(Updated with final closing prices)
Shares of companies that make heart devices mostly traded higher Tuesday, after Boston Scientific (BSX) reported successful trial results for one of its products, which analysts said could lead to better sales of other items.
Boston Scientific said its device designed to re-coordinate the pumping of the right and left ventricles, called a cardiac resynchronization therapy defibrillator, reduced death and the need for hospitalization in heart failure patients. Boston Scientific said its device was more effective than traditional implantable cardioverter defibrillators.
The devices deliver electric shocks to the heart to restore a normal rhythm. Use of implantable heart devices has slumped in recent years because of product recalls and safety concerns."There is no question that the penetration of CRT-D devices will increase," said Jefferies analyst Peter Bye, because the trial data could lead to expanded health insurance and Medicare coverage for implants. However, he said, it's not clear how many more patients will be considered good candidates for the implants. Boston Scientific shares rose 27 cents, or 2.9%, to close at $9.51. Shares of St. Jude Medical (STJ), a company Bye singled out as a beneficiary of improved sales, added $1.01, or 2.6%, to $40.55. Elsewhere, shares of Abbott Laboratories (ABT) gained 15 cents to $46.86 and Medtronic's (MDT) stock gained 18 cents, to $33.37. Shares of Johnson & Johnson (JNJ) slipped 48 cents to $55.01.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV