After a series of positive news, medical technology major
Boston Scientific Corporation
) received a patent infringement complaint from
Vascular Solutions Inc.
), a provider of medical devices for coronary and peripheral
vascular procedures. Vascular Solutions has filed the complaint
in the U.S. District Court for the District of Minnesota.
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While Boston Scientific touched a 52-week high of $9.18 during
early trading hour, the stock was in the red for the rest of the
day, following the announcement from Vascular Solutions.
According to Vascular Solutions, Boston Scientific infringed
three patents owned by it. The complaint alleges, among other
things, that the production and sale of Guidezilla guide
extension catheter by Boston Scientific, which gained the 510(k)
clearance from the U.S. Food and Drug Administration (FDA) in Mar
2013, infringes the patent landscape of Vascular Solutions'
The Vascular Solutions GuideLiner catheter, launched in 2009, is
the foremost commercially available rapid exchange
mother-and-child guide extension catheter.
Vascular Solutions is pursuing an injunction against the med-tech
major to restrict the production and sale of its Guidezilla
catheter. Vascular Solutions is also seeking damages for lost
profits and legal costs.
Boston Scientific continues to face challenging economic
conditions, competitive environment, pressure on core segments
and currency headwind. Persistent softness in the core segments
is also a matter of concern. Given this backdrop, the injunction
is bound to act as another headwind.
However, Boston Scientific's constant efforts to revive its top
line and improve profitability are encouraging. Its restructuring
initiatives and efforts to strengthen its portfolio, suitable
acquisitions in areas of unmet medical needs and focus on
emerging markets should catalyze growth going forward.
The stock carries a Zacks Rank #3 (Hold). While we remain on the
sidelines for this med tech major, other stocks such as
Natus Medical Inc.
), carrying a Zacks Rank #1 (Strong Buy) are worth