|2013 med tech R&D budget:||$691 million|
|Change from 2012 budget ($676 million):||2.2%|
|Percent of company net sales ($5.5 billion):||12.6%|
One of only three pure-play device companies on the list, St. Jude Medical ($STJ) is focused on cardiovascular diseases such as coronary artery disease, heart failure and atrial fibrillation.
In 2013 it launched Nanostim, the world's first leadless pacemaker, and began U.S. trials for FDA approval in March. Seeking to join Medtronic ($MDT) and Edwards Lifesciences ($EW) in the marketplace for patients who are too frail for open-heart surgery, St. Jude recently completed the first U.S. implant of its CE-marked Portico TAVR device in May.
In addition, the company is awaiting word from the FDA on its TactiCath irrigated ablation catheter that gives physicians real-time readings of how much pressure they're applying to the heart wall during atrial fibrillation procedures.
Looking forward, St. Jude is staying committed to renal denervation in the U.S. despite questions surrounding the trial due to Medtronic's failed clinical trial. St. Jude announced positive renal denervation data at May's EuroPCR conference, but it is unlikely that the FDA will approve the company's device until the conclusion of its sham-controlled EnligHTN IV trial at the end of 2017.
Neuromodulation products for chronic pain and neurological diseases made up 8% of St. Jude's net sales in 2013. To that end, the company last month announced that it has received a CE mark for its Prodigy chronic pain system. St. Jude says that by providing a burst of stimulation, the device reduces or eliminates the tingling sensation felt by patients on competing products.
The R&D budget was up slightly year over year but still below 2011's $705 million in spending. The longer-term decrease reflects a restructuring in 2012 that claimed 5% of the workforce, according to the annual report.
In 2013, St. Jude took a $23 million charge related to the termination of an unspecified research agreement, the annual report says. -- Varun Saxena (email | Twitter)
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