St. Jude Medical Inc.
) revealed that according to data presented at Late Breaking
Clinical Trial Session during Heart Rhythm 2014 - the Heart Rhythm
Society's Annual Scientific Sessions, patients adhering to St. Jude
Medical Merlin Remote Monitoring System had more than twice (2.4x)
the probability of survival than that of patients without remote
Shares of St. Jude Medical rose 0.6% following the announcement of
results from the study.
The results were derived from more than 260,000 patients implanted
with either pacemakers or defibrillators. The observational study
showed that greater adherence to remote monitoring enhances the
well-being of patients and reduces mortality.
According to the study, patients with high adherence to remote
monitoring had a 58% reduced likelihood of mortality than patients
without using remote monitoring and a 35% reduced likelihood of
mortality than patients with low remote monitoring. Although the
results may vary according to geographic regions, socioeconomic
factors were not associated with remote monitoring use.
The adherence to remote monitoring is measured as weekly
transmission of patient data from the Merlin Home System to the
Merlin.net Patient Care Network at least 75% of the time.
The Merlin Patient Care System supports St. Jude Medical cardiac
resynchronization therapy (CRT) devices, implantable cardioverter
defibrillators (ICDs) and pacemakers. The system was designed to
assist physicians efficiently analyze therapeutic and diagnostic
The study included all FDA-approved implantable cardiac devices
capable of radiofrequency (RF) remote monitoring by St. Jude
Medical. This is the largest study of remote monitoring ever done
on pacemaker patients. It is also one of the largest studies for
St. Jude Medical posted a 4.3% rise in adjusted net earnings per
share to 96 cents for the first quarter of 2014 from 92 cents a
year-ago. With this, the company beat the Zacks Consensus Estimate
by a penny and met its own guidance of 94 and 96 cents per share
for the quarter.
Revenues grew about 2.0% to $1,363 million for the quarter,
exceeding the Zacks Consensus Estimate of $1,355 million as well as
the company's own guided range of 1,280 to $1,360 million.
Unfavorable foreign currency translation reduced revenues by
roughly $25 million.
For the second quarter of 2014, St. Jude Medical expects revenues
in the range of $1,380 to $1,460 million while the company
anticipates adjusted net earnings per share to lie between 99 cents
and $1.01 for the quarter. The current Zacks Consensus Estimates
for earnings per share and revenues for the quarter are pegged at
$1.00 and $1,437 million.
For full year 2014, St. Jude Medical upgraded its revenues guidance
to the range of $5,610 to $5,760 million from the prior range of
$5,600 to $5,750 million. It also upgraded its adjusted earnings
per share guidance to $3.95-$4.00 from the prior range of
$3.94-$3.99. The current Zacks Consensus Estimates for earnings per
share and revenues for the year are pegged at $3.98 and $5,702
Currently, St. Jude retains a Zacks Rank #3 (Hold). Some
better-ranked stocks in the medical products industry that are also
worth considering include
Eagle Pharmaceuticals Inc.
). All of them retain a Zacks Rank #2 (Buy).
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