2015 med tech R&D budget: $676 million
Change from 2014 budget ($692 million): -2%
Percent of 2015 segment sales ($5.54 billion): 12%
St. Jude Medical ($STJ) kept its R&D wheelhouse going this past year with a slate of new approvals and positive study results. But the company still has some ground to cover, especially in cardiac rhythm management, new CEO Michael Rousseau said earlier this year at the J.P. Morgan Healthcare Conference.
St. Jude has struggled to get reimbursement for its CardioMEMS Heart Failure Monitor and several of its other CRM products, which include implantable defibrillators and pacemakers.
Still, St. Jude is doing everything it can to keep up with big-name peers including Medtronic ($MDT). The company has focused on neurostimulation, atrial fibrillation and ventricular assist devices as areas ripe for growth.
Last year, the company got FDA approval for a recharge-free spinal cord stimulation system to treat chronic back pain. In April 2016, St. Jude launched its Axium neurostimulation system for chronic pain.
St. Jude’s $3.4 billion deal for Thoratec last year helped it expand its cardiology portfolio. The company said it would pair its CardioMEMs heart failure monitor with Thoratec’s heart pump devices to gain ground in the market.
In October, St. Jude announced that it wanted to create a “smart” blood pump by developing the HeartMate II left ventricular assist device that it picked up through its Thoratec acquisition. The platform can “be leveraged to improve our HeartMate product portfolio significantly faster and with less additional investment than Thoratec was capable of doing on its own,” former CEO Daniel Starks said at the time.
St. Jude has also made strides with its stroke-fighting device. In May 2016, an FDA panel backed the device by a 15-1 vote, setting the stage for the product’s eventual approval.
St. Jude launches chronic pain neurostim Axium in U.S.
St. Jude touts favorable outcomes study of CardioMEMS heart failure monitor
St. Jude stock up on duo of FDA approvals related to pacing and neurostimulation
JPM: St. Jude plagued by gap in its portfolio of pacemakers and implantable defibrillators
St. Jude earns FDA approval for recharge-free spinal cord stimulation system
St. Jude aims to develop 'smart' blood pump following close of $3.4B Thoratec deal