One-third of the ICD market up for grabs

A survey of physicians by Majestic Research found that Boston Scientific's March 15 decision to withdraw from the ICD market will have a meaningful long-term impact. Among surveyed electrophysiologists, 56% report the recent announcements and actions have negatively impacted their perceptions of the overall quality of Boston Scientific's ICD devices and 52% said that they would be less likely to use the company's devices in the future.

“Boston Scientific's decision to suspend sales puts one-third of the market up for grabs, an extraordinary opportunity for those positioned to supply the market in the interim”

The study found that Boston Scientific's withdrawal has provided an opening for competitors, which may disproportionately benefit St. Jude. "Boston Scientific's decision to suspend sales puts one-third of the market up for grabs, an extraordinary opportunity for those positioned to supply the market in the interim," said Philip Legendy, Director and Senior Medical Device Analyst at Majestic Research. "Given their historical sales footprint, we expected to see Medtronic (MED) outpacing St. Jude's (STJ) share of the new business at a ratio of about 2 to 1. Our study suggests, however, that St. Jude is running only 13 points of share behind Medtronic in converting physicians who formerly preferred Boston Scientific ICDs."

Majestic Research's Boston Scientific ICD Withdrawal study encompasses analysis of a targeted Internet survey of 70 electrophysiologists who were surveyed from March 18 to March 24, 2010. The study evaluates physician response to the announcement and field action, the long-term impact on BSX's ICD devices and overall BSX brand, which competitors will benefit, and what messaging, if any, has been communicated by sales representatives.