NEW YORK (AP) -- Shares of Boston Scientific Corp. gained traction Tuesday against stent rival Abbott Laboratories, after study data showed its Taxus drug-coated stents were effective in reducing the need for further heart procedures, compared with bare metal stents.

In turn, Abbott reported data showing its Xience V stent reduced heart problems compared with Taxus, but the results were not statistically significant. Xience V is not yet approved by the Food and Drug Administration.

The study results were reported at the American College of Cardiology conference in Chicago on Monday. Natick, Mass.-based Boston Scientific and North Chicago, Ill.-based Abbott are among several other medical device companies that have seen sales of drug-coated stents fall since safety concerns over blood clots were raised two years ago. Since then, the companies have been further studying the devices' safety and effectiveness.

Stents are tiny, mesh-wire tubes that prop open arteries after they have been surgically cleared of fatty plaque. Drug coatings are used to prevent scar tissue from growing over the mesh wire, but data suggested two years ago that drug coatings may put patients at higher risk of blood clots.

Boston Scientific reported results from a study involving 2,458 patients, which showed participants with drug-coated stents had lower revascularization rates, which include heart bypass procedures. The company's stock rose 47 cents, or 3.7 percent to $13.34 in midday trading.

Abbott said patients using its stent had a lower rate of heart attack and death compared with Boston Scientific's product, though the results were not statistically significant.

Abbott shares fell 33 cents to $54.82.

Still, Wachovia Capital Markets Larry Biegelsen expects Abbott's stent to eventually lead the market. He said the company will likely focus its promotional efforts on the complete body of clinical evidence surrounding Xience.

He said Medtronic Inc.'s stent Endeavor was also viewed with some skepticism following several blood clot cases, but attention has since shifted to the overall safety of the stent.

Shares of Minneapolis-based Medtronic Inc. rose 31 cents to $48.68. Shares of Johnson & Johnson, which makes the Cypher stent, added 58 cents at $65.45.

Also at the conference, Palo Alto, Calif.-based CV Therapeutics Inc. presented study data on its chronic angina drug Ranexa as it moves to expand the drug's label. Its stock rose 29 cents, or 4 percent, to $7.42. Whitehouse Station, N.J.-based Merck & Co. gained 40 cents at $38.35 after its Monday plunge on negative news about cholesterol drug Vytorin and several other drugs.

*** Previously i mentioned it is a matter of time before Endeavor DES start to show blood-clot problems. I feel their durable polymer is of better grade than Cypher, Taxus and Xience, however durable polymer is still a durable polymer afterall. This is blood-clot problem is a huge slap in Medtronic's face. They know Endeavor has below average short-term performance compared to first generation DES (due to lower potency zotarolimus drug). They claimed Medtronic is the safest DES with zero blood clot problems, then formulate their global marketing plan around this one and only winning point. Now with blood-clot problems cropping up, they shift the attention to being having "the best overall safety DES". When more blood-clot problems start cropping up, i think they can seriously consider thrashing away this piece of junk.

Medtronic is a serious contender in buying over BIG. Medtronic controls 15% of Shandong Weigao group and this group and their affiliates have control of BIG's 25% market capital (being total new shares/options issued for 100% China JWMS acquisition). Medtronic/Weigao would not have exchanged their JWMS crown jewel for shares of loss-making BIG unless they see something of much greater value in BIG. I think Medtronic start to realise biodegredable polymer is the future of DES and Medtronic has zero such experience in this field while BIG is a pioneer and leader in the area of biodegredable polymer and BIG is holding the key "limus drug on biodegredable polymer" patent. I will not be surprised if MDT showed hand first before JNJ make the first move. Such takeover deals may involve "break-up fee" so the first mover enjoys an advantage and the next offerer after the first offer has been announced and conditionally accepted by key shareholders has to offer a much higher premium than the first offer. MDT having an indirect inflence of 25% of BIG's shares is already the "King-maker" in BIG's takeover situation.    

NEW YORK (AP) -- Wall Street headed for a rally at Tuesday's opening as investors warmed to new recapitalization plans at UBS AG and Lehman Brothers Holdings Inc.

UBS said Tuesday it will take a fresh $19 billion writedown due to additional declines in the value of its mortgage assets and other credit instruments, following an $18 billion writedown last year. But investors focused instead on UBS' accompanying announcement that it will issue up to $15 billion in new stock and that Chairman Marcel Ospel had quit. The new stock sale and executive change were seen as signs the bank was moving forward despite being the most serious European victim of the U.S. subprime mortgage problems.

In addition, Lehman Brothers said it would sell 3 million convertible preferred shares due to "investor interest."

That news buttressed the view that financial services companies are taking aggressive action to improve their capital bases and should add to early positive momentum Tuesday as the second quarter gets under way. In addition, the dollar was able to take back some strength against the euro in early trade.

The futures contract for the Dow Jones industrial average rose 80 points, or 06 percent, to 12,337. Futures contracts for the Standard & Poor's 500 shot up 9.60 points, or 0.6 percent, to 1,333.60 and the Nasdaq 100 advanced 14.2 points, or 0.7 percent, to 1,804.