibrillator. The production was stopped in the second and the third quarter on account of manufacturing problems but has since commenced. The company resumed selling them in the fourth quarter. The market is expected to grow to $750 million by 2017 and again there are no rivals in sight.

Boston Scientific Corporation (NYSE:BSX) is set to declare its fourth quarter and full fiscal report on February 4, 2014 before markets open.

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