Boston Scientific

In a page one story, The Wall Street Journal reports that some leading cardiac centers are cutting back "drastically" on their use of drug-coated stents. Cardiologists at Cedars-Sinai, Brigham and Women's and other top centers are shifting back to the bare metal variety based on concerns about the long-term risks of blood clots associated with drug-eluting models. Although statistics show the use of the newer models has not changed much overall, observers suspect the news could …

In a key decision in the power struggle between two rival device makers, a federal judge upheld a patent protecting Boston Scientific's drug-eluting stent. According to The New York Times, the ruling appears to "level the playing field" in the battle between the company and Johnson & Johnson for dominance in the $6 billion stent market. The verdict is the latest twist in the patent war between the two companies. Last year a federal court ruled in favor of J&J, upholding a …

The New York Times reports that Guidant officials prepared a letter to doctors warning of serious quality control issues with some of its implanted devices long before the company admitted problems, but never sent it. Earlier this week, a Texas court made public a number of company documents, including the letter, which was dated January 2005. The development appears to suggest that liability for Guidant--and new owner Boston Scientific--over the recall of the Contak …

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With the pharmaceutical industry facing generic competition and biotechs running into the federal ban on stem cell research and other impediments, healthcare venture capital investment continues to flow into the medical device sector. Business 2.0 reports that 70 companies received $690 million in VC funding in the first quarter of this year, an increase of more than 60 percent over a year ago. The magazine talks with Mark Brooks of BA Venture Partners who notes that the relative …

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> McKesson released so-so numbers for the first quarter, with revenues up 12 percent but profits down 15 percent. But provider technologies are another story, with the unit reporting a revenue gain of 30 percent. Article

> Chutes & Ladders: Boston Scientific chief medical officer Mary Russell is resigning. Russell played a key role in the development of the company's Taxus …

The Guidant deal has transformed the market for cardiac defibrillators, yet the future is far from certain for the sector. New powerhouse Boston Scientific must cope with a cooling market for defibrillators in the wake of last year's recalls and the threat of Medicare reimbursement cuts. There is evidence that the problems at Medtronic and Guidant have led many doctors to hold off on recommending the potentially lifesaving technology for patients, or at least adopt a more conservative …

> Slow stent sales contributed to low first-quarter numbers for Boston Scientific. Article

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Medicare will pay for a potentially revolutionary test that will allow doctors to determine if patients will benefit from a defibrillator. Supporters say the non- invasive test, which measures heartbeat fluctuations, could lead to major changes in the market for cardiac rhythm management devices. Some analysts think the test could dampen the defibrillator market by eliminating people who don't really need the devices. Companies like Guidant, Boston Scientific and Medtronic, which have …