BSX's Neuromodulation Prospect Looks Strong: What's Behind It?

The rising incidences of chronic pain, neurological disorders and mental health conditions continue to drive the demand for global neuromodulation devices. According to Grand View Research, the market is projected to witness a CAGR of 8.51% through 2030, further aided by technological advancements that are enabling more sophisticated minimally invasive tools. Boston Scientific BSX continues to hold a leading position in this expanding market.

In the third quarter of 2025, the company’s Neuromodulation business delivered sales growth of 9%, extending its impressive momentum for the year. The Brain franchise grew in the low single digits, supported by the five-year results from the INTREPID study, which demonstrated sustainable benefits of Deep Brain Stimulation (“DBS”) in patients with moderate to advanced Parkinson's disease. The adoption of the Cartesia X/HX leads and Illumina 3D has been strong in the United States, both of which drive optimized patient outcomes.

Acquisitions are also central to the company’s expansion. The Relievant acquisition (2023) is driving strong accretive growth, adding the Intracept Intraosseous Nerve Ablation System to treat vertebrogenic pain. Boston’s Scientific Pain franchise grew in the high single digits in the third quarter, led by strong double-digit growth in the United States with the Intracept. In July, the company announced the CE mark of the Intracept system and is set to initiate a limited market release of the Intracept system in Europe, the Middle East and Africa over the coming months.

Boston Scientific also recently entered into a definitive agreement to acquire the remaining stake in Nalu Medical for an upfront cash payment of approximately $533 million. The addition broadens its Neuromodulation offerings into the peripheral nerve stimulation adjacency, creating a new growth avenue, and complements its commercial strength in the interventional pain position.

BSX’s Peer Updates

Medtronic MDT delivered 4.5% year-over-year growth in the Neuroscience Portfolio, reaching $2.56 billion in the second quarter of fiscal 2026. Neuromodulation rose 7%, with both Pain Stim and Brain Modulation posting high-single-digit gains as the company continued rolling out the Inceptiv spinal cord stimulation and BrainSense Adaptive DBS systems.

Meanwhile, Abbott’s ABT Neuromodulation sales grew 7% year over year in the third quarter of 2025, led by the strong performance of the Eterna rechargeable spinal cord stimulation device in international markets, reflecting both continued adoption in existing markets and introductions in new markets.

BSX Price Performance, Valuation and Estimates

In the past 12 months, Boston Scientific shares have risen 10.1% against the industry’s 0.6% fall.

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In terms of valuation, Boston Scientific shares trade at a forward five-year Price-to-Sales (P/S) ratio of 6.68 compared to the industry average of 2.98.  

Earnings estimates for Boston Scientific are showing an upward trend, as you can see.

BSX stock currently carries a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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