Coated stents cost more than un-coated ones. Putting the drugs onto the coated stents must add expense. But, that means that coated stents make more money for Boston Scientific (BSX) and Johnson & Johnson (JNJ).
The problem with coated stents is that there have been several reports that indicate that they can create adverse health problems, so their share of total stent sales is dropping, and is now down to about 72% of the market.
The financial difference is a big one. Drug coated stents run about $2,300 each compared to $800 per for the bare metal ones.
The whole set of issues around the potential dangers of drug coated stents has not helped BSX shares. The have dropped almost 50% over the last two years to about $15. And, it does not look like any help is on the way.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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