Boston Scientific Recalling Unused Inventory of LOTUS Edge Aortic Valve System
November 17 2020 - 6:55AM
Dow Jones News
By Chris Wack
Boston Scientific Corp. said Tuesday it initiated a global
recall of all unused inventory of its LOTUS Edge Aortic Valve
System following issues with the product delivery system.
The medical technology company said the voluntary recall is
related solely to the delivery system, and there is no safety issue
for patients who currently have an implanted LOTUS Edge valve.
Boston Scientific said given the additional time and investment
required to develop and reintroduce an enhanced delivery system, it
would instead retire the entire LOTUS product platform immediately.
All related commercial, clinical, research and development, and
manufacturing activities will also cease.
The company said it would focus resources and efforts on its
ACURATE neo2 Aortic Valve System, Sentinel Cerebral Embolic
Protection System and other growth areas.
The move is decision is expected to result in pre-tax charges of
$225 million to $300 million due to inventory, fixed asset,
intangible asset and certain other exit charges. About $100 million
to $150 million of the charges will impact the company's adjusted
results, it said.
Most of the charges will be recorded during the fourth quarter
of 2020. The decision is expected to be accretive to earnings and
adjusted profit in 2021 by one to two cents and neutral
thereafter.
Boston Scientific shares fell 2% to $37.20 in premarket
trading.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
November 17, 2020 06:40 ET (11:40 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Boston Scientific (NYSE:BSX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Boston Scientific (NYSE:BSX)
Historical Stock Chart
From Sep 2023 to Sep 2024