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<br /> Wlllj'L
<br />JAN 21 '93 09: 13 FROM ADrH N HR TO %337839 PAGE,002
<br />20 Thursday/January 2111993/Star Tribune
<br />(
<br />ili Lilly mum on rumors
<br />that Siemens is buying ,
<br />Cardiac Pacemakers unit Tony Carldeo
<br />Does Ell UUy lII4 Co. have Cardiac Edward M.a.dI, In lnalyst It PIper ,~ ~
<br />"*-aJ.a.IIK". on lhe bloc",! And is Jallni1!K., believes thaI if Lilly iSl HOW~r Cardiac can be crilicized
<br />lbe buyer lOin, 10 be Slelllelll Pace- shOllPu:!LCPI. it's because it's now or , for Ie i..; thaI posi.tiOft slip ".way, It
<br />_? never." y view is that (Lilly would I was w in keepllll up wllh the
<br />That's the ",uttlebulI. And the ru. ",II Cardiac) not because the bUlin... I tec:hnql"IY espeeially in developing
<br /> has not been profitable, but because ! the IaleSt ~neration of "tiered" ther.
<br />mon have ~n spiked with I lur. lhey ~ize lhal CPI is probably I IPy meaning lhat jolts to correct I
<br />prisin. level of detail - including I lOOUt six months or lesl lway from , t*flll heartbeat are delivered grad.
<br />date the ...Ie will 1M! Innounced. How watchi., that bUliness plunae 10 ullly, as the problem develops, rather
<br />aboul Monday? some Ipproximation of nexllo !>Olh- than in ORe big shot. Indeed, lnalysts
<br />At lhe eenter of this is the Iltest in&- H describe CPl's Ventak PRX as It
<br /> In s broader sense, MUlsch believes leasl in lhe ...me ballpark with the
<br />technoloay in heart pacin, - an im. Medtronle Ind Ventritex products,
<br />plantable device to cornet a too- that Lilly hIS become disenchanted but not.. sophisticated.
<br />rapid heartbeat, called tachyarrhyth- with several of its device businCS5e$,
<br />mia. especillly in Iiaht of recenl troubles IFill this Siemens speculation is !
<br />Cardiac Pacemakers has the only de. with portable defibrillators (the pad. true, and IF CPl's technology is half
<br /> dies used to jolt hurt attack victims). a heartbeat behind the compeuuon.
<br />vice approved by the U.S, Food and One would assume thaI CPl's recent does Ihis bode well for CPl's MlDne. !
<br />Dru, Administration for use in the recall of IS,OOO defibrillators hasn'l
<br />United States. Indeed, Card.ac IS the helped Lilly's attitude eilher. sota employe.:s? That could 1M! a !
<br />first company in the market, having most troubhng question, consideri~
<br />in 19S5 introduced a product de vel. Recall. aside, MUlsch notes Ihal Ihat Cardiac employs about I,S
<br />~ by lal.. of Pittsburgh, and its MtdlnlllIe IIle. i. weeks - m.1:>be people here.
<br />Ventak product about a year days - lway from winnin, A Perhaps all Siemens wants are the
<br />ter. approval for U.S. dislribution of its
<br /> own hiahly reaarded tachyarrhylhmia CPI patents to its r,enerations of im.
<br />The pun:hase is seen as a way for product, which in his estimation 11- plantable defibril ators, Maybe it
<br />Siemens to jump into a market that ready has captured SO pen:ent of Ihe isn'l inlerested in makins the product
<br />induslry experts believe could grow international market. Other smaller ! in MinncsOla.
<br />to S I billion in sales by the yur competitors also have taken a signifi- ,
<br />2000. And for Lilly, the ...Ie of CPI canl piece of the market away from i For what it's worth, Siemens is devel.
<br />would IlIow it to shed I business that Cardiac, he ...id, i oping its tachyarrhythmia product in
<br />some speculate is evolVing into a Solna, Sweden.
<br />stepchild Giant Siemens AG of West Germany I
<br /> entered the pacemaker market about Mark your calendars.
<br />While both Cardiac and Siemens reo six years ago when il bouShl Paeesel- I I [ z.d If 3
<br /> ,
<br />fuse to commenl on the rumors, the te. Syllellll ofSylmar, Calif., outside
<br />scenario strikes Wall Street as plausi. of Los Angeles. While Pacesetter pro-
<br />ble, vided Siemens with presence in the
<br /> hean pacin, business for too-slow
<br />"I don't think it's off the wall," ...id heanbeali, the company has been m~<:)\- <t- ~ ~e..\ \
<br />Palrlcla PHaett Lea, an analysl for slow to develop a device 10 correct a
<br />Vedor SeevItIes in Chicaao who fol. too-rapid heartbeat. DIane Brlndl, a .
<br /> .
<br />lows the Indianapolis-based Lilly. spokeswoman for Siemens Paceset.
<br />"Lilly has been undergoing a lot of tee. said Siemens now has 'Such a
<br />soul sean:hin~ They Ire now in the pruduct in clinical trials in Europe. -~\<... Co f..l t d ~
<br />process o(trylDg to focus the oraani- Even so, one analyst eSlimates that
<br />tatlon on a changins future." Siemens is alleast a year behind the
<br />lea believes that Lilly made an competition. ~Cl.J
<br />about-flce on ils medical device Until such competitors as Venlrllex \J~~ vu...w 3
<br />busine.. in just the paSI few months. Inc. and Medtronic beaan nipping at
<br />'" think they're asking whether they its heels. Cardiac - which industry f:.:l.....tk ~-t'j.
<br />can afford to have (their) attention expens estimale is generating 5300
<br />diverted by a device business that, million a yur in revenues from its
<br />.hOUah interestint. isn'l part of Ventak products and conventional
<br />eir) core," she sai . pacemakers - had the market to (l1Yl~
<br /> itself. Kachael Scherer, an analyst at
<br />Added D, Larry Smllh. at Ham. Daln Bosworth ....", said CPI repre.
<br />brechl &. Quist in New York: "II sentalives at the November meeting
<br />would not be illogical. Lilly's (devices of tho American Heart A..odallon
<br />businesses) have ~n a troubled op- told Pain representatives that the ,
<br />cnltion. n cumpany has sold 26,000 of its Ven.
<br /> tak devices since their introduction
<br /> in 1936,
<br />
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