Boston Scientific Corporation (NYSE:BSX) is feeling the heat after announcing that the launch of its upcoming heart valve replacement product known as Lotus Edge would be delayed.
Roughly $3 billion of the company’s value was wiped out following the announcement about the Lotus Edge delay which seems to have discouraged investors and thus the stock plummeted. Boston Scientific was scheduled to make an appearance at the annual Piper Jaffray healthcare investor conference but unfortunately it ended up cancelling without prior notice. Some of its investors were scheduled to engage in a Q&A session at the event on Tuesday morning.
The company’s decision to not show up is believed to be tied to the fact that the company has confirmed that the Lotus Edge heart valves would not make it into the European and U.S markets in the beginning of 2018 as had earlier been planned. Boston Scientific recalled the Lotus Edge units in February this year due to a defect involving the pin that connects the heart valve to the delivery system. During the recall, the firm revealed that the pins in the faulty heart valves would at times be released prematurely as a result of too much tension.
“While we are disappointed in this delay to our timelines, we are working to carefully analyze and implement necessary modifications to pass our rigorous internal quality standards,” stated Boston Scientific CEO, Mike Mahoney.
Mahoney did not disclose the reasons behind the delays though he did point out that the company is still optimistic and confident in the value to be generated by the Lotus Valve platform especially in treating patients who suffer from aortic stenosis. Following the recall, the company had announced that it planned to carry out a relaunch of the heart valve product in Europe within Q1 of 2018. It also revealed that it planned to file an application with the FDA in January next year. Boston Scientific is yet to reveal any guidelines as to when the actual launch will take place.
Boston Scientific stock closed the latest trading session on Wednesday at $25.95 after tanking by 1.67 percent from the previous close.