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St. Jude Medical, Inc. Q2 2008 Earnings Call Transcript

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2008-07-16 16:48:17.0

Tags: St. Jude Medical Inc.

Question-and-Answer Session

Thank you. [Operator Instructions]. Your first question is from Bob Hopkins [ph] with Banc of America. Please go ahead.

Unidentified Analyst

Thanks [ph] and good morning and congrats on the results.

Daniel J. Starks - Chairman, President and Chief Executive Officer

Good morning Bob.

Unidentified Analyst

I have two questions. First question is since some talk in the market about your new marketing relationship you guys have with Abbot, I was wondering if you could talk a little bit about that and just more details and how it compares with what you previously had with J&J.

And then my second question is just to get it our there, I realize that don't have the benefit of [indiscernible] when you talk a lot about your previous share gains but I was just curious what did you learn in the quarter about the speed in the market what's your opinion about the speed of the overall market that has sort of suffered CapEx from market share?

Daniel J. Starks - Chairman, President and Chief Executive Officer

Bob let me take your second question first. On the state of the market, we were encouraged by the state of the market during the second quarter. If we would talk about Japan for example, we saw market growth in Japan recover a little bit over the prior two quarters. And we expect the market growth for ICDs in Japan to continue to recover modestly during the remainder of this year.

The overall dynamics were good. Our growth continued really across the Board and in all major geographies and with all major product lines So, we were encouraged that we see a healthy dynamics in the... modest but healthy dynamics in the CRM market consistent with our expectations here at the beginning of the year.

We... as we started the year suggesting that the global pace maker and ICD market will... was expected to be about 5% to 7%, we increased that expectation now to say that we think that for the full year, the growth maybe closer to something in the range of 7% to 9%. So, I would say that our experience during the second quarter was positive across the board with respect to the market dynamics.

With respect to your first question, we do have an agreement with Abbot, I would characterize it as a limited agreement. Its really something that just facilitates the discussion of St. Jude's Medical and Abbot with customers where customer want stock of both companies at the same time, about contracts covering our ICD and pacemaker products and Abbots Xience stent and angioplasty related products.

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