St. Jude Medical
| Company type | Public (until acquisition) |
|---|---|
| Industry | Medical devices |
| Founded | 1976 |
| Founder | Manuel A. Villafana |
| Defunct | January 5, 2017 |
| Fate | Acquired by Abbott Laboratories |
| Successor | Abbott Laboratories |
| Headquarters | Little Canada, Minnesota , United States |
Area served | Worldwide (primary markets: United States, Europe, Latin America, Asia-Pacific) |
Key people | Michael T. Rousseau (Chairman, President, and CEO 2016–2017) |
| Products | Implantable cardioverter-defibrillators, pacemakers, electrophysiology catheters, vascular closure devices, cardiac mapping and visualization equipment, optical coherence tomography imaging systems, structural heart repair solutions, neurostimulation apparatus |
| Owner | Abbott Laboratories (since 2017) |
Number of employees | 18,000 (2014) |
| Parent | Abbott Laboratories (from 2017) |
St. Jude Medical, Inc. was an international medical device manufacturer headquartered in Little Canada, Minnesota, a suburb of Saint Paul, Minnesota. The company operated more than 20 facilities worldwide and marketed its products across over 100 countries, with primary markets in the United States, Europe, Latin America, and the Asia-Pacific region. Taking its name from Jude the Apostle, recognized as the patron saint of lost causes, St. Jude Medical specialized in devices for cardiac rhythm management, implantable cardioverter-defibrillators, and neuromodulation technologies.
Established in 1976 by Manuel A. Villafana, the company went public a year later in 1977. It consistently appeared on the Fortune 500 list starting in 2010. By 2014, St. Jude Medical reported revenues of $5.6 billion and held assets valued at $10.2 billion, employing around 18,000 individuals. Its strategic focus centered on innovation and expanding its global footprint to sustain a competitive edge within the medical device sector.
From 2016 until its acquisition by Abbott Laboratories in January 2017 for approximately $25 billion, Michael T. Rousseau held the roles of chairman, president, and CEO. This acquisition significantly broadened Abbott’s market presence and product offerings in cardiac and neuromodulation fields, demonstrating a strategic approach aimed at growth through consolidation.
Early history
St. Jude Medical was founded in 1976 with the goal of advancing bi-leaflet artificial heart valve technology, initially developed in 1972 at the University of Minnesota. The valve’s development was primarily led by Dr. Demetre Nicoloff alongside St. Jude employee Don Hanson.
Founder Manny Villafana took the company public in February 1977. Later that year in October, Dr. Nicoloff performed the first implantation of the company’s artificial heart valve in a patient. This valve incorporated a pyrolytic carbon coating designed to minimize blood clot formation.
LaVerne Rees, who served as founding COO, became CEO in 1981 and spearheaded development of St. Jude’s proprietary carbon coating technology. This initiative resulted in legal conflict with CarboMedics, the exclusive supplier of carbon coatings at that time. Due to ongoing challenges related to this dispute, Rees was reassigned by the board toward the end of 1984.
In 1985, Lawrence Lehmkuhl—previously a division president at American Hospital Supply Corporation—was appointed CEO. Under his leadership, St. Jude resolved its legal issues with CarboMedics and obtained rights to manufacture limited quantities of its own carbon coating.
By 1986, St. Jude successfully implanted the first heart valve featuring its proprietary carbon coating in Germany. That same year marked expansion into tissue heart valves through acquiring BioImplant, thereby broadening both product offerings and market access.
1990s
In 1990, St. Jude Medical established an International Division based in Brussels, Belgium. In April 1991, it entered into a joint venture with Hancock Jaffe Laboratories to form Heart Valve Company aimed at developing tissue heart valves for the U.S. market; the first implantation from this venture occurred in 1994.
Ronald Matricaria succeeded Lehmkuhl as president and CEO in March 1993; Matricaria had previously served as president of Eli Lilly & Company's North American operations. Lehmkuhl transitioned to chairman of the board after overseeing a ninefold increase in sales during his tenure.
