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Boston Scientific announces recall, shares drop
Boston Scientific said it will recall one of its pacemaker models after an FDA report released last week suggested many of the units will eventually malfunction. The device maker's shares fell seven percent on the news Monday and are down midday Tuesday. CEO Jim Tobin said in a conference call that it may take 18 months to two years to correct problems with the pacemakers and defibrillator lines the company acquired in the Guidant deal this year. He also hinted the recall may not be the last.
Boston Scientific has also been hurt by a report published in The Wall Street Journal last week that suggested leading cardiac centers are moving away from using its drug eluting stents. Not everybody agrees with the interpretation, but the report has raised another potential concern for investors.
- read this article from the Houston Chronicle
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