BOSTON SCIENTIFIC, ANGIOTECH'S VALUE DROPS

Boston Scientific and Angiotech Pharmaceuticals' value is dropping as the drug-coated stent field becomes less exclusive, Merrill Lynch says. The investment firm has downgraded both companies from "Neutral" to "Buy" because Johnson & Johnson is beginning to take a larger share of the drug-eluting stent (DES) market. According to Merrill Lynch analyst Katherine Martinelli, Boston Scientific's share of the DES market is likely to drop from 58 percent down to 35 percent in 2009.

Boston Scientific produces the stents and Angiotech is the company's exclusive supplier of the stent coating paclitaxel. Martinelli lowered her earnings per share estimates for Boston Scientific to $1.95 from $2.07 in 2006, to $2.17 from $2.35 in 2007, and to $2.37 from $2.60 in 2008. Hari Sambasivam, a Merrill Lynch analyst, lowered the 2006 earnings for Angiotech to 92 cents per share from $1.14.