Its not just the Nighthawk diagnostic catheters -
2 of their new interventional wires( the Quest and
The Zigzag) - where recalled weeks after they where
introduced - Now maybe the NIR on
Sox - Market is
beginninig to wonder if they can produce anything on their
The Schneider acquisition does several other
things for BSX strategically;
-it improves the
competitiveness of BSX in Europe where the Schneider franchise
was most successful
-it secures the peripheral
market for BSX, where their Meditech Division has been
the dominant player and growth is a compound 15%. The
Schneider stent was mostly sold for peripheral
applications, not coronary.
-the Wallstent will be the first
approved for carotid applications, thereby giving BSX the
lead in this large projected market
Bonsel patents for rapid exchange and the license from
Cordis on Nylon balloons are both highly important for
competition with Guidant in the U.S.
The Schnieder acquisition will do a couple things
1) It gives them a solid pipeline of
patents for the future. Things such as delivery systems
for stents that will keep them ahead of the
2) It will give them excellent market presence in
the self expanding metal stent market. I believe
Schnieder did about $300 million in sales last year and
took a large chunk of Cordis's market share from the
Palmaz Stent (which is balloon expandable)
a good move, although expensive, that will position
BSX for the future.
For the last several years these people have had
the only decent
balloon technology on the market,
it's easy to sell when you had the only good balloon.
Now this cocky attitude has bit them in the butt.
Cath labs are angry at them because they load up the
labs with too many balloons at too high of a price.
Any good rep
should have learned from Cordis'
mistakes. They rushed the NIR
to market too fast to pay
for the Schneider deal and it may backfire.
All due respect but if you liked the company at
$70 why wouldn't you love it at $54? I bought
original shares in the mid 60's and last week I bought
more at $56. I think this is a tremendous buying
opportunity for an industry leader. Don't let the weekly
swings tell you when to buy and sell. Good companys'
with good products generally bounce back. There was a
reason the stock reached $80 and I'm sure it will be
back there in short order. Was is the downside on this
stock at $54/share? Good luck!