CE Mark for St. Jude's Ellipse ICD

Zacks

Medical devices major St. Jude Medical (STJ) recently revealed CE Mark for its Ellipse ICD. This tiny high energy device incorporates sophisticated features. It was designed with input from over 200 medical practitioners. The company believes that the Ellipse product line strengthens its cardiac rhythm management offerings (including the Unify Quadra CRT-D system). 

Implantable cardioverter defibrillators (:ICD) are sophisticated heart devices utilized for treating rapid heart beat. The Ellipse ICD is unusual, in the sense, that it is the only ICD conceptualized by doctors.     

Along with its novel design, the Ellipse has features over and above those included in the Fortify ICD. Some of these special aspects comprise CorVue congestion checks and revised ShockGuard know-how. Furthermore, the Ellipse ICD provides SecureSense RV, a novel capability that provides a number of lead monitoring abilities.    

The Ellipse ICD, like the Fortify ICD, is in congruence with the International Standards Organization details for the DF4 connector. St. Jude adopted the DF4 know-how in early 2009.

St. Jude is consistently producing revenue growth and positive earnings surprises over the past several quarters. We are impressed by its solid fundamentals, healthy growth trajectory, strong product mix, robust pipeline and cost management initiatives.

While a host of new growth drivers (including new products and emerging markets) are expected to boost results in 2012 and beyond, we remain cautious about increased competition, a still soft CRM market and the dilutive impact of acquisitions. 

A still choppy CRM space overhangs on St. Jude and its peers Medtronic (MDT) and Boston Scientific (BSX). Our long-term Neutral recommendation on St. Jude is in agreement with a short-term Zacks #3 Rank (Hold).

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