St. Jude Medical’s revenue increases in 4Q, but cardiac rhythm management division lags

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 - MoneyMedicine

For the fourth quarter of 2015, St. Jude Medical’s revenue in its cardiac rhythm management division declined 10 percent on a constant-currency basis compared with the same time period in 2014. Meanwhile, revenue in its atrial fibrillation, cardiovascular and neuromodulation divisions increased 4 percent, 2 percent and 9 percent, respectively.

Overall, the company’s  revenue for the quarter was $1.4 billion, a 7 percent increase compared with the fourth quarter of 2014. Net sales for the full year of 2015 increased 6 percent over 2014 to $5.5 billion.

Net earnings for the fourth quarter were $113 million ($0.39 per share), a decrease from $245 million ($0.84 per share) during the fourth quarter of 2014. For the full year of 2015, net earnings were $880 million ($3.07 per share), down from $3.46 per share in 2014.

The cardiac rhythm management division includes implantable cardioverter defibrillators (ICDs) and pacemakers. For the full year, ICD sales decreased 4 percent and pacemaker sales decreased 2 percent. For the fourth quarter, ICD sales declined 11 percent and pacemaker sales declined 7 percent.

“Global results were impacted by lower sales in the U.S. as the company is facing increased pressure in the MRI conditional category of products,” the company said in a news release. “This decline was partially offset by solid results in countries where MRI conditional products are offered and continued adoption of our MultiPoint Pacing technology in Europe.”

For the full year, St. Jude Medical’s atrial fibrillation division’s revenue increased 13 percent, led by adoption of its FlexAbility and TactiCath ablation catheters. Meanwhile, revenue for the cardiovascular division increased 6 percent in 2015 and revenue for the neuromodulation division increased 14 percent. The cardiovascular division includes the company’s structural heart and vascular products.

In October, St. Jude Medical  completed the acquisition of Thoratec to expand its heart failure business. For the fourth quarter, sales of Thoratec products increased 15 percent to $136 million.

St. Jude Medical also provided guidance for 2016 and noted that it expects sales to increase by 2 percent to 4 percent for the year and be flat for the first quarter. The company expects consolidated adjusted net earnings to be $0.87 to $0.89 per share in the first quarter and $3.95 to $4.05 for the full year.