Stent Firm Resolves A Concern; But Other Risks Remain; Tudor: Boston Scientific has underlying matters that it needs to address.(HEALTH & MEDICINE)(Q & A)

Byline: GLORIA LAU

Boston Scientific recalled 85,000 units of its drug-coated stent called Taxus DES last month. Since July 1, its shares plunged more than 21% to 33 before its strong second quarter earnings report on July 26 lifted shares. It closed at 38.26 on Friday. That's still down 16% for the month.

The news is significant because Taxus, launched on March 8, accounts for a third of total sales. In the second quarter, Taxus sales were $597 million, including $478.5 million in the U.S. and $86.9 million in Europe. This was out of companywide global sales of $1.46 billion.

Stents are tiny mesh cylinders that prop open blood vessels to reduce risk of reclogging. Johnson & Johnson launched the first drug-coated stent in the spring of 2003. Boston Scientific launch its own version seven months afterward.

Studies show drug-coated stents work better than bare-metal ones in reducing reclogging. Thus they reduce the chances of a second angioplasty procedure.

In Boston Scientific's case, however, the stents have run into some operating table glitches.

Stents are inserted into blood vessels via balloon catheters. In some cases, the Taxus balloon didn't deflate, forcing the angioplasty patient into emergency open-heart surgery to remove the balloon. In other cases, the balloon is sticky and difficult to remove.