Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):
TRACKING THE NUMBERS: Investors Exit Vehicles to Limit Hedge-Fund Risk
Summary: For the first time, a stent maker has acknowledged the increased risk of "late stent thrombosis" (blod clots appearing in the stent after a few months) with its product. Boston Scientific (NYSE:BSX) disclosed that its internal analysis of clincial data on its stent showed an increased risk of blood clots. Although Boston Scientific does not think that the increased clotting risk is unique to its product, their chief medical officer said "The right thing for us to do as responsible manufacturers is, when we have evidence of an issue, to go forward with regulators".
Comment on related stocks/ETFs: This news follows Boston Scientific's disclosure of problems with their pacemakers and defibrillators. Stents are big business (to the tune of $5 billion a year), with Boston Scientific and Johnson & Johnson (NYSE:JNJ) as the leading manufacturers. A competitor, Xtent (NYSEMKT:XTNT) recently filed an IPO . Of additional concern: Johnson & Johnson recently forecasted slower growth for medical devices.