St. Jude Medical jumps nearly 50% for Q2, raises full-year outlook

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St. Jude Medical has posted a 49 percent rise in net income for the second quarter of 2008, which was helped by strong defibrillator sales in both the U.S. and overseas markets, along with boosting its full-year outlook for the second time in three months.

The St. Paul, Minn.-based company reported net sales of $1.14 billion in the second quarter of 2008, an increase of 20 percent compared to the $947 million in the second quarter of the previous year. St. Jude attributed its earnings to favorable foreign currency, which increased second quarter sales by approximately $64 million.

Reported net earnings for the second quarter of 2008 were $201 million, compared to reported net earnings for the second quarter of 2007 of $135 million, St. Jude said. In accordance with GAAP, the company said that the reported net earnings for the second quarter of 2008 do not include any benefit from the federal research and development tax credit, which has yet to be extended for 2008.

“These are outstanding results across the board, with revenue exceeding our guidance in every business category, and especially strong ICD [implantable cardioverter defibrillator] sales both in the U.S. and internationally…We therefore are increasing both our revenue and earnings guidance for 2008,” said Daniel J. Starks, St. Jude Medical chairman, president and CEO.

Total Cardiac Rhythm Management sales, which include ICD and pacemaker products, were $712 million for the second quarter of 2008, a 20 percent increase compared to the second quarter of 2007, St. Jude said. Of that total, ICD product sales were $406 million in the second quarter, a 24 percent increase compared to the second quarter of 2007. The second quarter pacemaker sales were $306 million, an increase of 14 percent from the comparable quarter of 2007.

For its atrial fibrillation sales, the company posted second quarter, which totaled $135 million, a 35 percent increase over the second quarter of 2007.

Overall, total cardiovascular sales, which include primarily vascular closure and heart valve products, were $228 million for the second quarter of 2008, a 14 percent increase more than the second quarter of 2007, St. Jude said. Sales of vascular closure products in the second quarter of 2008 were $97 million, a 9 percent increase more than the second quarter of 2007. The company also reported that its total heart valve product sales for the second quarter of 2008 were $87 million, a 14 percent increase over the second quarter of 2007.