Barclays on Medical Supplies & Devices: Weekly Insights & Observations: November 28, 2011
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Rating Summary:
25 Buy, 18 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on Medical Supplies & Devices: Weekly Insights & Observations: November 28, 2011
Barclays analyst, Adam Feinstein, said, "Our conclusion is that while Riata silicone leads in the field will likely have higher rates of abrasion than product performance reports and the MAUDE database (95% of MAUDE reports are from product performance reports), they will: 1) likely have lower rates than those in the Ireland and Germany studies due partially to the choice of leads (single versus dual coil); 2) likely be comparable to other silicone leads; and 3) largely be able to continue delivering therapy. Further, we see a number of differences between this issue and Medtronic's (NYSE: MDT) 2007 recall of Fidelis that should limit downside for St. Jude (NYSE: STJ).'
"Barclays Capital Medical Supplies & Devices thoughts on earlier than expected FDA approval of Boston Scientific's (NYSE: BSX) Promus Element. On 11/22, after the close, BSX announced FDA approval for its Promus Element DES. The approval comes sooner than our 2Q12 expectation. BSX expects the approval to represent ~$200 million in additional annualized gross margin contribution for the US and Japan exiting 2012, which is part of the $650-$750 million opportunity for operating profit improvement that BSX expects over the next several years. We view the news as a positive for BSX and expect the shares to outperform today. However, we continue to view BSX as a turnaround story and would wait for more stable sales trends, execution on restructuring and cost-reduction plans before getting more constructive."
"SEC Filing Monitor. We highlight a 10-K filing at COV, 8-K filings at MDT (F2Q results), BSX (FDA approval of Promus Element), and Covidien (NYSE: COV) (director appointment). We also note insider transactions at BSX, Edward Lifesciences (NYSE: EW), and Stryker (NYSE: SYK)."
Barclays analyst, Adam Feinstein, said, "Our conclusion is that while Riata silicone leads in the field will likely have higher rates of abrasion than product performance reports and the MAUDE database (95% of MAUDE reports are from product performance reports), they will: 1) likely have lower rates than those in the Ireland and Germany studies due partially to the choice of leads (single versus dual coil); 2) likely be comparable to other silicone leads; and 3) largely be able to continue delivering therapy. Further, we see a number of differences between this issue and Medtronic's (NYSE: MDT) 2007 recall of Fidelis that should limit downside for St. Jude (NYSE: STJ).'
"Barclays Capital Medical Supplies & Devices thoughts on earlier than expected FDA approval of Boston Scientific's (NYSE: BSX) Promus Element. On 11/22, after the close, BSX announced FDA approval for its Promus Element DES. The approval comes sooner than our 2Q12 expectation. BSX expects the approval to represent ~$200 million in additional annualized gross margin contribution for the US and Japan exiting 2012, which is part of the $650-$750 million opportunity for operating profit improvement that BSX expects over the next several years. We view the news as a positive for BSX and expect the shares to outperform today. However, we continue to view BSX as a turnaround story and would wait for more stable sales trends, execution on restructuring and cost-reduction plans before getting more constructive."
"SEC Filing Monitor. We highlight a 10-K filing at COV, 8-K filings at MDT (F2Q results), BSX (FDA approval of Promus Element), and Covidien (NYSE: COV) (director appointment). We also note insider transactions at BSX, Edward Lifesciences (NYSE: EW), and Stryker (NYSE: SYK)."
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