St. Jude shares hit new low following FDA report | On Call

November 26, 2012 by MassDevice staff

Medtech titan St. Jude Medical slides 7% after the FDA releases a report slamming the device maker's Durata pacemaker leads.

MassDevice On Call

MASSDEVICE ON CALL — Medical device maker St. Jude Medical's (NYSE:STJ) shares lost more than 10% in one day after the FDA released a report detailing potential issues with the tech giant's Durata pacemaker leads.

STJ shares on Wednesday, November 21, opened at $33.76 prior to the publication of the FDA's report. Shares tumbled 7.1% by the end of the day, closing at $31.76 and along the way notching a new 52-week low of $30.25, a 10.4% dip.

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The FDA's report detailed 11 problems with manufacturing at St. Jude's Sylar, Calf., plant, which manufactures the company's Durata pacemaker leads.

Investors are watching closely for signs of problems with the next-generation Durata leads after the St. Paul, Minn.-based medical device company recalled some of its Riata leads last year. Last month CEO Daniel Starks cautioned that St. Jude risked a warning from the federal watchdog agency over the Sylmar plant.

STJ shares regained some of their lost value, closing at $32.03 on Friday, still a 5.1% loss from Thursday's open.

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