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Boston Scientific expects continued stent recovery

Jun 16, 2008 | Associated Press | CNN News

Boston Scientific Corp. expects the drug-coated stent market to continue recovering, as it works to place its line of Taxus products at the front of a crowded, competitive field.

Sales of drug-coated stents declined sharply over the last few years as research questioned the devices' safety and effectiveness compared with older, bare-metal versions. The devices are used to open and unclog blocked arteries, and drug-coatings are used to prevent the growth of scar tissue.

More recent studies have shown the stents are both safe and effective _ driving a slow sales recovery, according to several medical device executives.

"The market hasn't gone away," said Boston Scientific Chief Executive Jim Tobin, speaking to investors at Goldman Sachs' annual health care conference Wednesday. "This is a market that is going to be robust in terms of patient flow for a long time."

He did acknowledge the $4.5 billion market is not what it used to be, though, and may never rise to its $6 billion pre-safety issue levels. But while market penetration may never regain its 88 percent level, it's not going to stay at 60 percent, he said.

The company's first-quarter results showed drug-coated stent sales remain depressed, falling 9 percent to $428 million. Boston Scientific fared better with implanted defibrillator sales, which rose 3 percent to $411 million.

Boston Scientific is among a group of companies trying to rebuild the drug-coated stent market and their piece of the sales pie.

Rival Medtronic Inc., based in Minneapolis, is making a push with its Endeavor drug-coated stent, which got off to a strong launch with $81 million in sales during the company's fiscal fourth quarter. North Chicago, Ill.-based Abbott Laboratories is looking to its Xience stent, which is awaiting Food and Drug Administration approval, as a key revenue driver in the market. And, New Brunswick, N.J.-based Johnson & Johnson has been investing in its Cypher stent.

Meanwhile, Natick, Mass.-based Boston Scientific continues to expect strong growth in the implantable cardiac device market, which together with stents accounts for about half of the company's sales.