Shares of Boston Scientific Corp. (BSX) are tumbling more than 8 percent or $3.10 in Tuesday’s morning trade at $34.93.
Tuesday, Boston Scientific said it has initiated a global, voluntary recall of all unused inventory of the LOTUS Edge Aortic Valve System due to complexities associated with the product delivery system. The company noted that there is no safety issue for patients who currently have an implanted Lotus Edge valve.
Further, Boston Scientific said that due to the additional time and investment required to develop and reintroduce an enhanced delivery system, it has decided to retire the entire LOTUS product platform immediately. The company will cease all related commercial, clinical, research & development and manufacturing activities.
The company estimates the recall and the discontinuation of the production would result in total pre-tax charges of about $225 million to $300 million, with the vast majority of these charges to be recorded in the fourth quarter.
Boston Scientific has traded in a range of $24.10 to $46.62 in the past 52 weeks.
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