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Actionable news in STJ: ST. JUDE MEDICAL Inc,

St. Jude Medical, Inc Global Headquarters One St. Jude Medical Drive

The following excerpt is from the company's SEC filing.

St. Paul, MN 55117-9913 USA

Tel 651 756 2000

sjm.com

News Release

MEDIA CONTACT:

INVESTOR CONTACT:

Candace Steele Flippin

J.C. Weigelt

csflippin@sjm.com

jweigelt@sjm.com

Tel 651 756 3029

Tel 651 756 4347

St. Jude Medical Reports First Quarter 2016 Results

ST. PAUL, Minn. April 20, 2016 St. Jude Medical, Inc. (NYSE: STJ), a global medical device company, today reported sales and net earnings for the first quarter ended April 2, 2016.

First quarter 2016 highlights:

Net sales of $1.448 billion increased 8 pe rcent as reported, or 2 percent on a comparable constant currency basis, at the high end of the companys guidance range.

St. Jude Medical has successfully completed its integration of Thoratec; left ventricular assist device (LVAD) sales grew strong double digits on a comparable constant currency basis.

Neuromodulation sales increased approximately 10 percent on a constant currency basis as we continue to surround chronic pain with the most comprehensive product portfolio on the market.

Atrial fibrillation sales driven by double digit growth from the companys TactiCath

and FlexAbility

ablation catheters.

Adjusted earnings per share of $0.90 increased 9 percent on a constant currency basis, above the high end of the companys guidance range, with reported GAAP earnings per share of $0.33.

First Quarter 2016 Sales

The company reported net sales of $1.448 billion in the first quarter of 2016,

an 8 percent increase

compared to net sales of $1.345 billion in the first quarter of 2015. On a comparable constant currency basis, net sales increased by approximately 2 percent compared to the first quarter of 2015.

Commenting on the companys financial results, St. Jude Medical President and Chief Executive Officer

Michael T. Rousseau

said,

In the first quarter, we delivered sales and adjusted earnings per share at or above the high end of our guidance. With 10 product approvals and associated launches in key regions around the world, we demonstrated our commitment to bringing lifesaving products to patients while driving sales momentum in the areas of atrial fibrillation, heart failure and neuromodulation.

As previously announced, St. Jude Medical has changed its sales reporting to more closely align with how the company manages the business in five key areas: atrial fibrillation, heart failure, neuromodulation, cardiovascular and traditional cardiac rhythm management. For additional information please see the Form 8-K furnished by the company on January 13, 2016.

Atrial Fibrillation (AF)

AF product sales for the first quarter totaled $291 million, a 5 percent increase compared to the prior year quarter. On a constant currency basis, AF product

sales increased 9 percent compared to the prior

year quarter, largely driven by continued adoption of the FlexAbility and TactiCath ablation catheters.

Heart Failure (HF)

HF product sales, which include cardiac resynchronization therapy products, ventricular assist devices and the CardioMEMS

HF System products, totaled $374 million for the first quarter, a 49 percent increase compared to the prior year quarter. On a comparable constant currency basis, HF product

sales increased 2 percent compared to the prior year quarter driven by continued strength of Heartmate II

Left Ventricular Assist System in the United States. and the ongoing launch of Heartmate 3 Left Ventricular Assist System in Europe.

St. Jude Medical sales of neuromodulation products were $116 million in the first quarter of 2016, an 8 percent increase on a reported basis and a 10 percent increase on a constant currency basis

. Neuromodulation growth continues to be driven by the St. Jude Medical Burst technology offering in international markets as well as the Protégé and Proclaim

Spinal Cord Stimulation Systems both with upgradeable features in the United States.

Cardiovascular

Total cardiovascular sales were $301 million for the first quarter of 2016, flat

. On a constant currency basis, cardiovascular sales increased 3 percent

. Cardiovascular growth was driven by the first full quarter launch of all four sizes of the Portico Transcatheter Aortic Valve Implantation System in Europe as well as strong contributions from the fractional flow reserve and the optical coherence tomography product portfolios.

Traditional Cardiac Rhythm Management (CRM)

Total CRM sales, which include single and dual chamber implantable cardioverter defibrillator (ICD) and pacemaker products, were $366 million for the first quarter of 2016, a 10 percent decline compared with the first quarter of 2015. After adjusting for the impact of foreign currency, traditional CRM sales decreased 7 percent. Global results continue to be impacted by lower sales in the United States, partially offset by continued adoption of our MRI conditional product portfolio in countries where they are offered, particularly Japan with the recent launch of the MRI-conditional Ellipse

First Quarter Earnings Results

In the first quarter the company recognized net after-tax charges of $164 million, or $0.57 per diluted share, primarily related to acquisition-related costs, ongoing restructuring activities, strategic investment impairments, income tax adjustments and amortization of intangible assets. Including these items, reported net earnings for the first quarter of 2016 were $95 million or $0.33 per share, compared with reported net earnings for the first quarter of 2015 of $262 million or $0.91 per share. Excluding these items, adjusted net earnings for the first quarter of 2016 were $259 million or $0.90 per share. A reconciliation of the companys non-GAAP adjusted results to the companys GAAP reported results is provided in the schedules at the end of the press release.

Second Quarter and Full-Year 2016 Sales and Earnings Guidance

For the second quarter, St. Jude Medical expects revenue to grow in the range of 1 percent to 3 percent on a comparable constant currency basis

compared to the second quarter of 2015

with currency negatively impacting second quarter revenue by approximately $10 million to $15 million. For the full-year...


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