Devices & Diagnostics

Medical device giant St. Jude Medical closes with strong fourth quarter

The Minnesota make of new innovative medical devices saw its fourth-quarter profits increase 8.9 percent compared to the previous year’s fourth quarter. St. Jude said it expects adjusted, consolidated Q1 net earnings in the range of 77 cents to 79 cents per; full-year adjusted, consolidated EPS are forecast to be between $3.25 and $3.30

St. Jude Medical Inc. (NYSE:STJ) wrapped up 2010 and put a bow on it with near-double-digit boosts to its top and bottom lines.

The St. Paul, Minn.-based medical device maker’s fourth-quarter profits rose 8.9 percent to $206.4 million, or 62 cents per diluted share, on sales of $1.35 billion during the three months ended Jan. 1. That compared with profits of $189.7 million, or 57 cents per diluted share, on sales of $1.20 billion during Q4 2009.

The numbers improve further once charges related to recent acquisitions are taken into account. Adjusted for acquisition costs from the buyouts of LightLab Imaging Inc. and AGA Medical, the settlement of a U.S. Justice Dept. probe, a charge on extra implantable cardiac defibrillator inventory and a tax benefit from a federal R&D credit, Q4 net income was $251.1 million, or 75 cents per adjusted, diluted share — up more than 17 percent over Q3 2009.

Chairman, president and CEO Daniel Stark said the company posted the strong results despite “difficult macro-economic challenges.”

Here’s a breakdown of how each STJ segment fared during the fourth quarter and 2010, compared with the same period in 2009:

Q4 % increase 2010 % increase
Cardiac Rhythm Management
ICDs $458 million 16% $1.82 billion 15%
Pacemakers $304 million flat $708 million 13%
TOTAL $762 million 9% $3.04 billion 10%
Cardiovascular
Vascular closure $92 million -2% $375 million -2%
Heart valves $87 million 10% $337 million 4%
TOTAL $287 million* 20% $1.04 billion 9%
Atrial Fibrillation $193 million 13% $708 million 13%
Neuromodulation $108 million 15% $380 million 15%
*Includes a $25 million assist from AGA Medical.

St. Jude said it expects adjusted, consolidated Q1 net earnings in the range of 77 cents to 79 cents per; full-year adjusted, consolidated EPS are forecast to be between $3.25 and $3.30.

STJ shares were down 2 percent to $41.76 in mid-morning activity.

The Massachusetts Medical Devices Journal is the online journal of the medical devices industry in the Commonwealth and New England, providing day-to-day coverage of the devices that save lives, the people behind them, and the burgeoning trends and developments within the industry.

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