St. Jude Medical, Inc. has reported sales and net earnings for the first quarter ended March 29, 2014, with a 4 percent revenue increase underpinned by healthy growth in ICD sales.
St. Jude points to a constant currency sales increase of 4 percent and adjusted net earnings per share increase of 9 percent on a constant currency basis, with a U.S. ICD sales increase of 5 percent.
By Business Area
Cardiac Rhythm Management (CRM)
Total CRM sales, which include implantable cardioverter defibrillator (ICD) and pacemaker products, were $687 million for the first quarter of 2014, a 1 percent increase compared with the first quarter of 2013 (3 percent constant currency).
Of that total, ICD product sales were $436 million in the first quarter, a 2 percent (3 percent constant currency) increase compared with the first quarter of 2013.
First quarter pacemaker sales were $251 million, flat compared with the first quarter of 2013. On a constant-currency basis, pacemaker product sales increased 2 percent in the first quarter.
Atrial Fibrillation (AF)
AF product sales for the first quarter totaled $251 million, an 8 percent (10% constant currency) increase over the first quarter of 2013.
Total cardiovascular sales, which primarily include vascular and structural heart products, were $326 million for the first quarter of 2014, a 1 percent decrease (2 percent constant currency increase) compared to the first quarter of 2013.
Total structural heart product sales for the first quarter of 2014 were $154 million, approximately equal compared with the first quarter of 2013. On a constant-currency basis, structural heart sales increased 3 percent.
Sales of vascular products in the first quarter of 2014 were $172 million, a 1 percent increase on a constant-currency basis over the first quarter of 2013.
Neuromodulation product sales were $99 million in the first quarter of 2014, flat compared with the first quarter of 2013.
Including special items, reported net earnings for the first quarter of 2014 were $249 million or $0.86 per share, compared with reported net earnings for the first quarter of 2013 of $223 million or $0.78 per share.
Second Quarter and Full-Year 2014 Sales and Earnings Guidance
The company announced four new CRM product approvals in the U.S., which are expected to accelerate sales in the second half of 2014. Also it announced CE Marking and European launch of its Prodigy™ Chronic Pain System, the first and only implantable neuromodulation system that delivers Burst Technology. This flush of good news stories leaves St. Jude predicting second quarter revenue in the range of $1.380 billion to $1.460 billion with a full-year 2014 forecast of $5.61 billion to $5.76 billion.
St. Jude Medical’s Chairman, President and Chief Executive Officer Daniel J. Starks said, “St. Jude Medical delivered a solid first quarter by meeting or exceeding our expectations in each of our technology platforms. These results reinforce our confidence that we are on track to accelerate sales growth as our product mix shifts to faster growing markets and as we continue to launch new products that improve patient outcomes, ensure the highest quality and lower the costs of treating expensive epidemic diseases.”
Source: St. Jude Medical, Inc., Business Wire