Abbott says Xience stent data tops rival

Medical device maker Abbott Laboratories said Tuesday its Xience V drug-coated stent outperformed its competitor Taxus, made by Boston Scientific Corp., in a study involving more than 1,000 people.

In the study, Xience V reduced the risk of major heart attacks by 45 percent compared with Taxus. Overall, Xience V showed greater reductions at two years than one year compared with Taxus. Abbott is still seeking Food and Drug Administration approval for Xience, while Taxus is already on the market.

Abbott sponsored the study and has already released positive one-year data on the stent. It is jockeying for position in a crowded stent market, with Taxus and Johnson & Johnson's Cypher dominating. Meanwhile, Medtronic Inc. sells the Endeavor stent.

Stents are tiny, wire-mesh tubes that prop open arteries after they have been surgically cleared of fatty plaque. Sales are still lagging over concerns which arose in 2006 that drug-coated stents carry a higher risk of blood clots, compared with bare-metal stents.

"We continue to believe that the data support our estimate for 30 percent Xience share in the U.S. in 2009," said Goldman Sachs analyst Lawrence Keusch, in a note to investors. "Importantly, the initial look at the data does not suggest any 'smoking guns' and should ease concerns about FDA approvability of the stent."

Xience is already approved in Europe. Boston Scientific and Abbott have a deal for shared rights on the technology behind Xience, with Boston Scientific's version called Promus, though it pays a share of Promus revenue to Abbott. The deal dates back to Boston Scientific's 2006 buyout of Guidant Corp.

Keusch expects FDA approval of Xience by the end of June. He reaffirmed a "Buy" rating.

Meanwhile Cowen and Co. analyst Sara Michelmore reaffirmed a "Outperform" rating, also saying the data should ease concerns over the stent's effectiveness and safety.

"Overall, we find the data very encouraging and believe it continues to support our bullish share assumptions," she said in a note to investors.

Shares of North Chicago, Ill.-based Abbott rose $1.62, or 3.1 percent, to $54.40. The stock has traded between $49.58 and $61.09 over the past 52 weeks. Meanwhile, shares of Natick, Mass.-based Boston Scientific fell 40 cents, or 3 percent, to $13.01. Shares have traded between $10.76 and $16.67 over the past 52 weeks.