Monday, April 16, 2007

Boston Scientific Dumps One Boat Anchor

Finally, Boston Scientific received notice from the FDA that their manufacturing process can again begin releasing new products, removing a significant boat anchor to the stock's valuation. Patients should benefit, too, from new product releases and better quality assurance in the production process.
The removal of the sanctions allowed the FDA today to approve four software upgrades to existing implantable devices and authorize a new supplier for a manufacturing component, Boston Scientific spokesman Paul Donovan said in an interview.
But this slow-down was not without cost, as the device-maker has lost significant defibrillator and pacemaker product share to Medtronic and St. Jude Medical over the past twelve months.

Now the other 1,175 boat anchors in the form of lawsuits filed over Guidant's defibrillators remain.


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