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Friday, April 21, 2006 2:45:57 PM
Here are some slides from the STJ
investor presentation in February.
The first slide shows market share in the “high-voltage” segment of the cardiac rhythm management (CRM) business. This segment consists of implantable cardioverter-defibrillators (ICDs) — devices that save lives by shocking an acutely malfunctioning heart back to a stable rhythm — and is the most important segment of the CRM market in terms of profit margins. Note how STJ had been steadily taking share from #2 player, Guidant (now BSX), and almost pulled even when GDT faltered due to its recall problems. Then, GDT regained some of its lost share as worries about recalls faded. The continued separation of these lines in 1Q06 is what caused STJ’s stock to get hammered on April 5, 2006.
The second slide shows market share in the overall CRM market including both the low-voltage and high-voltage segments. The low-voltage segment consists of pacemakers and resynchronization devices that can correct chromic heartbeat abnormalities but lack an ICD’s ability to shock the heart back to a normal rhythm in an acute setting. Because STJ has historically been stronger than GDT in the low-voltage segment, the recent push in the high-voltage segment has moved STJ to a virtual tie for #2 in overall CRM share.
The third slide is an STJ projection for the overall CRM business. It shows that, even with the inevitable slowing of the growth rate for new implantations, the market for replacement devices will grow strongly as older devices wear out. All told, this market figures to enjoy a powerful tail wind for years to come as boomers move into the prime years for treatment.
The complete set of slides from STJ’s investor presentation can be found at:
http://www.sjm.com/companyinformation/investorrelations.aspx?section=WebcastsAndPresentations
investor presentation in February.
The first slide shows market share in the “high-voltage” segment of the cardiac rhythm management (CRM) business. This segment consists of implantable cardioverter-defibrillators (ICDs) — devices that save lives by shocking an acutely malfunctioning heart back to a stable rhythm — and is the most important segment of the CRM market in terms of profit margins. Note how STJ had been steadily taking share from #2 player, Guidant (now BSX), and almost pulled even when GDT faltered due to its recall problems. Then, GDT regained some of its lost share as worries about recalls faded. The continued separation of these lines in 1Q06 is what caused STJ’s stock to get hammered on April 5, 2006.
The second slide shows market share in the overall CRM market including both the low-voltage and high-voltage segments. The low-voltage segment consists of pacemakers and resynchronization devices that can correct chromic heartbeat abnormalities but lack an ICD’s ability to shock the heart back to a normal rhythm in an acute setting. Because STJ has historically been stronger than GDT in the low-voltage segment, the recent push in the high-voltage segment has moved STJ to a virtual tie for #2 in overall CRM share.
The third slide is an STJ projection for the overall CRM business. It shows that, even with the inevitable slowing of the growth rate for new implantations, the market for replacement devices will grow strongly as older devices wear out. All told, this market figures to enjoy a powerful tail wind for years to come as boomers move into the prime years for treatment.
The complete set of slides from STJ’s investor presentation can be found at:
http://www.sjm.com/companyinformation/investorrelations.aspx?section=WebcastsAndPresentations
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