Suspension Of ICDs And CRT-Ds Shipment Could Erode BSX’s Market Share

Analysts at Morgan Joseph maintain their "hold" rating on Boston Scientific Corporation (NYSE: BSX).

According to Morgan Joseph, “Boston Scientific announced that it had stopped shipment and is retrieving field inventory for all of its implantable cardioverter defibrillators (ICDs) and cardiac resynchronization therapy defibrillators (CRT-Ds).”

“ICDs and CRT-Ds represent approximately 22% of BSC revenue, a significant part of the business. We estimate Q1 2010 ICD revenue of $432 million, which translates into approximately $145 million per month in lost revenue or ($0.02) in EPS per month. The total EPS impact for 2010 could vary depending on how long it takes to resolve the issues… We think that the product quality concerns could erode market share as competitors take advantage of the situation. We would remain on the sidelines until after Q1 results are reported,” the analysts add.

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