J&J cutting back on stents, expects $500M charge
NEW YORK - June 15, 2011 (WPVI) -- Johnson & Johnson will cut back on manufacturing and development of heart stents, and will take a charge of $500 million to $600 million as it restructures its Cordis heart device business.
The New Brunswick, N.J., company says Cordis will stop making Cypher and Cypher Select drug-coated stents by year-end, and it will also stop development of a new drug-coated stent called Nevo. Cordis will focus on other areas of the heart device market where there is greater demand.
The company will eliminate up to 1,000 jobs as it shuts two manufacturing plants and consolidates a research and development team.
Stents are mesh-wire tubes that are used to hold arteries open after they are surgically cleared of fatty plaque. Sales have been hurt in recent years by safety concerns.
new york, new jersey, johnson & johnson, business/finance
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