I just reviewed a Reuters interview with Guidant's CEO, Ron Dollens, regarding stents market share in the U.S. and it is amazing! The following is extracted from the interview.
GDT's stent has been sold in Europe since 1995 and in Japan since June 1997. GDT received FDA approval on October 3. At that time, JNJ held 95% of the roughly $1-billion U.S. market for stents. Since that time, GDT's has acquired in excess of 50% of the U.S. market share. Dollens says that even they have been surprised with how rapidly the switching from JNJ to GDT has occured. He also added that prices have not declined in the U.S. but that prices continue to decline in Europe.
What was not mentioned in the interview is that MDT claims to have gained 15% market share during this same time period and Cook has about 5%. That leaves Cordis with 30% market share in the U.S.? Unbelievable! This also does not take into connsideration the impact on Cordis' PTCA balloons when GDT is able to mount its stent on a monorail.
Hellooo, down in Miami!!! Is anybody awake? With the marginal cost of a stent being less than 5%, the loss in Cordis' profit contribution must be well beyond 70%.
Can anyone shed any light on this? Does Cordis have a second generation stent and a monorail in the background? If not, are they at risk of losing the entire PTCA balloon and stent franchise? Remind me again, what did JNJ pay for Cordis?