Analysts: Recall of St. Jude Medical's Durata not likely, despite problems
A recall of St. Jude Medical's Durata pacemaker lead is not likely and the downside of an FDA warning is already baked into the stock, Wall Street analysts tell MassDevice.com.
St. Jude Medical  (NYSE:STJ ) isn't likely to recall its next-generation Durata pacemaker leads despite a warning from the FDA, but the situation with the medical device company's flagship product could change any day, according to Wall Street analysts.
Although investors have already baked the downside from the warning into the share price, meaning some potential upside for STJ shares once the problems flagged in the watchdog agency's Form 483 warning are fixed, analysts from Leerink Swann and Jefferies & Co. told MassDevice.com today that the Durata situation is still fluid.
"The likelihood of a recall, based on what we know today, is fairly small," Leerink Swann's Danielle Antalffy told us. "Until the device actually starts failing in a real way, like what we saw with Riata, Durata is not going get pulled."