Medtronic wire recall causes drop in company revenue as lawsuits mount
Medtronic, Inc. announced a significant drop in sales for their defibrillator business during the third quarter following the recent Sprint Fidelis recall. The company estimates that they have already lost about $130 million in sales as a result of the Medtronic wire recall, and they also face thousands of potential lawsuits from individuals who had one of the defective leads used to connect a defibrillator to their heart.
>>INFORMATION: Medtronic wire recall
On October 15, 2007, Medtronics announced that they were removing their Sprint Fidelis defibrillator lead from the market. The wire was recalled as a result of a design defect which could allow the lead to break or erode. While all individuals who were given one of the Sprint Fidelis leads could be at risk of serious and life threatening injuries, younger individuals or those who are more active could have an increased failure rate due to fractures caused by flexing and bending of the wire.
Medtronic Lead Recall
- Model 6930
- Model 6931
- Model 6948
- Model 6949
At the time the Medtronic wire recall was announced, the company estimated that their leads had fractured at a rate of 2.3% at 30 months. During the conference call yesterday afternoon, the company declined to update any estimates of the failure rate. Based on the initial estimates, between 4,000 and 5,000 people will experience a lead failure. However, many experts believe that as more people have the leads for longer periods of time, the failure rate could increase drastically, impacting thousands more.
Medtronic, Inc. is the largest manufacturer of heart-rhythm devices in the world. It generates over $12.3 billion in annual sales, and their division which includes defibrillator related sales account for about 40%. Executives estimated that Medtronics defibrillator business experienced a 16% drop in sales during their most recent quarter, despite the fact that the Sprint Fidelis recall only impacted the last two weeks of the 13 week period.
The Sprint Fidelis wire was introduced in September 2004 as the thinnest defibrillator lead available. Although it was used with most Medtronic defibrillators sold since then, it was also be used with other defibrillators manufactured by St. Jude, Guidant or Boston Scientific, as the doctors can mix and match the leads and defibrillators. Since the Medtronic lead recall, many doctors have turned to other leads manufactured by different companies, instead of reverting to the older Medtronic Sprint Quattro lead.
MEDTRONIC RECALL LAWSUITS
Medtronic wire recall lawsuits are being pursued by thousands of individuals who had one of the defective Sprint Fidelis leads implanted with their defibrillator. During the quarterly conference call with investors, the company indicated that it was too soon to estimate the financial impact the Sprint Fidelis lawsuits will have on the company.
The lawyers at Saiontz, Kirk & Miles, P.A. represent individuals nationwide who have received a Sprint Fidelis lead. The Medtronic wire lawsuits are being pursued to obtain compensation for the physical and emotional injuries caused by the manufacturer’s negligence in providing a dangerous and defective device. To obtain a claim evaluation, request a free consultation with our Medtronic lawyers.
