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Biotech / Medical : Boston Scientific (BSX) Any Comments??? -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (472)	9/15/1998 6:25:00 PM
From: John Carragher	Read Replies (1) \| Respond to of 798

Dow Jones Newswires -- September 15, 1998 Boston Scientific Dn 5% On Rumors Of Nir Stent Recall Dow Jones Newswires By Louis Hau NEW YORK (Dow Jones)--Boston Scientific Corp.'s (BSX) shares sank 5.1% after rumors circulated that the company was considering a recall of its Nir coronary stent. But an official at the Natick, Mass., medical-device company described the rumors as erroneous, saying they stemmed from exaggerated concerns about a problem affecting only a small number of stents. Stents are tiny metal scaffolds used to prop open an artery after a balloon angioplasty. After a lengthy delay in obtaining regulatory approval from the Food and Drug Administration, Boston Scientific finally commenced its U.S. launch of the Nir stent in mid-August. The company soon found that a small number of stents were causing pinhole perforations in the angioplasty balloons being used to push the stents in place, said Chief Financial Officer Larry Best. This prevented the balloons from reaching maximum pressure but the stents were usually deployed properly by the time problem was discovered, Best told Dow Jones. Best said the perforations occurred in less than 1% of Nir stents mounted with the company's so-called Sox system, a sheath that covers the stent to secure the device more firmly to an angioplasty balloon. Because the problem has arisen in only a small number of cases, Boston Scientific doesn't believe that a recall is necessary, Best said. The company would consider a recall if the problem posed a threat to patient safety but "right now, we're not even close to that," Best said. He said that the U.S. rollout of the Nir has been meeting the company's expectations and that the Nir/Sox glitch will have no impact on third-quarter earnings. The First Call consensus projects third-quarter net income of 51 cents a share, compared with 44 cents in the year-ago period. "The rumor that we are considering significant modification of our rollout of the Nir stent is false," Best said. U.S. stent sales have enjoyed very strong growth during the past year, propelled by new-generation devices such as Guidant Corp.'s (GDT) Multi-Link and Arterial Vascular Engineering Inc.'s (AVEI) GFX and Micro Stent II products. Boston Scientific's Nir is a relative late-comer but analysts nonetheless expect the Nir to grab significant market share. Boston Scientific's NYSE-listed shares fell 3 1/2, or 5.1%, to 64 7/8 on volume of 1.5 million. Average volume is 789,400. -Louis Hau 201-938-5240; louis.hau@cor.dowjones.com Briefing Book for: BSX Return to top of page \| Format for printing Copyright c 1998 Dow Jones & Company, Inc. All Rights Reserved.