Analysts Dish on Results from TCT Meeting

As always, the annual Transcatheter Cardiovascular Therapeutics (TCT) meeting, one of the cardiovascular fields largest get-togethers, includes a slew of new clinical trial results and new technology debate. This year’s installment was no different.

According to Leerink Swann analysts, let by Rick Wise, drug-eluting stents were the name of the game at this year’s TCT 2011 in San Francisco, Calif., though new technology also made waves.

Wise and his team wrote: “While drug-eluting stents still play a prominent role at this meeting—with several clinical data updates—this year, new and emerging technologies were clearly garnering the most attention. Specifically, two new interventional treatments—both with the potential to evolve into multi-billion dollar market opportunities longer term—were the focus of this year’s meeting: (1) transcatheter aortic valves (TAVI), and (2) renal denervation to treat hypertension.

The group at Leerink Swann was “incrementally encouraged about the longer-term pipeline potential for companies poised to participate in these markets.”

The current market leader for TAVI is Edwards Lifesciences Corp., Wise noted. Challengers include St. Jude Medical Inc., Boston Scientific Corp. and Medtronic Inc. Medtronic currently is “leading the way” in the hypertension market, though Boston Sci and St. Jude and have disclosed internal R&D programs, analysts said.

Here is what Wise and analysts Miroslava Minkova and Danielle Antalffy had to say:

• Boston Scientific: Progress with restructuring and longer-term Opportunities. Despite near-term headwinds, we left TCT overall encouraged that BSX’s restructuring and investment initiatives will gradually position the company for better growth and profitability over time. BSX’s fourth-generation Synergy DES and second-generation Lotus TAVI—both in development—were prominently featured at TCT. Still, BSX’s near-term sales and earnings-per-share (EPS) outlook will likely remain pressured by difficult cardio market conditions. In a BSX management dinner we hosted, Chief Financial Officer Jeff Capello emphasized that BSX remains in investment and turnaround mode.

• Medtronic: Well-positioned in the emerging opportunity to treat hypertension. Though still very early, MDT is well-positioned in a potential new multi-billion dollar market opportunity to treat chronic resistant hypertension. Via its Ardian technology, MDT is leading the hypertension market. In early stage European Union data, MDT’s Symplicity catheter demonstrated real and meaningful reductions in both systolic and diastolic blood pressure with a solid safety profile.

• Volcano Corp: Ongoing intravascular ultrasound (IVUS) and fractional flow reserve growth opportunities and a full new product pipeline. We left TCT more comfortable than we had anticipated with VOLC’s near-term growth outlook, given our increased understanding of some unusual factors—including a U.S. sales force transition—that affected 3Q11 U.S. IVUS sales results. At TCT, VOLC also highlighted a broader and deeper than ever new product pipeline—essential for VOLC to sustain its mid- to high-teens growth profile.