Devices & Diagnostics, MedCity Influencers

Boston Scientific could get two-thirds of Cordis’ market share

Boston Scientific Corp. (NYSE:BSX) could be positioned to gobble up some two-thirds of the business […]

Boston Scientific Corp. (NYSE:BSX) could be positioned to gobble up some two-thirds of the business left on the table by Cordis Corp. in the U.S., according to research released by the Millennium Research Group.

The market research company said that Johnson & Johnson (NYSE:JNJ) subsidiary Cordis was already seeing serious erosion in its market share for a number of years and was facing even more competition when it decided to pull out of the stent game game altogether.

“Cordis has seen its market share erode over the last number of years,” Millennium analyst Karene Dumoulin said in a prepared release. “Between 2009 and 2010 Cypher’s contribution to Cordis’ worldwide revenues dropped from 34 percent to 24 percent, and would likely have fallen below 20 percent in 2012. New stents are expected in all geographies in the next year. This is an extremely active and competitive market. Physicians look for clinical results and show little product loyalty. You’re only as good as your last product.”

Boston Scientific is the most likely to pick up the slack from Cordis in the U.S., according to Millennium to the tune of about two-thirds of the market, while Abbott (NYSE:ABT) and Medtronic (NYSE:MDT) fight each other for the rest.

Millennium said the Japanese-based Terumo Medical Corp. will take two-thirds of Cordis share in the land of the Rising Sun, while the remainder will be divided between Abbott and Boston Scientific.

BSX CEO J. Raymond Elliott recently called the Cordis decision “an upside for 2012” for the Natick, Mass.-based stent maker.

“If you look at the size of the markets, the Cordis portion is probably about $400 million or so,” he said. “However, the part people are missing is that there’s another $400 million market in guides, bare metal, diagnostics and so on. It’s tougher to get at but it’s there. It’s a rare gift… You don’t get opportunities like that very often, so we’re doing what we need to do to get that business.”


MassDevice Staff

The Massachusetts Medical Devices Journal is the online journal of the medical devices industry in the Commonwealth and New England, providing day-to-day coverage of the devices that save lives, the people behind them, and the burgeoning trends and developments within the industry.

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