Analysts See More Concerns as Another Lead Issue (QuickSite/QuickFlex) Casts Larger Shadow Over St. Jude (STJ)
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Price: $80.82 --0%
Rating Summary:
3 Buy, 21 Hold, 1 Sell
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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This morning, St. Jude Medical (NYSE: STJ) announced it is proactively informing physicians about visual observations of externalized conductors on the silicone end of QuickSite and QuickFlex Left-Ventricular (LV) Leads, used to connect Cardiac Resynchronization Therapy (CRT) devices to the heart.
The Company said there have been no reports of patient injury or loss of therapy, however, STJ said it will no longer sell these lead models.
Wells Fargo analyst, Larry Biegelsen, said, "Given the ongoing issues with Riata, we think this advisory may cause some physicians to question STJ's product quality and further diversify their risk by spreading their device usage across the three major CRM companies. With that said, there is no evidence that the newer Quartet left heart lead is affected by this issue, but we think it is likely that STJ share gains on the back of Quartet could be dampened slightly." (Maintains Market Perform Rating)
At Deutsche Bank, analyst, Kristen Stewart who maintains a 'Buy' rating was a little more defensive on the stock, saying, "It's important to realize STJ has other leads to sell including the unipolar version of QuickSite, QuickFlex m, and the most recently introduced Quartet. The latter two leads use Optim insulation, which has been shown to be greater than 50x more abrasion resistant than silicone."
Stewart did however, acknowledge that another lead issue does cast a larger shadow over the company and feels there is more headline risk over the next three months.
The Company said there have been no reports of patient injury or loss of therapy, however, STJ said it will no longer sell these lead models.
Wells Fargo analyst, Larry Biegelsen, said, "Given the ongoing issues with Riata, we think this advisory may cause some physicians to question STJ's product quality and further diversify their risk by spreading their device usage across the three major CRM companies. With that said, there is no evidence that the newer Quartet left heart lead is affected by this issue, but we think it is likely that STJ share gains on the back of Quartet could be dampened slightly." (Maintains Market Perform Rating)
At Deutsche Bank, analyst, Kristen Stewart who maintains a 'Buy' rating was a little more defensive on the stock, saying, "It's important to realize STJ has other leads to sell including the unipolar version of QuickSite, QuickFlex m, and the most recently introduced Quartet. The latter two leads use Optim insulation, which has been shown to be greater than 50x more abrasion resistant than silicone."
Stewart did however, acknowledge that another lead issue does cast a larger shadow over the company and feels there is more headline risk over the next three months.
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