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Guidant’s shares are trading lower after it announced it was recalling a certain implanted defibrillator that resulted in two deaths.

The company announced June 17 that 50,000 of its implantable cardiac defibrillators in service could be subject to defects that have led to a total of 45 recordable failures. Two of the patients with defibrillators affected by the recall announcement have died, and the company has warned doctors worldwide about the possible defects.

Initially, Guidant seemed to indicate its cardiac defibrillators, which are off-warranty since they are more than five years old, weren’t going to be covered, but the company began telling doctors it would cover the cost in full to replace the models at risk of failing. Potential costs have been estimated as much as $225 million, with each unit costing about $25,000 to replace.

The announcement is expected to affect Johnson & Johnson’s acquisition efforts for Guidant. Because of the potential damage to the company’s reputation, as well as the damage to one of the main assets J&J was seeking from Guidant, there could be renegotiations in the future. J&J said it is still continuing to work toward a third quarter 2005 close of the acquisition of Guidant.

The company said 21,000 of the devices have been implanted worldwide, including 18,000 in the U.S.

Request more detailed Guidant recall information and submit your potential case for a free and confidential consultation by contacting our experienced product liability lawyers.