News
December 14, 2011
Abbott, BSX Fasce New Stent Rival Which Has attracted Ex-Celgene Chief, some Investors
In the global $6.1 billion coronary stent market, Abbott Laboratories (ABT) and Boston Scientific (BSX) are the kingpins in the U.S. Both of the two Big Pharma companies have continued to improve their technology to solve some issues that have had some unexpected problems with some stent patients.
Although vascular products, including coronary and carotid stents, account for only 10% of Abbott's estimated 2011 revenues of $38 billion, its dominance together with Boston Scientific is hard to crack. But there's a newcomer, tiny as it is, that might continue to push Abbott and Boston Scientific to work harder to make sure their leaderhip in the stent business remains secure.
Abbott's medical devices business is led by its world-leading stent brand XIENCE and XIENCE Prime stents. Its stents and other medical devices will help Abbott continue to deliver double-digit earnings growth, says Glenn Novarro, analyst at RBC Capital Markets, who rates Abbott's stock, now at $54 a share, as outperform with a year's target of $60.
At Boston Scientific, the FDA approved in mid-November its next generation drug-eluting stent PROMUS Element, which features a new platinum chromium alloy, a higher density material than cobalt chromium used in its earlier PROMUS stents. BSX plans to launch the new product soon, which is easier to put in place and has greater radial strength, says Novarro. He also rates BSX, now at $5.34 a share, as outperform. With the exiting of Johnson&Johnson (JNJ) the stent business after 20-year run, Novarro expects Abbott and BSX will each gain $100 million in stent sales in 2012, with Medtronic (MDT), another medical device maker, picking up $50 million.
The upstart outfit that has developed and marketed in Europe a new stent technology is InspireMD (NSPR), a small company that has produced MGuard, a new type of stent whose technology seeks to avoid problems that have bedeviled some of the existing products. So much so that MGuard has obtained in 2007 a European CE Mark, which is equivalent to an approval by the US. Food and Drug Administration. MGuard is now being marketed in 40 countries where some 18,000 have been sold.
MGuard has also attracted Sol Barer, the former chairman of Celgene, one of the most successful U.S. biophamaceutical companies, to join the tiny company's board. On Nov. 18, 2011, Barer agreed to become its chairman. At the same time, he bought one millons shares of InspireMD's stock at $1.50 a share.
During Barer's many years as chairman of Celgene, its stock became a high flier, rocketing from under $1 a share in 1998 to a high of $76 in 2008. It's now at $61. Celgene became a roaring success in developing and making drugs for the treatment of blood cancer and solid-tumor cancer, as well as inflammatory diseases. Instead of seeking reelection to Celgene's board, Barer opted to jump to InspireMD.
His move to InspireMD attracted some big investors, including Paul Stuka, managing partner at Osiri Partners, who bought $3 million worth of InspireMD's stock at $1.50 a share. A former portfolio manager at Fideltiy Management and before that portfolio manager at State Street Research and Management, Stuka has joined the board. Since Barer's switch to InspireMD, its stock has jumped, to $2.20 a share.
Sigma Medical is back again in Cardiology and Radiology!
Some years ago Sigma Medical was one of the largest distributors of Cardio Vascular devices in the Netherlands. After years of success the suppliers went direct or were being sold to another company.
Sigma Medical distribution lines in the past:
- Heart Technology (acquired by Boston Scientific)
- MicroVena (acquired by EV3)
- Perclose Inc. (acquired by Abbott)
- Biocompatibles (acquired by Abbott)
- Global Therapeutics (acquired by Cook)
- EVT (acquired by Guidant)
Because of successes in other medical fields like Cardio-vascular surgery, General surgery and Gynecology, the decision was made to stop for a while in the interventional field.
At this moment Sigma Medical is distributing lines for Vascular surgery (Maquet vascular grafts) and for Gynecology, Essure® Conceptus.
Sigma Medical wants to be a serious player again in Cardiology and Radiology. Job Huiskamp is within Sigma Medical the first person in this new Interventional Unit. He has a cardiology background and worked on a coronary cathlab. After this he worked for several years in the medical devices industry and he is well known among the BeNeLux interventional cardiologists and radiologists.
We like to introduce new interventional technologies and give support to the customers. Because we are a small company we can adapt very fast in changing situations.
If you have any questions or suggestions please contact us:
Sigma Medical
Job Huiskamp
T. +31 (0)55 - 368 44 55
F. +31 (0)55 - 368 44 66
M. +31 (0)6 - 46 13 18 00
E. job.huiskamp@sigma-medical.nl
I. www.sigma-medical.nl