St. Jude Medical ($STJ) reported net sales of roughly $1.4 billion during the third quarter, an increase of 12% versus the same period last year.
During a conference call, the company pointed out that 48% sales came in the U.S., while 52% came from international markets. Total cardiovascular sales, which include vascular and structural heart products, were $328 million during the quarter, a 37% jump over last year. The increase is due in part to sales from AGA Medical, which St. Jude Medical acquired in November 2010.
The company also saw a noticeable uptick in atrial fibrillation product sales, which totaled $202 million, a 20% percent increase over the third quarter of 2010.
However, total cardiac rhythm management sales, which include ICD and pacemaker products, were $751 million for the third quarter of 2011, a modest 2% increase compared with the same period last year. During the conference call, CEO Daniel Starks reiterated the company's position that the global CRM market will shrink roughly 2% for full year 2011. It is a tough market, but is in a "reasonably steady state." And although there are difficulties right now, Starks pointed to the "minuscule" number of CRM implants per population in emerging markets--particularly China and India. With growth in those areas, there is some optimism about the long-term CRM market, and St. Jude is poised to capitalize on that potential at the right time.
Starks also emphasized the medtech industry is facing numerous challenges, including the impact of the EU debt crisis and healthcare reform. While these are legitimate issues, St. Jude has set itself apart by preparing to accelerate growth despite these concerns.
"We made good progress during the third quarter implementing numerous new growth drivers. We are supporting these new growth drivers with robust comparative effectiveness data," said Starks in a statement. "We simultaneously are reducing costs and increasing productivity. St. Jude Medical's program for delivering superior growth over the long-term is on track."
- check out the St. Jude release