Medical device manufacturer Boston Scientific
Johnson & Johnson
In a 1,300-patient trial, the rate of reclogging with the Taxus stent was an industry-leading 7.9%, compared to Cypher's 8.9%. (J&J recently saw an even lower 5.1% reclogging in European studies, but comparisons are still drawn to its U.S. study.) Boston's need to retreat targeted lesions fell to 3%, compared to 11.3% with bare (or non-coated) stents.
The upshot: The Taxus trial appears more than healthy enough to win it U.S. regulatory approval -- and that sent Boston's stock soaring. Approval is anticipated in early 2004 and Taxus could quickly become a majority of Boston's annual revenue.
Canadian firm Angiotech
In related news, Boston Scientific raised third-quarter sales and earnings expectations this morning due largely to strong sales of Taxus overseas. Sales guidance increased by about 5%, from roughly $825 million to the new range of $855 million to $865 million. Third-quarter earnings per share should ring in at $0.28 to $0.30 (excluding one-time items), up from an earlier estimate of $0.24 to $0.28.
For 2003, analysts expect earnings per share of $1.15, before rocketing to $2.84 per share in 2004. The $66 stock trades at 57 times this year's estimate and 23 times next year's still-speculative estimate.
Competitors Medtronic
Jeff Fischer owns shares of J&J.