St. Jude Rises After U.S. Approval of Advanced Defibrillator
December 05, 2011, 4:37 PM ESTBy Michelle Fay Cortez
(Updates with closing stock price in second paragraph.)
Nov. 30 (Bloomberg) -- St. Jude Medical Inc., maker of devices to treat heart conditions, surged the most in more than 20 months after receiving U.S. regulatory approval for two products that may help the company grab a larger share of a $6 billion market.
St. Jude climbed 7.7 percent to $38.44 at the close in New York, the biggest single-day jump since March 2010. The St. Paul, Minnesota-based company said late yesterday that it received Food and Drug Administration approval for Quadra, which helps synchronize cardiac contractions in heart-failure patients, and the four-electrode Quartet lead.
The Quartet’s four electrodes enable physicians to adjust the electrical pulses without surgically moving the wires. The so-called Quad-Pole technology gives doctors flexibility when implanting cardiac devices, letting them install the wires where they are most secure and beneficial, said Larry Biegelsen, a Wells Fargo Securities analyst in New York, in a note to investors.
“We estimate Quad-Pole technology from Medtronic Inc. and Boston Scientific Corp. are at least one to two years behind Quartet, so St. Jude has a meaningful lead,” Biegelsen said.
--Editors: Bruce Rule, Andrew Pollack
To contact the reporter on this story: Michelle Fay Cortez in Minneapolis at mcortez@bloomberg.net
To contact the editor responsible for this story: Reg Gale at rgale5@bloomberg.net
