St. Jude's New Device Approval

St. Jude Medical, Inc. (STJ - Analyst Report) received the CE (Conformite Europeenne) Mark of approval for the world’s smallest, longest-lasting rechargeable deep brain stimulation (DBS) device, known as the Brio neurostimulator. The device is used for treating symptoms of Parkinson’s disease.

The Brio neurostimulator has 10-year battery longevity. This provides patients sustainable therapy for a longer period and maximizes the time between device replacement procedures.

According to the European Parkinson’s Disease Association, Parkinson’s disease affects approximately 6.3 million people globally. People between 40 and 70 years of age, with an average age of 60, are mostly affected by this disease.

The Brio neurostimulator approval enhances the breadth of St. Jude’s product offerings in the deep brain stimulation systems and increases the company’s top-line. St. Jude is a leading medical device manufacturer that designs, manufactures and distributes medical devices to treat cardiovascular and neurological conditions.

St. Jude has also recently received the CE Mark approval for another DBS system, the Guardian Burr Hole Cover System, that enables physicians to efficiently secure electrical leads. The company is also developing new DBS applications to cater to the increasing list of neurological and psychiatric disorders. Several clinical studies are going on in the U.S. for depression and essential tremor. 

St. Jude Medical holds the #2 market position for ICDs and pacemakers behind Medtronic Inc. (MDT - Analyst Report) but ahead of Boston Scientific Corporation (BSX - Analyst Report). This segment is the company’s largest in terms of revenue. St. Jude also holds the #2 market position behind Medtronic in neuromodulation.

Based on the company’s second quarter of 2009 results, we have assigned a Neutral rating to the company’s stock.

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