St. Jude Medical Inc.
) 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%.
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The medical devices behemoth has a market cap of $16.15 billion.
Average volume of shares traded over the last three months stood
at approximately 1,620.4K.
Shares of St. Jude Medical rose 2.6% and reached 52-week high due
to the positive indications given by U.S. Food and Drug
Administration (FDA) regarding the approval of an implantable
heart device manufactured by CardioMEMS, in which the company has
a significant stake since 2010.
According to briefing documents released by FDA last week, the
approval for CardioMEMS' Champion Heart Failure Monitoring System
will be considered in a panel meeting on Oct 9 as the device is
proved to be effective in reducing hospitalization rates among
patients with heart failure.
STJ has a 19% stake in privately-held cardiac devices maker
CardioMEMS and has the right to acquire the remaining shares of
the company. In 2011, the Champion HF device failed to win
regulatory approval due to lack of convincing clinical research
However, CardioMEMS conducted additional studies on the device
and requested the FDA to reconsider its decision in 2012. In
order to strengthen its relation with CardioMEMS, in the
beginning of 2013, St. Jude had announced that it will provide
$28 million in debt financing to gain an FDA approval for the
The CardioMEMS HF System is a permanently implantable pressure
measurement system designed to provide daily pulmonary arterial
pressure measurements including systolic, diastolic, and mean
pulmonary arterial (PA) pressure. These measurements are used to
guide treatment of congestive heart failure. The FDA approval of
the device should significantly boost STJ's dwindling top line
Currently, St. Jude Medical retains a Zacks Rank #3 (Hold). While
we remain on the sidelines about the company, stocks that are
currently performing well in the medical products industry
Trinity Biotech plc
) with a Zacks Rank #1 (Strong Buy), and
Boston Scientific Corp.
), both with a Zacks Rank #2 (Buy).