Boston Scientific is enhancing its ICD (implantable cardioverter defibrillator) device portfolio with its latest acquisition of Cameron Health for $1.35 billion. Being the first to market with such a unique product will allow them to capture a significant portion of the ICD market, one valued at over $3.5 billion. Cameron Health is a private company that has developed a unique subcutaneous implantable cardioconverter which does not require leads to pass through veins and into the heart. Cameron’s S-ICD System is placed just below the skin and does not touch blood vessels or the heart. This ICD was FDA approved in September 2013 and is the only one that is commercially available and will likely change ICD therapy considerably. The S-ICD System dramatically reduces the risk of dangerous infections in or near the heart, as well as some other lead-related problems.
The ICD market is a relatively rapidly growing market, with new devices and technologies being introduced regularly. Additionally, Boston Scientific has introduced other innovative products such as the WATCHMAN® Left Atrial Appendage Closure Device and Alair® Bronchial Thermoplasty System for the treatment of severe asthma. Over the next few years, new technology will primarily take the form of miniaturization, improved software, wireless connectivity, increased battery life, MRI-safe capabilities, and hemodynamic sensing. While the average selling price of ICD devices is still expected to decrease over the next few years, the introduction of new technologies will prevent a significant decline. Battery technology is key for ICDs as they require more power to operate than do pacemakers. In addition, improvements that reduce electronic and housing failures and the risk of device infection will also increase the adoption rate and prices of ICDs.
Hank Kucheman, Chief Executive Officer of Boston Scientific, said:
“With Cameron, we gain a strong, experienced team of professionals who are pioneers in this novel technology, and we are thrilled to welcome them to Boston Scientific. The acquisition of Cameron Health builds on Boston Scientific’s commitment to introducing innovation in the CRM space and represents an important part of our strategy to generate top-line revenue and market share growth.
We believe that the S-ICD System represents a breakthrough treatment for patients at risk of sudden cardiac arrest and strengthens our ability to deliver value to physicians, their patients and healthcare systems around the world.
We expect that the S-ICD System, combined with recent ICD and CRT-D launches, upcoming pacemaker launches, and the recently acquired WATCHMAN® left atrial appendage closure device, will create a compelling and highly differentiated portfolio of arrhythmia management products.”
Kevin Hykes, President and CEO of Cameron Health, said:
“The S-ICD System was designed to eliminate the complications associated with transvenous leads, creating an important new treatment option for patients at risk of sudden cardiac arrest. We look forward to joining the Boston Scientific team, which will allow us to expand our commercialization efforts and bring this proven therapy to more patients around the world.”
The report also states that companies such as Bard (NYSE: BCR), Biosense Webster, Cardiac Science (NASDAQ: CSCX), Medtronic (NYSE: MDT), Philips, St. Jude Medical and Zoll lead the market, among many others.
iData’s global 3-report series on the Markets for CRM, Electrophysiology and Ablation Devices covers pacemakers, CRTs, ICDs, cardiac stimulation leads, external-defibrillators, ablation and EP catheters, electrophysiology stimulators and cardiac monitoring devices.