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Associated Press 12.05.07, 1:11 PM ET

NEW YORK -

Shares of medical device companies rose slightly in midday trading Wednesday, despite a negative outlook by Fitch Ratings focusing on persistent concerns over the safety of drug-eluted stents and implantable cardiac defibrillators.

An aging population coupled with advancing medical technology are expected to drive long-term growth for the sector, but the industry is facing near-term profitability issues, Fitch said.

Questions have lingered over the safety and effectiveness of drug-coated stents during the last year, as some research has shown they may lead to deadly blood clots. Stents are mesh-metal tubes used to prop open clogged arteries. They often use drug coatings to stop the blood vessels from reclosing.

Stent sales have suffered at several companies, including Johnson & Johnson, which in July announced plans to cut 4 percent of its work force, partly over weak stent sales. In October, Boston Scientific Corp. said it would cut 8 percent of its work force as part of a restructuring move.

Aside from stents, there have also been safety issues with several implantable cardiac defibrillators, which are used to monitor and regulate heart rhythms. In October, Medtronic Inc. had to recall leads, or wires connecting the device to the heart, over safety issues.

Both implantable cardiac defibrillators and drug-coated stents have relatively high margins and each account for 15 percent of the medical device market. Sales could start to rebound in 2008, barring any other setbacks, Fitch said.

Shares of Medtronic rose 28 cents to $50.82, while shares of St. Jude Medical Inc. rose 4 cents to $39.42 in midday trading. Meanwhile, shares of Johnson & Johnson rose 9 cents to $68.03 and Boston Scientific shares rose 26 cents, or 2.1 percent, to $12.89.