Johnson & Johnson (J&J) said yesterday growth in its Cypher stent had pushed its sales up eight percentage points from the first quarter of last year to take 47 per cent of the US market, narrowing Boston Scientific's lead in drug-coated stents.
The medical device makers, which both have a significant presence in Ireland, are the main suppliers of the drug-coated stent - a tiny wire-mesh tube that is inserted into closing arteries and which emits a drug to keep the artery from scarring and closing again.
The companies also recently fought to take over Guidant, a US maker of heart devices. Boston bettered J&J's bid for Guidant with a higher offer worth about $27 billion (€22 billion).
Cypher's growth was the one bright spot for J&J as first-quarter earnings, excluding items, rose 5 per cent to $3 billion on only 1 per cent sales growth to $13 billion.
However, J&J said Cypher's US sales hit $366 million. Its worldwide market share was 51 per cent because of strong sales in Japan.
Boston's first-quarter sales also published yesterday were flat at $1.62 billion and earnings fell 7 per cent to $332 million. Its performance was hurt by its drug-coated stent Taxus, particularly in the US, where sales fell 15 per cent to $419 million.
Worldwide sales of Taxus fell 8 per cent to $633 million. Boston Scientific's Galway plant is one of the main manufacturers of the Taxus product.
The competition over stents underlines a prime motive for both companies' interest in Guidant. Most of Guidant's business comes from the high-growth business of inplantable defibrillators, heart devices that maintain proper rhythm for the heart.
The US market for drug-coated stents has matured and the products' success means that fewer patients have to go back for repeat procedures.
Robert Darretta, J&J's chief financial officer, said that worldwide market growth was settling to a percentage in "mid-single digits". US market penetration "was probably close to its peak", he said.
J&J was "being very aggressive at looking at good business-building acquisitions" of various sizes after pulling out of the Guidant battle. The company is seeking acquisitions to help boost growth which has moderated.
