The first challenge to Johnson & Johnson’s coronary angioplasty business came from Guidant Corp.’s introduction of a stent with greater flexibility and an improved delivery balloon catheter. The results were stunning: Guidant captured a 70% market share within 45 days of launch and by the end of 1996, the J&J market share had dropped from 91% to 8%.
Market consolidation was moving at a rapid pace. Boston Scientific Corp. had bought SciMed Life Systems Inc. in...