St. Jude Medical slides on potential FDA warning, lowered outlook

October 17, 2012 by MassDevice staff

Shares of St. Jude Medical are down more than 6% today after the medical device company said it might get a warning letter from the FDA over a California plant and lowered its outlook for the rest of the year.

St. Jude Medical

St. Jude Medical's (NYSE:STJ) stock took a hit today after the medical device company said it might get a warning from the FDA over one of its California factories and lowered its outlook for the rest of the year.

The beleaguered St. Paul-based firm has had a rough go of it lately, waging a spat with a key supplier and weathering high-profile exposure for its handling of the recall of its Riata defibrillator leads. This morning St. Jude CEO Daniel Starks told analysts on a conference call that the federal watchdog agency might slap the company with a Form 483 warning letter over a cardiac rhythm management plant in Sylmar, Calif.

"It's a risk, and don't be shocked if that risk is realized," Starks said, according to Reuters.

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St. Jude also cut its outlook for the 2nd consecutive quarter, saying it now expects adjusted earnings per share of $3.42 to $3.44, down from $3.40-$3.45 previously.

STJ shares were trading at 40.24 as of about 11:30 today, down 6.3%.

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