St. Jude's CRM, a-fib arms propel its returns for Q4, FY10

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St. Jude Medical has reported positive sales and net earnings for the fourth quarter and year, which ended Jan. 1, and were bolstered by increased profits in its cardiac rhythm management (CRM) and atrial fibrillation segments.

The St. Paul, Minn.-based company reported net earnings for the fourth quarter of 2010 was $206 million, which compares with net earnings for the fourth quarter of 2009 of $190 million. For 2010, reported net earnings were $907.4 million, which compares with net earnings of $777 million in 2009.

The net sales of $1.35 billion in the fourth quarter of 2010 represents an increase of 12 percent over the $1.2 billion in the fourth quarter of 2009, and includes a $25 million contribution in the quarter from recently acquired AGA Medical, according to St. Jude. Net sales in 2010 were $5.17 billion compared to $4.68 billion in 2009, an increase of 10 percent.

“2010 was a highly successful year for St. Jude,” said Daniel J. Starks, its chairman, president and CEO. “In spite of difficult macro-economic challenges, we grew adjusted EPS by 24 percent and invested approximately $2 billion through research and development and acquisitions.”

For its CRM segment, which includes implantable cardioverter-defibrillator (ICD) and pacemaker products, total sales were $762 million for the fourth quarter of 2010, a 9 percent increase compared with the fourth quarter of 2009.  Total CRM product sales for 2010 were $3.04 billion, representing a 10 percent increase over 2009.

Of that CRM total, ICD product sales were $458 million in the fourth quarter, a 16 percent increase compared with the fourth quarter of 2009. ICD product sales for 2010 were $1.82 billion, representing a 15 percent increase over 2009. Fourth quarter pacemaker sales were $304 million, consistent with last year’s fourth quarter. Total pacemaker sales for 2010 were $1.22 billion, up 2 percent over 2009.

Atrial fibrillation (AF) product sales for the fourth quarter totaled $193 million, a 13 percent increase over the fourth quarter of 2009, St. Jude reported. For 2010, AF product sales were $708 million, an increase of 13 percent over the prior year.

Likewise, the company said for its cardiovascular segment, which primarily includes vascular closure and heart valve products, total sales were $287 million for the fourth quarter of 2010, a 20 percent increase over the fourth quarter of 2009, including a $25 million contribution from recently acquired AGA Medical. Total cardiovascular product sales for 2010 were $1.04 billion, up 9 percent over 2009.

Sales of vascular closure products in the fourth quarter of 2010 were $92 million, a 2 percent decrease from the fourth quarter of 2009. Total vascular closure product sales for 2010 were $375 million, down 2 percent from 2009. Total heart valve product sales for the fourth quarter of 2010 were $87 million, up 10 percent compared with the fourth quarter of 2009. Total heart valve product sales for 2010 were $337 million, up 4 percent compared with 2009.