Summary Box: J&J's exit from heart stents

AP News
Posted: Jun 15, 2011 3:09 PM
Summary Box: J&J's exit from heart stents

ABANDONING SHIP: Johnson & Johnson is bailing out of the drug-coated heart stent business it pioneered, after seeing sales of its Cypher stent fall steadily since 2006 as rivals rolled out better ones and manufacturing problems vexed development of a successor.

CORPORATE IMPACT: J&J will lay off up to 1,000 people, close two factories and take a charge of $500 million to $600 million in the current quarter.

REDIRECTING RESOURCES: J&J will focus its Cordis heart device business on areas where it likely can compete better, including stents for blood vessels outside the heart.