November 29, 2017

Boston Scientific lost $3.5B in value in two days

Courtesy Boston Scientific
Boston Scientific's global headquarters are located in Marlborough.

The price of Marlborough medical device maker Boston Scientific's stock has fallen nearly 9 percent since the close of market trading on Monday, fueled by an announced delay to its Lotus Edge Aortic Valve System in the U.S. and Europe.

When the market closed on Monday, Boston Scientific's stock was trading at $28.51 per share, and by market close on Wednesday, it had fallen to $25.95 per share. Based on the company's 1.37 billion shares of outstanding stock, Boston Scientific's value dropped $3.5 billion in those two days.

On Thursday at noon, the stock price was $26.05 after opening the day at $26.24.

The company voluntarily recalled the Lotus and Lotus Edge Aortic Valve systems earlier this year and implemented manufacturing and design changes with the aim to reintroduce the projects in early 2018.

"While we are disappointed in this delay to our timelines, we are working to carefully analyze and implement necessary modifications to pass our rigorous internal quality standards," CEO Mike Mahoney said in a statement.

Now, the company is expected to update shareholders on the status of the device during a fourth quarter conference call on Feb. 1.

The announcement, the company said, is not expected to have a material financial impact.

Prior to the announcement, shares had increased from $21.88 in January to $28.51 at Monday's close.

Last month, the company said in its third quarter report sales had grown by 5.6 percent to $2.2 billion.


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