Boston Scientific Focuses Growth Strategy on Emerging Markets

Boston Scientific Corporation has introduced its lead-free subcutaneous implantable cardioverter defibrillator (S-ICD) in the Asia Pacific market. Recently, the first implant of the S-ICD was performed in Hong Kong.

The acquisition of Cameron Health in 2012 gave Boston Scientific access to the S-ICD system. According to the company, the S-ICD system is the only subcutaneous implantable defibrillator that provides protection from sudden cardiac arrest while leaving the heart and vasculature untouched. It is minimally invasive, and is purported to substitute the transvenous implantable cardioverter defibrillator (TV-ICD) that requires leads to be placed in the heart.

Though this system is commercially available in Europe and has received the U.S. approval in 2012, it has yet to create its foothold in the densely populated Asia market. With recent data showing almost a 2 million unprotected population in Asia Pacific at risk of SCA, the company expects S-ICD, once marketed, to capture a solid grasp over this untapped market.

Against the backdrop of flattening or declining sales growth in developed markets such as the United States and Europe, Boston Scientific is gradually strengthening its presence in emerging markets with countries such as Brazil, Russia, India and China recording a more than 8 percent growth on a combined basis during fiscal 2013.

A major aspect of the company’s growth strategy is to continue pursuing development opportunities outside the United States by expanding global presence, inclusive of the emerging markets. Recently, Boston Scientific created a new Asia-Pacific regional organization to further increase capabilities and strengthen its position in this fast-growing region.

Boston Scientific plans to invest approximately $150 million in China, which is one of the world’s fastest growing and largest medical devices markets, over the next 5 years to build a local manufacturing operation to cater to Chinese market needs and develop a training center for healthcare providers. According to the company, emerging markets should experience accelerated growth as it expects sales therein to increase from 8 percent of total sales in 2013 to 15 percent in 2017.

Boston Scientific is a medical device company headquartered in Natick, Mass.