Boston Scientific, The Last To Know (BSX)
Boston Scientific now says that it has clinical evidence that its drug-coated stents can cause clotting months after they are put into the heart. Cardiologists have been saying this for over a year.
The implications of this to patients and the stock price of Boston Scientific could be severe. According to the Wall Street Journal more than a million people get the devices each year, so the stents could actually become a public health issue.
Aside from the potential loss of life, Boston Scientific may now be faced with lawsuits and a drop in its revenue. J&J also makes drug coated stents.
Boston Scientific's stock has dropped from a 52-week high of $27.82 to $17.27.
Revenue growth at BSX over the last three years has been amazing. The topline in 2003 was $3.5 billion. In 2005, it was $6.2 billion. Over the last four quarters, the growth has continued.
Morningstar projects 10% revenue growth a year for BSX over the next four years. If the stent problem is severe, that may just be a nice dream.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own shares in companies that he writes about.
The implications of this to patients and the stock price of Boston Scientific could be severe. According to the Wall Street Journal more than a million people get the devices each year, so the stents could actually become a public health issue.
Aside from the potential loss of life, Boston Scientific may now be faced with lawsuits and a drop in its revenue. J&J also makes drug coated stents.
Boston Scientific's stock has dropped from a 52-week high of $27.82 to $17.27.
Revenue growth at BSX over the last three years has been amazing. The topline in 2003 was $3.5 billion. In 2005, it was $6.2 billion. Over the last four quarters, the growth has continued.
Morningstar projects 10% revenue growth a year for BSX over the next four years. If the stent problem is severe, that may just be a nice dream.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own shares in companies that he writes about.
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