Friday, July 01, 2005

Can't We Just Get Along? (JNJ vs BSX)

Just when you thought that JNJ was about to knock out Boston Scientific (BSX), BSX comes right back with a body blow. Today after the bell, the jury found that JNJ infringed on BSX's patent on drug coating stents. No one was expecting BSX to win this one. If you have been following this fight, BSX lost two earlier rounds to JNJ and was gearing up to pay huge damages to JNJ. Analysts were looking at $1 billion in potential damages being awarded to JNJ. Now that's off the tables with today's verdict.

JNJ and BSX just need to get together and hammer out a deal so that both sides can claim victory. Investors hate uncertainty and there's plenty of it in BSX. I have positions in both JNJ and BSX. I'm cheering for both fighters!!

On a side note, I picked up some Novartis (NVS) for my IRA.


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