New Boston Scientific Stent Approved In Europe

NATICK, Mass. (AP) — Medical device maker Boston Scientific said Monday it received European marketing approval for its latest drug-coated stent technology, which prevents blocked arteries.

The company said it will begin marketing its Promus Element stent in the European Union immediately. The device replaces the older Promus stent, which is Boston Scientific's version of Abbott Laboratories' Xience stent. Boston Scientific pays a 40 percent royalty to Abbott on all sales of the stents.

All revenue from the new stent will go directly to Boston Scientific.

"This is an important psychological and financial positive for the company and the stock," said Leerink Swann analyst Rick Wise, in a research note.

Stents are mesh metal tubes used to prop open arteries after the vessels have been cleared of fatty plaque. The drug coatings are designed to prevent scar tissue from growing back through the mesh and causing blockage.

Wells Fargo analyst Larry Biegelsen said the approval is "critical" for Boston Scientific, because the company's European supply agreement with Abbott expires later this month.