NEW YORK (TheStreet) -- Boston Scientific (BSX) jumped as much as 4% during Thursday's session before settling 2.7% higher to $11.48. The day's gains are the latest in a year which has seen the stock climb 100.4%.
Sparking demand during the trading day, the Natick, Mass.-based business received support from a Food and Drug Administration advisory panel for its Watchman device, a technological treatment to prevent stroke in patients prone to irregular heartbeats. The panel voted favorably in majority, 13-to-1, noting that the device's benefits outweighed its risks.
The FDA will take into consideration the panel's findings and a decision on the device's approval will likely come in the first half of 2014.
The Watchman device is a heart implant nestled in a patient's left atrial appendage and works to prevent the migration of blood clots, a factor in the incidence of stroke and embolisms in high-risk sufferers of atrial fibrillation.
To date, a common treatment in preventing strokes is a blood-thinning warfarin therapy. However, despite its proven benefits, it can lead to bleeding complications after long-term use.
"We are pleased with the outcome of today's panel, which represents an important milestone toward making this innovative technology available to patients with atrial fibrillation (AF) at higher risk for stroke who need an alternative to long-term warfarin therapy," said Boston Scientific's Chief Medical Officer Kenneth Stein in a statement.
TheStreet Ratings team rates Boston Scientific Corp as a Buy with a ratings score of B-. The team has this to say about their recommendation:
"We rate Boston Scientific Corp (BSX) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."