Johnson and Johnson Revenue Increased – Helped Along with “Stent War” Settlements
Posted Apr 20 2010 6:32pm
The stent wars relate to a just under 2 billion dollar settlement with Boston Scientific over the long on going patent wars. These “legally patented” stents are so expensive for hospitals to stock and have available, that many hospitals stock them on “consignment” in other words they are on the shelf and the hospital does not pay until it is implanted.
Legal battles of such somewhat guarantee that the cost of stent products will continue to be high. The average citizen just wants to know that there will be one available for their care if needed.
Boston Scientific on the other hand just had their largest investor named in an investigation from the SEC. I still believe that Johnson and Johnson should still consider tagging their expensive stents as recalls seem to be on the increase.
Boston Scientific already was ordered to pay short of 2 billion and yet we have another case that is going to be appealed. There’s one more story here about a judge denying J and J a bid to revive a 5.5 billion dollar anti competition breach of contract lawsuit with Boston Scientific. This is utterly ridiculous and the technology being disputed is highly technical. What don't’ the 2 merge or do something else that’s more intelligent than this, like reach an agreement without years of court cases. Is this the way of the future for financing research and development with stents? BD
New Brunswick, N.J.-based J&, part of the Dow Jones Industrial Average, said it earned $4.53 billion, or $1.62 a share, for the March quarter, compared with $3.51 billion, or $1.26 a share, during the same period in 2009.
Quarterly revenue rose 4% to $15.63 billion.
A poll of analysts by Thomson Reuters pegged J&J as generating earnings per share of $1.27, on revenue of $15.62 billion. In February, Boston Scientific said it had agreed to pay J&J $1.73 billion to settle three additional patent disputes over their respective cardiac stent products.