Put back the crash carts. Boston Scientific is up and walking. A sharp decline in coated drug stents, brought on by studies that they may cause heart problems, has not significantly hurts sales. The FDA, after a survey of its own, has not restricted use of the devices.
According to analysts at several Wall St. firms drug coated stents will keep a 75% to 80% share of the market. At Boston Scientific, sales of the stents represent 25% of sales. If the market in the product stabalizes, it could be the event that helps repair the company’s image which has been damaged by worries about stent sales and problems with products from its Guidany unit.
Boston Scientific’s stock has been pounded like a red-headed mule as concerns about stents and problems with Guidant have mounted. The stock traded for $36 two years ago and now changes hands at a little over $16. While the S&P is up close to 20% over the 24 months, BSX stock is off by slightly over 50%.
With stents back in fashion, it is now or, perhaps, never for a BSX recovery.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Top Gaining Stocks
Top Losing Stocks