Guidant Corp. said Tuesday it struck a deal with Johnson & Johnson to co-market J&J's drug-coated stent, a new device used to keep arteries clear after surgery.
The decision to join forces comes as Boston Scientific Corp. expects to get U.S. Food and Drug Administration approval any day for its own drug-coated stent, which analysts believe could overtake J&J's Cypher stent.
Guidant reiterated its expected ranges for first-quarter and full-year sales and earnings and said its own drug-coated stent is still on track for a 2006 U.S. launch.
But the company also said the deal would add 4 cents to 6 cents per share to 2004 profit, which is still expected at $2.33 to $2.48.
The deal also sets aside a hurdle to Guidant's effort to reach the market because it settles all outstanding patent disputes between the companies over stents.
In its own statement, J&J's Cordis unit noted that the agreement would give it access to Guidant's "bioabsorbable" technology, which could prove to be an improvement to drug-coated stents down the line. The technology is designed to ensure that the drugs coated on the stent do not remain in the body, which could produce harmful results.
But Boston Scientific's top cardiovascular executive Paul LaViolette said at an annual analyst meeting on Monday that testing degradable drugs could add an element of risk.
