A reprieve for Boston Scientific

Posted Dec 28th 2006 12:49PM by Douglas McIntyre
Filed under: Analyst Reports, Boston Scientific (BSX)

Put back the crash carts. Boston Scientific (NYSE:BSX) is up and walking. A sharp, short-term decline in use of drug coated stents, brought on by studies that show they may cause heart problems, has not significantly hurts sales overall. The FDA, after a survey of its own, has not restricted use of the devices.

According to analysts at several Wall Street 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 stabilizes, 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 Guidant 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 is a partner at 24/7 Wall St.

Tags: Boston Scientific, BostonScientific, drug coated stent, DrugCoatedStent, FDA, Guidant, stent

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Reader Comments (Page 1 of 1)

1-27-2007 @ 7:37PM

justin dumas said...

I don't know where you are getting your information from, but Sirius has been turning a profit since this summer and was rumored to purchase xmradio next year. Never mentioned filing for bankruptcy. You need to get your information correct before posting a lame ass article.

1-31-2007 @ 6:38PM

Jim Bufkins said...

Great article. The turnaround has arrived at BSX. The FDA is approving or extending approvals almost daily of their products. This is a terrific buy and the time to buy is now. There has been nothing but good news coming out of BSX over the past month. Their back on track in a big way and this should be on everyone's Strong Buy list.

JimBNorman