Problems with drug-coated stents have been blamed for blood vessel blockages and clotting. Several studies showing potential dangers from implanting the devices have dropped the number of stents sold and caused a partial resurrection in the use of open heart surgery. The concerns over the devices have caused, at least in part, a haircut in the market cap of Boston Scientific (BSX). Its stock has fallen from a 52-week high of $23.96 to $15.95. Johnson & Johnson (JNJ), the other large player in the market, has not been helped by research attacking stents either.
If at first you don’t succeed, try, try again. BSX, JNJ, Medtronic (MDT), and Abbott Labs (ABT) are all headed to the FDA with a number of next generation drug coated stents. It is a bit telling. Perhaps the current stents aren’t perfect or why create new ones?
All of the new products have "improvements" that appear to make blood clotting in the arteries less likely. That is if they work.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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