Financial

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, declines in Cardiac Rhythm Management sales being somewhat offset by increases in Atrial Fibrillation and Neuromodulation revenues.

Steris Corporation is to acquire United States Endoscopy Group, Inc. and in so doing significantly expand its presence in the gastrointestinal(GI) procedural market with a franchise of proprietary, single-use consumable medical devices.

Johnson & Johnson has just announced sales of $16.5 billion for the second quarter of 2012, a decrease of 0.7% as compared to the second quarter of 2011, albeit with a significant currency loss painting a gloomier picture than the top line figures suggest.

Cartiheal, a privately held device company developing an innovative cell-free technology for regenerating hyaline cartilage, has raised up to $10 million which it will use to accelerate the development of Agili-CTM, as well as support ongoing clinical studies.

Smart move for Cyberonics as it spots an opportunity to tap into Imricor’s MRI-compatible lead capability for its own neuromodulation products.

Leeds, UK-based Surgical Innovations has renewed its UK distribution arrangement with the signing of a 5 year distribution deal with Elemental Healthcare.

Things are coming to a head over the US medtech sales tax levy this week as a new act designed to repeal the original legislation, has found its way through the Committee on Ways and Means in the U.S. House of Representatives, with support from both parties.

In the same week that the device giant Medtronic announced better than expected financial results including headline items like a 28% year-on- year quarterly earnings increase, it has also been revealed that the company is to shed around 1000 jobs.

It’s a solid set of figures with some genuine highlights, not least the OUS sales increase and positive results from some key new product introductions and acquisitions. Medtronic is sounding pretty upbeat and putting a few bad experiences behind it.

Elsevier Business Intelligence (EBI), publisher of “The Gray Sheet”, is holding its IN³ Medical Device 360° at the Hyatt Regency Boston, June 27-29 2012.

Hospitals and purchasers have woken up to the threat that medical device companies will find ways to dump the burden of the 2.3% tax levy on them. So they’re lobbying the taxman to make sure there are no loopholes through which companies can jump to deduct the tax from income while also passing on the costs to the customer.

So the EU (European Commission) funds a collaborative project to develop a technology that addresses a very real (and rather high profile) clinical need. Collaborating companies benefit and so thrive and employ more people, in so doing addressing the need to do just that. This new continental collaborative concept might just work and if it does everyone’s a winner.

Whichever side of the argument you come down on, you’ll have noticed the 2.3% device tax debate and will no doubt have a view. We explain why we’re giving the campaign air time.

Covidien looks to be pressing all the right buttons as its year-on-year quarterly picture suggests sales are increasing while margins are also being driven up.

Given the furore, it’s no surprise that St.Jude’s Cardiac Rhythm Management sales dipped in Q1 2012. While overall company sales grew, the net effect on the bottom line was a reduction from $233M to $212M compared with the equivalent quarter a year ago.

Stryker’s financial report for Q1 looks pretty rosy as sales and profits climb nicely. Projections are pretty conservative though with anticipated sales growth of 2-5% for the year.