Concern Over St. Jude’s Heart Device Sends Stock Plunging (STJ)
Medical company, St. Jude Medical, Inc.(STJ) saw a sharp decline Tuesday, after concern with recent heart device product.
The company’s stock fell 12% after news that major flaws were found in their testing and oversight of a heart device, and how inspections are done on its products.
The FDA has been focusing on one of the company’s products called Durata, which is a electrial wite that connects an implanted defibrillator to a patients heart. In this product, the company uses a material called Optim, but now the FDA is questioning the company about the quality and effectiveness of the material used.
The company has been in the spotlight for a few months since the failure of a product called Riata. However, STJ is insisting that Durata is a safe product, going against FDA recommendation that patients wait until the product’s safety is further proven.
St. Jude shares were down $4.36, or -12.27% during Wednesday afternoon trading. The stock is down 8.6% YTD.
The Bottom Line
Shares of St.Jude Medical, Inc (STJ) have a 2.58% dividend yield, based on last night’s closing stock price of $35.71. The stock has technical support in the $27-$28 price area. If the shares can firm up, we see overhead resistance around the $36 price level.
St. Jude Medical, Inc.(STJ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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