Greatbatch Extends with St. Jude – Analyst Blog

Recently, St. Jude Medical (STJ) selected Greatbatch Medical (GB) as the exclusive partner for filtered feedthroughs used in cardiac rhythm management (CRM) devices. The agreement becomes effective from July 1, 2010 and extends through 2017.

 

Per the agreement, Greatbatch has been awarded a 100% share of St. Jude’s feedthroughs and filtering business including an 80% share of the latter’s implantable pulse generator MRI filtered demand for feedthroughs. The company intends to provide St. Jude with a cost-effective technological solution and assist the company in marketing their technology.

 

Greatbatch’s other agreements with St. Jude, however, are not affected by this agreement.

 

In the first quarter of 2010, CRM and neuromodulation sales remained consistent with the prior-year first quarter. Sales benefited from an adoption of the Greatbatch’s Q batteries and further increased assembly revenues due to customer market share shifts. However, revenues as well as gross margins were affected by lower filtered feedthrough sales during the quarter.

 

Greatbatch expects the sales level to increase over the next several years through further consolidations and new product introductions. We hope the extension of the feedthrough agreement to be beneficial for the company’s top-line growth.

 

Greatbatch is committed to the design and manufacture of critical technologies that enhance the reliability and performance of medical devices and procedures. The feedthroughs employ the industry-leading engineering techniques. These are hermetically sealed to make sure that body fluids are not exposed to the internal device components while delivering effective therapy.

 

The company also produces batteries for commercial and industrial applications such as oil and gas exploration, oceanographic equipment, seismic surveying equipment, and others. The National Aeronautics and Space Administration (NASA) too uses Greatbatch batteries in its aerospace programs.