Back to Search Start Over

Not for the faint of heart.

Authors :
Simons, John
Source :
Fortune; 8/9/2004, Vol. 150 Issue 3, p164-166, 3p, 1 Color Photograph, 1 Graph
Publication Year :
2004

Abstract

Two weeks after Boston Scientific announced a recall of some 200 of its lucrative Taxus drug-coated heart stents, the company's CEO was forced into an expansion of the initial callback. The recall is just the latest chapter in the long-running stent wars. And it will be costly for Boston Scientific. For investors who can stomach some risk, the 17% tumble Boston Scientific shares took in the week after the wider recall was announced may have created a buying opportunity. Stents--tiny wire cylinders placed in clogged arteries to hold them open--are one of the most lucrative sectors of the health-care business. Also, heart surgeons prefer Boston Scientific's Taxus over Johnson& Johnson's competing Cypher, the only other medicated stent currently on the market. Most Wall Street analysts view the stock's recent nosedive as investor overreaction. They say that as long as Boston Scientific can fix the stent delivery problems quickly, it should maintain its lead over Johnson&Johnson.

Details

Language :
English
ISSN :
00158259
Volume :
150
Issue :
3
Database :
Complementary Index
Journal :
Fortune
Publication Type :
Periodical
Accession number :
13952459