St. Jude Medical, Inc. has reported sales and net earnings for the second quarter ended June 30, 2012. Compared with the equivalent period a year ago net sales of $1.410 billion represented a decrease of 2 percent, which was actually an increase of 1 percent after adjusting for the impact of foreign currency. The full release can be found here.
Cardiac Rhythm Management (CRM)
CRM includes implantable cardioverter defibrillator (ICD) and pacemaker products. ICDs, especially St.Jude’s Riata, have been an ever-present subject in the medtech news media for the past year and the company could best be described as embattled as it has faced up to the problems associated with its older generation leads. Perhaps unsurprisingly, especially as the CRM market is itself seemingly in something of a slump, sales of $746 million for the second quarter of 2012, represent a 6 percent decrease compared with the second quarter of 2011. After adjusting for currency changes the second quarter decrease was a slightly rosier 3 percent.
Speaking specifically about ICD product sales, revenue was $459 million in the second quarter, a 4 percent decrease compared with the second quarter of 2011 (1 percent on constant currency basis).
Pacemaker sales were $287 million, a 9 percent decrease compared to the second quarter of 2011(5 percent on constant currency basis).
Atrial Fibrillation (AF): $218 million, +5% (+8% on a constant currency basis)
Neuromodulation: $106 million, +2% (+5% on a constant currency basis)
Cardiovascular: Cardiovascular sales primarily include vascular and structural heart products. $340 million, -1% (+3 percent on a constant currency basis).
Specifically, vascular products were $180 million, down 5 percent from the comparable quarter of 2011. Structural heart products were $160 million, a 5 percent increase over the second quarter of 2011.
In the second quarter of 2012 the Company recorded after-tax charges of $27 million, or $0.08 per share primarily related to restructuring actions initiated during the second quarter of 2011 to realign certain activities within its CRM business. This consists primarily of closing down operations at its location in Sweden as well as costs associated with continuing efforts to leverage sales and sales support organizations.
Including numerous exceptional items and charges including, for example, restructuring costs reported net earnings were $244 million, or $0.78 per share, compared with prior year’s $241 million, or $0.72 per share.
Commenting on the second quarter and the Company’s ongoing program, St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “All of St. Jude Medical’s second quarter results fell within our previously announced guidance ranges. We continued to make good progress during the quarter implementing new product programs designed to accelerate our growth in 2013. We are focused on delivering innovative medical devices that both improve patient outcomes and reduce the cost of health care.”
Source: St.Jude Medical Inc., Business Wire