Medical device maker Boston Scientific said its Q2 profits fell a greater-than-expected 34% to $271 million ($0.18/share adjusted), down from $412M ($0.31/share) a year ago. Analysts forecasted a $0.19/share profit. Revenue fell 2% to $2.07B, missing analyst estimates of $2.09B. Sales of the company's flagship coated coronary stent systems slumped 32% to $437 million, compared to $647 million for Q2 2006 and $468 million last quarter. Coated stents release scar-suppressing medicines which reduce the need to repeat procedures. They cost about $2,100 each. But a March study found that coated stents didn't prevent the risk of further heart attacks any better than the use of blood-thinning drugs. Sales have since declined as doctors began prescribing metal versions costing $800. Sales of J&J's competing Cypher stent fell 35% to $450 million over the same period. Shares are down 11.7% YTD, and have lost another 1.8% in pre-market trading to $14.90. The company scheduled an earnings call for 8:30 am ET (see transcript later today).
Sources: Press release, Reuters, Bloomberg, Reuters
Commentary: The Long Case for Boston Scientific • Bypassing Surgery - Will Stents Survive The Bad News? • Biotechs Develop New Generation of Drug-Eluted Stents
Stocks/ETFs to watch: Boston Scientific Corp. (BSX). Competitors: Johnson & Johnson (JNJ)
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