Matricaria emphasized diversification through acquisitions. In June 1994, St. Jude purchased Pacesetter, Inc., Siemens AG’s pacemaker division, for $500 million; Pacesetter was then ranked as the world’s second-largest pacemaker manufacturer.
In January 1996, St. Jude expanded into cardiac catheter technologies by acquiring Daig Corporation based in Minnetonka for $425 million and also gained full ownership of Heart Valve Company by buying out Hancock Jaffe Laboratories’ shares. Later that September, it acquired Brazilian tissue heart valve producer Biocor Industria.
Further diversification occurred in 1997 with the acquisition of Ventritex—a Sunnyvale-based implantable cardioverter-defibrillator manufacturer—for $352 million; Ventritex was ranked third globally among defibrillator producers.
In February 1999, St. Jude purchased Tyco International's Angio-Seal business for $167 million, establishing itself as a leader in vascular closure devices. Matricaria resigned as CEO in March 1999 and was replaced by Terry Shepherd, former president of the heart valve division; Matricaria remained chairman of the board thereafter.
2000s
In 2004, Terry Shepherd stepped down as CEO of St. Jude Medical following a period during which the company’s stock value increased by 277%. He was succeeded by Daniel Starks, the former CEO of Daig Corporation—an entity previously acquired by St. Jude—who assumed the role of Chief Operating Officer before becoming CEO.
Early in 2005, St. Jude expanded its portfolio by acquiring Endocardial Solutions for $272 million, thereby strengthening its offerings in atrial fibrillation therapies. Later that same year, the company purchased Advanced Neuromodulation Systems for $1.3 billion, securing a significant foothold in electrotherapy devices designed to manage chronic pain and neurological disorders.
In 2008, St. Jude Medical further enhanced its technological capabilities by acquiring MediGuide, an Israeli company specializing in sensor technology that improves device navigation during medical procedures.
2010s
In 2010, St. Jude Medical completed the acquisition of AGA Medical for $1.3 billion, incorporating devices such as plugs and patches used in treating heart defects into its product range. That year also included the purchase of LightLab Imaging, which bolstered the company’s expertise in optical coherence tomography technology.
The firm invested in CardioMEMS Inc., a company focused on wireless monitoring of pulmonary artery pressure, finalizing the acquisition in 2014.
A corporate restructuring took place in 2012, dividing operations into two main segments: implantable electronic systems and cardiovascular/ablation technologies. This reorganization centralized departments such as marketing, IT, and legal while reducing the global workforce by approximately 5%.
St. Jude acquired Swiss-based Endosense in 2013 for $330 million, adding catheter force-sensing technology to its ablation procedure offerings. Additionally, it invested $40 million in Spinal Modulation and completed the purchase of its Axium Neurostimulator System by 2015.
The company entered the leadless pacemaker market through the acquisition of Nanostim Inc. for $123.5 million in 2013, following an earlier investment and regulatory approval of Nanostim’s device within the European Union.
Further consolidation occurred in 2014 when research and development activities were unified under a single division, alongside merging global manufacturing and supply chain functions.
In July 2015, St. Jude announced plans to acquire Thoratec Corporation for $3.4 billion; this transaction was finalized in October of that year.
Following Daniel Starks’ retirement as CEO in September 2015, Michael T. Rousseau assumed leadership on January 1, 2016, while Starks continued as executive chairman.
Abbott Laboratories declared its intention to acquire St. Jude Medical for $25 billion in April 2016, completing the acquisition on January 5, 2017.
Acquisition history
Key mergers and acquisitions associated with the company include:
- St. Jude Medical (established 1976), which undertook significant acquisitions such as Pacesetter, Inc. (1994), Daig Corporation (1996), obtaining the remaining half of Heart Valve Company (1996), Biocor Industria (1996), Ventritex (1997), and acquiring the Angio-Seal division from Tyco International (1999).
