STJ ST. Jude Medical, Inc.

St. Jude Medical (STJ) has announced the approval and launch of industry's first quadripolar pacing system in India, representing a major milestone for the St. Paul, Minnesota-based medical devices major. St. Jude is currently the only company to offer quadripolar pacing technology globally.

The device dubbed “Promote Quadra” cardiac resynchronization therapy defibrillator (“CRT-D”) enables physicians to more effectively manage the pacing needs of patients with heart failure (inability of the heart to pump enough blood). It is already approved for marketing in Europe.

Roughly 23 million people globally are affected by congestive heart failure (“CHF”) with 2 million new cases added annually. Cardiac resynchronization therapy (“CRT”), delivered through implantable cardioverter defibrillator (“ICD”) or a pacemaker, resynchronize the beating of the heart’s lower chambers that often beat abnormally in patients with heart failure. CRT has been found to be effective in improving the quality of life in many patients with heart failure.

Promote Quadra CRT-D is armed with multiple pacing configuration, features and programming options, allowing surgeons to optimize the system at implant to better manage common pacing complications such as phrenic nerve or diaphragmatic stimulation, which can occur in patients implanted with a CRT system. Besides, it also reduces the need for surgical revisions.

Phrenic nerve or diaphragmatic stimulation takes place when an electrical output from a CRT device unintentionally activates the diaphragm muscle, resulting in major discomfort for patients. The complication generally occurs due to the location of left ventricular (“LV”) pacing lead electrode.

Promote Quadra uses the “Quartet” LV pacing lead, the first lead to feature four pacing electrodes which can be used in up to ten pacing configurations. This provides a greater number of options and control and enables surgeons to place the lead in the most stable position and manage implant complications, resulting in improved patient outcome.

St. Jude is poised for incremental opportunities in CRM on the back of strong product momentum. Its Fortify and Unify devices are already gaining notable traction. Several new products should boost the company’s CRM share in 2011.

However, St. Jude and its peers Medtronic (MDT) and Boston Scientific (BSX) are fighting a turf war to grab share in the soft CRM market. The sustained weakness in this market is expected to hurt the company’s CRM sales in 2011. Our Neutral recommendation on St. Jude is in tandem with a Zacks #3 Rank (Hold).

 
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