Say hello to MassDevice +5, a bite-sized view of the top five medtech stories of the day. This feature of MassDevice.com’s coverage highlights our 5 biggest and most influential stories from the day’s news to make sure you’re up to date on the headlines that continue to shape the medical device industry.
Get this in your inbox everyday by subscribing to our newsletters.
5. Turning cynicism into healthy skepticism between clinicians and industry
A former practicing cardiologist, Boston Scientific executive Dr. Ken Stein has experienced firsthand the cynicism between clinicians and the industry. As an example, Stein cites the issue of battery longevity in cardiac implants as viewed by physicians and those on the medical device side.
Writing for the journal Circulation, Stein – now chief medical officer for rhythm management & health policy at Boston Scientific – noted that doctors believed the industry would never make extended-life batteries for medical devices because they would lose out on profits. But when Stein joined the industry 7 years ago, at Boston Scientific, he discovered that the same cynicism existed in the industry, which suspected that doctors wouldn’t want a battery with a longer life – for the same reason. Read more
4. St. Jude Medical misses with Q3 results
Shares in St. Jude Medical are under pressure pre-market today after the medical device giant posted 3rd-quarter earnings that missed expectations on Wall Street.
Little Canada, Minn.-based St. Jude posted profits of $212 million, 73¢ per share, on sales of $1.50 billion for the 3 months ended Oct. 1, for a -1.4% bottom-line dip on sales growth of 11.9% compared with Q3 2015. Read more
3. Abbott’s Q3 results beat The Street despite surprise swing to red ink on Mylan stake
Abbott beat expectations on Wall Street today with its 3rd-quarter earnings, despite putting red ink in the ledger thanks to its 13% stake in beleaguered pharma giant Mylan.
The Chicago-area healthcare giant posted losses of -$329 million, or -22¢ per share, on sales of $5.30 billion for the 3 months ended Sept. 30, for a top-line gain of 3.0% compared with Q3 2015. Read more
2. Boston Scientific wants Supreme Court to toss $309m patent loss to ICD pioneer Mirowski
Boston Scientific asked the U.S. Supreme Court this month to toss a Maryland state court decision over cardiac rhythm management device patents that awarded more than $309 million to the family of the late physician who helped invent the implantable cardioverter defibrillator, Dr. Michel Mirowski.
Marlborough, Mass.-based Boston Scientific lost the judgment in September 2014, part of a long-running patent war with Mirowski Family Ventures. A jury in Maryland’s Montgomery County Circuit Court awarded the damages to the family (Mirowski died in 1990), which originally sued Boston Scientific and its Guidant subsidiary over a secret deal with rival St. Jude Medical (NYSE:STJ). The family alleged that the deal cut Mirowski out of some $570 million in potential royalties and damages. The jury awarded MFV more than $86.5 million in damages “for royalties owed for 2002 and 2003;” another $142.6 million in damages for “the financial harm in the Indiana lawsuit;” and $80.2 million and pre-judgment interest “in connection with the defendants’ settlement with St. Jude,” according to court documents. Read more
1. Short-seller Muddy Waters floats more videos claiming cybersecurity risks with St. Jude Medical’s cardiac devices
In a release timed to coincide with St. Jude Medical‘s 3rd-quarter results announcement today, short-selling firm Muddy Waters posted a series of videos purporting to show cybersecurity vulnerabilities in the company’s cardiac rhythm management products.
Muddy Waters and research firm MedSec Holdings, which both stand to gain financially from a decline in the price of STJ shares, 1st claimed in August that St. Jude’s Merlin@home remote patient monitoring system was vulnerable to hacking. Although St. Jude immediately denied the claims as completely false, its share price initially slid some -5% and is still off about -3% from its August 24 close; STJ shares were trading at $79.30 apiece today shortly after the markets opened, down -0.2%. Read more
