Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
HEARD ON THE STREET: Coated Stents Deliver Heartburn [Wall Street Journal]
Summary: While many medical device manufacturers have recently invested heavily in a special kind of drug-coated stent that is supposed to keep diseased arteries from closing back up, many on Wall Street believed that it is the stent industry which is in greatest need of repair. According to medical-products analyst at KeyBanc Capital Markets Robert Goldman, "The growth prospects for drug-eluting stents are poor, certainly in the immediate and near term... [with] safety concerns are exacerbating the problems and making the prospects for the market all the worse." The magnitude of the market - $5.4 billion in annual sales - has led companies such as Johnson & Johnson, Boston Scientific and Abbott Laboratories to place big bets on drug-coated stents, thus far to uneven returns.
Related links: Commentary: Heartening Test Results May Pump ICD Makers • Boston Scientific Comes Clean on Stent Risk.
Potentially impacted stocks and ETFs: Johnson & Johnson (NYSE:JNJ), Boston Scientific (NYSE:BSX), Abbott Laboratories (NYSE:ABT) • ETFs: iShares Dow Jones US Pharmaceutical Indx (NYSEARCA:IHE), iShares Dow Jones US Healthcare (NYSEARCA:IYH), Pharmaceutical HOLDRS (NYSEARCA:PPH)
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