- Subsequent strategic purchases by St. Jude Medical encompassed Endocardial Solutions and Advanced Neuromodulation Systems (both acquired in 2005), MediGuide (2008), AGA Medical and LightLab Imaging (2010), CardioMEMS Inc. (2014), Endosense (2013), Spinal Modulation (2015), and Nanostim Inc. (2013).
- Thoratec Corporation was integrated into the company’s portfolio in 2015; Thoratec had previously expanded through acquisitions including Apica Cardiovascular Limited (2014), Levitronix (2011), the heart pump technology unit from Getinge Group (2014), and Thermo Cardiosystems (2010).
These acquisitions have collectively broadened the company’s product range, increased market penetration, and enhanced its international presence within the medical device sector.
Operations
St. Jude Medical specializes in the production of implantable cardioverter-defibrillators (ICDs), pacemakers, electrophysiology catheters, vascular closure devices, cardiac mapping and visualization equipment, optical coherence tomography (OCT) imaging systems, structural heart repair solutions, and neurostimulation apparatus. The company’s structure is divided into two main sectors: research and development, and manufacturing coupled with supply chain management.
The organization maintains six technology hubs located in Brussels, Beijing, Tokyo, Austin, St. Paul, and Sylmar. These facilities offer physician education and replicate patient procedures utilizing St. Jude Medical’s advanced devices and technologies.
Products
St. Jude Medical manufactures ICDs and implanted cardiac resynchronization therapy defibrillators (CRT-Ds) that incorporate quadripolar lead technology. This design employs four electrodes on a single lead to stimulate multiple cardiac sites, thereby improving therapeutic accuracy and enhancing patient care outcomes.
In 2013, the company introduced the Ilumien Optis system, a diagnostic device for coronary artery disease that integrates fractional flow reserve (FFR) measurement with OCT imaging. This combination allows clinicians to visually evaluate arterial health and optimize percutaneous coronary interventions (PCI), reinforcing St. Jude Medical’s leadership in cardiovascular diagnostic solutions.
MediGuide
St. Jude Medical created MediGuide, a cardiac navigation and visualization platform delivering real-time fluoroscopic imaging. This technology assists physicians in tracking devices equipped with MediGuide sensors during implantation procedures while significantly minimizing radiation exposure for patients undergoing cardiovascular treatment.
Nanostim
In October 2013, St. Jude Medical expanded its portfolio by acquiring Nanostim, advancing the development of leadless pacemaker technology. Nanostim’s devices are compact pacemakers implanted via catheterization without requiring leads or surgical pockets, resulting in improved patient comfort and streamlined procedural workflows.
CardioMEMS
The acquisition of CardioMEMS HF System in June 2014 added a wireless pulmonary artery pressure (PAP) monitoring solution to St. Jude Medical’s offerings. This implantable device enables remote monitoring of cardiac function by measuring PAP within the pulmonary artery, facilitating enhanced management of heart failure patients.
Controversies
In December 2010, St. Jude Medical voluntarily suspended sales of its Riata and Riata ST defibrillator leads due to concerns regarding insulation abrasion. Subsequently, the FDA issued a recall for these leads in November 2011. An independent study conducted by the Population Health Research Institute in May 2013 reported a 99.8% freedom-from-all-cause insulation abrasion rate at five years for Durata and Riata ST ICD leads.
Following inspections at its Sylmar, California manufacturing site in late 2012, the FDA issued a warning letter to St. Jude Medical in January 2013 related to manufacturing procedures; however, no product safety issues were identified. The company responded with an extensive 34-page corrective action plan addressing the FDA's observations.
In 2014, MedSec Holdings Ltd disclosed a cybersecurity vulnerability affecting St. Jude pacemakers. The FDA confirmed this security concern, underscoring potential risks associated with device cybersecurity.
External links
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