Biotech Values

[DewDiligence]

JNJ pulls out of drug-eluting-stent business:

http://finance.yahoo.com/news/Cordis-Announces-prnews-2754018749.html?x=0&.v=1

Cordis Corporation, a worldwide leader in the development and manufacture of interventional vascular technology, today announced it will no longer pursue the development of the NEVO Sirolimus-Eluting Coronary Stent in order to focus on other cardiovascular therapies where significant patient need exists. The company will also stop the manufacture of CYPHER and CYPHER SELECT Plus Sirolimus-Eluting Coronary Stents by the end of 2011.

Cypher was the first drug-eluting stent on the market, but ABT’s Xience has rendered Cypher an afterthought in the marketplace.

Nevo, based on technology JNJ acquired in the $1.3B buyout of Conor Medsystems in 2006 (#msg-14870799), made a big splash in 2009 (#msg-37962147). Nevo’s claim to fame was its Swiss-cheese like drug reservoirs in lieu of a drug coating used in other DES products.

In a separate PR today, JNJ said it was taking a $500-600M charge against earnings in the current quarter for “restructuring” of the Cordis division.