[Competing with such entrenched products as JNJ’s Cypher and BSX’s Taxus, Xiensce is rapidly gaining share because it is simply better. Please see #msg-30452522 for notes on the distinction between Xience and Promus.]
Abbott Laboratories' Xience drug-coated stent is exceeding the company's expectations following its introduction in the U.S. in early July, Abbott's chief financial officer said.
"We are rapidly gaining market share," said Thomas C. Freyman during a Bank of America conference. Abbott's products compete against devices made by Boston Scientific Corp., Medtronic Inc. and Johnson & Johnson.
"We expect to be the market-share leader by the end of the year, if not sooner," Mr. Freyman said, referring to the Xience platform, which includes a Boston Scientific-branded version of the stent.
Xience became the fourth-coated stent to hit the U.S. market when the Food and Drug Administration approved the device this summer.
Xience arrived with high expectations after clinical-trial data showed it topped the market-leading Taxus stent, from Boston Scientific, on certain measures of performance. Boston Scientific also sells Xience under the name Promus and then sends 40% of Promus profit back to Abbott.[This odd arrangement is a consequence of the divestiture of Guidant’s stent business as a condition of BSX’s acquisition of Guidant two years ago.]
Abbott, of Abbott Park, Ill., had projected upon Xience's U.S. introduction that Xience alone -- excluding Promus -- would comprise 25% to 30% of the U.S. market after 12 months. Some Wall Street analyst reports tracking Xience's progress have suggested, however, that Xience's uptake is outpacing forecasts.
Mr. Freyman didn't issue a new target, but said Xience "is exceeding our expectations" in the U.S.
The market split between Xience and Promus has been about 60% Xience and 40% Promus, said Mr. Freyman, who said Boston Scientific has been marketing its version aggressively. There is room for Abbott's position to improve, he said.
"We're very comfortable with the combined platform with Xience and Promus gaining so much share so quickly in this market," Mr. Freyman said.
Xience also has taken the market-share lead in Western Europe, where it went on sale about two years ago, Mr. Freyman said. The European market features more products, and also newer versions of some of the stents on sale in the U.S.‹
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.