Medtronic to Halt Sale of Defibrillation Leads

Medical device maker Medtronic announced early Monday morning it is voluntarily halting the sale of its Sprint Fidelis family of defibrillation leads, in consultation with the FDA. The leads, which connect defibrillator implants, responsible for jolting a patient's heart back into a proper rhythm during bouts of Arrhythmia, connect the implanted device directly to a patient's heart. But the leads, which Medtronic has used regularly since 2004, come with the risk of fracturing, and either ceasing to work effectively, or inappropriately jolting a patient's heart. The leads have cause as many as five deaths as a result of fracturing. It is believed 235,000 people currently have the faulty leads. For those who already have the leads, it is considered more dangerous to have them removed than to leave them implanted. Such patients are asked to consult with their physician immediately. Medtronic's decision to cease using Sprint Fidelis leads may cost the company millions of dollars in legal fees, as well as cut into its profits in the $6 billion a year defibrillator device market, of which it controls nearly 50%. Medtronic shares are up nearly 16% over the past year; they were down slightly on Friday.

Sources: Press release, Wall Street Journal, Reuters, New York Times, MarketWatch
Commentary: Medtronic, Wyeth, & Pfizer Plan On Revenue Growth in China • Medtronic Sales Fall Short • Jim Cramer on MDT
Stocks/ETFs to watch: MDT. Competitors: BSX, STJ. ETFs: IHI, IYH, XLV
Earnings call transcript: Medtronic F1Q08 (Qtr End 7/27/07)
Related: Wikipedia on defibrillator, Definition of Arrhythmia

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