Continue reading Closing Bell: The Return of Some Normalcy ... (AYE, FE, JASO, ALU, BSX, ATVI, ERTS)

Closing Bell: The Return of Some Normalcy ... (AYE, FE, JASO, ALU, BSX, ATVI, ERTS) originally appeared on BloggingStocks on Thu, 11 Feb 2010 16:10:00 EST. Please see our terms for use of feeds.

Things seemed to be going so well for medical device maker Medtronic (NYSE: MDT). It recently got FDA approval for its drug coated stent, a product that holds clogged arteries open. At over $56, its stock had moved near a 52-week high.

The few days of celebration ended abruptly. The company warned that a wire in its newest defibrillator models has malfunctioned in hundreds of patients. It may have even caused several deaths. According to The New York Times, a defibrillator is a "device that shocks faltering hearts back into normal rhythm." The company is asking that 235,000 patients see their doctors to check for the defect. The Times also writes that replacing the wire on a heart device like a defibrillator is considered by experts to be far more dangerous than replacing the device itself.

The announcement points to one of the problems that big medical device companies face as their products become more complex. Boston Scientific (NYSE: BSX) has recently lost significant revenue as studies have shown that its drug coated stents may cause blood clots in the heart. That and other problems have taken the company's stock from over $27 less than two years ago to $15 in recent trading.

It is too early to say what may have caused the defect in the Medtronic device, but if there is a hint that the defect was discovered some time ago or that the product's flaw was due to faulty manufacturing, some smart attorney will be filing a class action suit before the year's end.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Medtronic (MDT) heart device raises major health concern originally appeared on BloggingStocks on Mon, 15 Oct 2007 09:28:00 EST. Please see our terms for use of feeds.