After a series of positive news, medical technology major Boston Scientific Corporation (BSX - Free Report) 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.
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’ GuideLiner catheter.
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 Conceptus Inc. and Natus Medical Inc. (BABY - Free Report) , carrying a Zacks Rank #1 (Strong Buy) are worth considering.