St. Jude Medical
|Traded as||NYSE: STJ
S&P 500 Component
|Headquarters||Little Canada, Minnesota|
|Key people||Daniel J. Starks, Chairman and CEO
John C. Heinmiller, Executive Vice President & Chief Financial Officer
|Net income||USD 384.33 million (2008)|
St. Jude Medical, Inc. is a $16 billion (market cap) global medical device company, with headquarters in Little Canada, Minnesota, United States, a suburb of St. Paul.The company's first major accomplishment was the acquisition of the Pacesetter in 1994. Now, the company sells products in more than 100 countries and has over 20 operations and manufacturing facilities worldwide. It has four main technology platforms that are atrial fibrillation, cardiac rhythm management, cardiovascular and neuromodulation. Its principal competitors are Medtronic and Boston Scientific.
St. Jude Medical develops and manufactures the following types of products:
- Cardiac resynchronization therapy devices for heart failure
- Artificial pacemakers and implantable cardioverter defibrillators (ICDs) for treating cardiac rhythm disorders
- Diagnostic and therapeutic electrophysiology catheters
- Introducers, catheters, and vascular closure devices for cardiology and vascular access
- Mechanical and tissue heart valves plus valve repair products
- Spinal cord stimulators for intractable pain (under subsidiary "Advanced Neuromodulation System" based in Plano, Texas)
Heart lead recall
On Nov. 28, 2011 St. Jude Medical recalled Riata and Riata ST leads due to device failure. The recall occurred because erosion of the insulation around the electrical conductor wires that connect the heart to the implantable cardioverter defibrillator.
Almost a year later in the third and fourth weeks of November 2012 the FDA found several problems in the Durata, which is the electrical wire that connects an implanted defibrillator to a patients heart. The FDA inspectors said that they found flaws in the testing process and oversight of the Durata. People have voiced their worries on the possible glitches in the Durata, and many of them are people who are very educated on the previous problems with the heart wire the Riata. One of these people is a heart specialist in Minnesota named Dr. Robert Hauser. He feels the people at St. Jude Medical have not given patients and doctors enough information, and early in 2012 he had written an article criticizing the Riata. But St. Jude Medical has stuck by their product, and claim the Durata will not be a problem like the Riata was because they used a different type of insulation.
Employment and Financial Problems
In August 2012 St. Jude Medical eliminated 300 positions from the company. Then in November 2012 they proceeded to eliminate 500 more jobs from the company. These two job cuts combined equal 5% of the company's global work force. And though this originally looked to be a bad thing or a sign of weakness people have speculated and company representatives have said that it is very helpful to company financials. The job cut of 300 will potentially save $50 million to $60 million in cost savings for 2013 Rachel Ellingson, vice president said. And the company is supposed to announce how much the second round of job cuts, that cut 500 jobs, will save in January. This prediction has given investors a very positive outlook, and they are saying that this is the company's way of becoming more efficient in a tough economy.
The CEO, Daniel J. Starks, was arrested in New Delhi, India in 2011 for violating local arms control laws.
- St. Jude Medical, Inc. (2012). History of St. Jude Medical. Retrieved December 10, 2012, from St. Jude Medical website: http://www.sjm.com/corporate/ about-us/history.aspx
- "FDA Safety Communication: Premature Insulation Failure in Recalled Riata Implantable Cardioverter Defibrillator (ICD) Leads Manufactured by St. Jude Medical, Inc.". Food and Drug Administration. 2012-08-16. Retrieved October 17, 2012.
- Walker, Joseph (October 17, 2012). "St. Jude Reports Lower Earnings, FDA Probe of Facility". The Wall Street Journal Online. Retrieved October 17, 2012.
- Meier, B. (2012, November 26). A Name Blacked Out, a Reputation at Risk. New York Times, Business. Retrieved from http://www.nytimes.com/2012/11/27/ business/st-jude-medical-suffers
- Walsh, J. (2012, November 2). St. Jude Medical job cuts may pay off. Star Tribune, Business. Retrieved from http://www.startribune.com/business/ 177048491.html?refer=y
- http://www.indianexpress.com/news/american-arrested-with-live-cartridge-at-delhi-airport/763371/ American arrested with live cartridge at Delhi airport