According to information from Wall Street analysts, a recall of the Durata pacemaker by St. Jude Medical is unlikely. In addition, the recent warning from the United States Food and Drug Administration (FDA) is also incorporated into existing stock prices, according to analysts.
While the price of the recent FDA warning may already be reflected in current stock prices, there is the potential for a price increase once St. Jude Medical resolves its FDA Form 483 warning issues.
Two analysts shared similar feelings with MassDevice.com over the issues at St. Jude Medical. Danielle Antalffy is an analyst at Leerink Swann. In statements to the press, she said, "The likelihood of a recall, based on what we know today, is fairly small. Until the device actually starts failing in a real way, like what we saw with Riata, Durata is not going get pulled."
Raj Denhoy, an analyst at Jeffries, agreed. In remarks to the press, Denhoy said, "If one's being intellectually honest, the probability is still quite low, given what we know," agreed Jefferies analyst Raj Denhoy. "There are a lot of reasons to believe we could see something, some problem, down the road, but clinically the product is still performing quite well. The question is, will the FDA do something despite the clinical data being quite good?