Watch the bashers try to twist this one.
Probably the most minor recall I have seen since I have been investing in medical device stocks. No financial impact, no deaths, low number/volume of product to replace, and does not affect patients who have already received treatment with the recalled devices because the potential problem occurs only during the procedure.
This is and will be a non-event. Investors have to remember that the last quarter beat the street, they raised guidance, and Goldman just upgraded BSX. Next quarters earnings will beat again. I think BSX will beat big time. Elliott has an ego, if he is leaving, he will do it on an upswing....a continued upswing, confirmed by back to back quarterly blow out earnings. See you a $9 after the 2Q results are released.
Tip separation, in a coronary artery, isn't minor. It could trigger a quality audit. The tip is the one part that should have full scrutiny, and saying that a heat step caused it - that means processes are out of control.
But Dr. PrivateEye42 MD, PhD (Harvard) has assured us that the recall is minor and will have no impact on the upcoming takeover of BSX by JNJ, MDT, or Stryker. The good doctor has also assured us that talks are currently taking place for the BSX takeover and that Elliott has said BSX will sell for $15/share. So triple-mortgage the house, and pour all your money into BSX, because privateeye42 said so! Ha!
yes it seems very minor but that doesn't mean the market will react that way. bsx looks to be down 20 cents or more first 5 minutes of trading but i think it will rebound by mid day but will still be down 10 to 15 cents for the day...hope it can maintine $7 level by end of week....
The ONLY reason for this recall is the invasive nature of the procedure and that this is a patient safety issue....
AS I said before, 8 failures out of 29000 plus devices is well within the manufacturing QC norms and above all the cost of shipping and handling will far exceed the actual cost of the part in question....
FOR long term investors aside from improving P&L metrics, the big payday will be on the takeover potential.
Hey Private Eye, did you work for Ford when they decided not to recall the Pinto over the exploding gas tanks because it would cost too much money?
So you think BSX spending money to recall a product that could cause the following problems during a procedure is a waste of money? How much is a human life worth to you? This is cut and paste from BSX's own press release:
"Potential health risks associated with this type of failure include vessel wall injury, thrombotic events, retained foreign body, foreign body embolization, myocardial infarction and death"
How about a real reply instead of a stupid !!!!!! or ????? reply?