St. Jude Medical Inc.
) revealed that it has acquired the privately held world's first
and only leadless pacemaker manufacturer Nanostim, Inc. for
$123.5 million, utilizing an exclusive option obtained on May 3,
2011 by entering a partnership agreement with the latter.
BIO-RAD LABS -A (BIO): Free Stock Analysis
DIADEXUS INC (DDXS): Get Free Report
INSYS THERAP (INSY): Free Stock Analysis
ST JUDE MEDICAL (STJ): Free Stock Analysis
To read this article on Zacks.com click here.
Sunnyvale, Calif.-based Nanostim produces pacemaker that can be
inserted through the femoral vein using a steerable catheter
through a minimally invasive surgery, thereby eliminating the
need for creating a pocket surgically for the device and its
insulated wires known as leads.
Due to its less than 10% size compared to a conventional
pacemaker, non-requirement of a surgical pocket and exclusion of
a lead, the pacemaker leads to better patient comfort and avoids
vulnerabilities arising out of pocket-related infection and lead
The device is also designed in a way so that it can be retrieved
later in case of battery replacement and repositioned if
necessary. Its battery is expected to have an average lifespan of
more than 9 years with 100% pacing, or more than 13 years with
The device is supported by the St. Jude Medical Merlin
Programmer, which is also used to program STJ's other pacemakers
and implantable cardioverter defibrillators (ICDs). It has
received CE Mark approval in Europe, where it will be sold in the
The device has also received conditional approval from U.S. Food
and Drug Administration (FDA) for its Investigational Device
Exemption (IDE) application in order to conduct clinical trials
in the U.S.
As per the merger agreement, St. Jude Medical is subjected to
additional cash payments of up to $65 million, based on the
achievement and timing of certain revenue-based milestones.
Although the agreement will not impact STJ's outlook for 2013
(except for acquisition-related expenses), the stock market
reacted positively to the news. Shares of the company edged up
1.6% at the beginning of the week.
Shares of St. Jude Medical hit new 52-week high of $57.17 on Oct
4 and closed at $56.23 on the same date, which represented a
solid one-year return of 32.5% and impressive year-to-date return
of 56.1%. Currently, the stock retains a Zacks Rank #2 (Buy). The
company is expected to report its third quarter results tomorrow.
Apart from STJ, stocks that are currently performing well in the
medical products industry
Bio-Rad Laboratories, Inc.
INSYS Therapeutics, Inc.
). All of them carry a Zacks Rank #1 (Strong Buy).