Sluggish CRM sales continue to affect St. Judes bottom line
St. Jude Medical has reported slight increases in net earnings for the fourth quarter and year ending Dec. 31, 2011, despite a dip in cardiac rhythm management (CRM) sales. However, double-digit sale increases for both the fourth quarter and fiscal year for the atrial fibrillation and cardiovascular units bolstered the company.

The St. Paul, Minn.-based company reported net sales of $1.41 billion in the fourth quarter of 2011, an increase of 4 percent over the $1.35 billion in the fourth quarter of 2010. Foreign currency translation comparisons increased fourth quarter sales by approximately $18 million.

Net sales in 2011 were $5.61 billion compared with $5.16 billion in 2010, an increase of 9 percent. Foreign currency translation comparisons increased sales in 2011 by about $183 million.

Total CRM sales, which include implantable cardioverter-defibrillator (ICD) and pacemaker devices, were $728 million for the fourth quarter of 2011, a 4 percent decrease compared to the fourth quarter of 2010, according to St. Jude. Total CRM product sales for the full year of 2011 were $3.03 billion, essentially equal to 2010 sales.

Of that total, ICD product sales were $436 million in the fourth quarter, a 5 percent decrease compared to the fourth quarter of 2010. ICD product sales for the full year of 2011 were $1.82 billion, flat when compared to 2010. St. Jude also reported that its fourth quarter pacemaker sales were $292 million, a 4 percent decrease compared to the fourth quarter of 2010. Total pacemaker sales for 2011 were $1.21 billion, approximately equal to pacemaker sales in 2010.

Atrial fibrillation (AF) product sales for the fourth quarter totaled $218 million, a 13 percent increase over the fourth quarter of 2010. For the full fiscal year of 2011, AF product sales were $822 million, an increase of 16 percent over the prior year.

Total cardiovascular sales, which primarily include vascular and structural heart products, were $340 million for the fourth quarter of 2011, an 18 percent increase over the fourth quarter of 2010. Total cardiovascular product sales for 2011 were $1.34 billion, up 29 percent over 2010.

Sales of vascular products in the fourth quarter of 2011 were $190 million, an 8 percent increase from the fourth quarter of 2010. Total vascular product sales for 2011 were $740 million, up 10 percent from 2010.

Total structural heart product sales for the fourth quarter of 2011 were $150 million, up 35 percent compared with the fourth quarter of 2010. Total structural heart product sales for 2011 were $597 million, up 64 percent compared to 2010.