STJ ST. Jude Medical, Inc.

Medtronic (MDT) has started a post-approval study of Endurant AAA Stent Graft System for the treatment of abdominal aortic aneurysms (AAA). The first patient under the post-approval study has been enrolled in early August. The long-term safety and effectiveness study will enroll about 325 patients across 25 sites in the US.

Endurant AAA Stent Graft received approval from the US Food and Drug Administration (FDA) in December 2010. The device has been used to treat more than 6,000 patients in the US.

CardioVascular is Medtronic’s third biggest segment that generated $850 million of revenues during the first quarter of fiscal 2012, up 19% year over year (up 11% at CER). Revenues increased 10% in the US accompanied by strong international performance (11% growth) particularly in emerging markets (30% at CER).

The segment’s robust results were driven by overall growth in all three of its sub-components – Coronary (up 14% or 6% at CER to $389 million), Structural Heart (up 23% or 15% at CER to $275 million) and Endovascular & Peripheral (up 23% or 16% at CER to $186 million). Endovascular revenues were bolstered by a 27% rise in US sales on the back of the Endurant abdominal stent graft success.

During the most recent quarter, the company’s other segments – CRDM, Spinal, Neuromodulation, Diabetes, Surgical Technologies and Physio-Contro generated corresponding sales of $1.253 billion (up 2% year over year but down 3% at CER), $825 million (flat or down 3% at CER), $397 million (up 7% or 4% at CER), $355 million (up 14% or 9% at CER), $266 million (up 13% or 9% at CER) and $103 million (up 23% or 17% at CER).

Fiscal 2011 has been one of the most challenging years for Medtronic stemming from the macroeconomic downturn and decreased utilization. Besides, the company faces stringent competition from well-funded rivals like Boston Scientific (BSX) and St Jude Medical (STJ).

The company has undertaken several steps to better adapt to the changing environment. Having witnessed various challenges in its core segments, Medtronic has shifted its focus to areas such as CardioVascular, Diabetes and Neuromodulation to drive its top line.

 
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