Johnson & Johnson to take $500-$600 million charge as Cordis drops Cypher heart stents

US health care giant Johnson & Johnson (NYSE: JNJ), which has suffered a steady stream of bad news relating to product recalls, says that it expects to record an after-tax restructuring charge in the range of $500-$600 million in the second quarter of 2011 as a result of restructuring plans announced by its subsidiary, Cordis Corp. The restructuring charge will be treated as a special item.

In its separate news release, Cordis announced it will no longer pursue the development of the NEVO sirolimus-eluting coronary stent in order to focus on other cardiovascular therapies where significant patient need exists. The company will also stop the manufacture of Cypher and Cypher Select Plus sirolimus-eluting coronary stents by the end of 2011.

"Due to evolving market dynamics in the drug-eluting stent (DES) business, we see greater opportunities to benefit patients and grow our business in other areas of the cardiovascular device market," said Seth Fischer, company group chairman and worldwide chairman, Cordis Corp. "Cordis has been a leader in establishing many markets including diagnostic and guiding catheters, bare metal and drug-eluting stents, carotid stenting, and treatment of peripheral vascular disease and arrhythmias. These therapies have benefited millions of patients worldwide, saving lives and improving quality of life, and we will continue to bring innovative cardiovascular solutions to patients in the future," he added.