Boston Scientific Defibrillators
Boston Scientific (NYSE:BSX) shares got hammered today as investors abandoned the stock as it fell by over 12 percent, closing at $6.80, the worst closing for the stock in over a year.
The stock was downgraded by Summer Street from the news that caused the fallout from the recall of its implantable heart defibrillators, which had a lot of negative buzz surrounding the situation, but not a lot of clear information as to why.
According to Boston Scientific, the reason was because it had failed to contact the FDA concerning a couple of recent design changes in the devices. The company also pulled all its defibrillators out of hospitals, evidently to protect themselves.
Whether this is an actual concern over the performance of the device, or a paperwork error, it will have a strong impact on the company results for 2010, and there will be a lot of reputation to repair either way.
The company said no patients were at risk to the implanted defibrillators, seeming to imply it's largely a paperwork issue, and if that's the case, what a costly one, as the device generated sales of $1.5 billion for the company in 2009.
Boston Scientific
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