Boston Scientific (BSX) investors cringe every time a new study comes on about the long-term health hazards of stents. The drum beat has helped drop the share price from over $33 two years ago to the present $16.
And, the blood-letting may not be over. The New York Times is reporting the medical community may be turning to heart bypass surgery more often in favor of implanting stents. The stakes are very high. One million patients received stent implants in the US during 2006.
The money involved gives a clue to why stent use has gone up. Doctors in the fields that handle stent implants have seen their compensation rise and heart surgeons have seen a drop-off in their income. A cynical view? Maybe.
Some studies now show that bypass surgery may help a number of patients to live longer. That is not good news for the stent manufacturers, but it may be good news for those who have cardiac problems.
As long as the debate about stent effectiveness and safety continues to pit doctors and researcher against each other, BSX stock is likely to stay beaten down.
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