News | September 11, 2012

St. Jude Medical Realigns Electrophysiology Business Units

September 11, 2012 — St. Jude Medical Inc. announced the realignment of its product divisions into two new operating units: the Implantable Electronic Systems Division (IESD) and the Cardiovascular and Ablation Technologies Division (CATD). The company will also centralize several support functions including information technology, human resources, legal, business development and many marketing functions. The company’s U.S. and international divisions, which are focused on product commercialization, will continue serving customers based on existing call points and specialties.

Under the leadership of Eric Fain, the IESD will be comprised of the former Cardiac Rhythm Management Division and the former Neuromodulation Division. Under the leadership of Frank Callaghan, the CATD will be comprised of the former Atrial Fibrillation Division and the former Cardiovascular Division. Fain and Callaghan will report to Group President Michael Rousseau.

As part of the reorganization, three additional executive officers have been named: Donald Zurbay, Rachel Ellingson and Kathleen Chester. Donald Zurbay is now vice president, finance and chief financial officer, reporting to John Heinmiller, who is taking on an expanded role as executive vice president, overseeing the centralization of the IT, HR, legal and business development functions. Rachel Ellingson has been named vice president, corporate relations, as Angela Craig assumes additional responsibilities as vice president, global human resources. Kathleen Chester has been named to a newly created role of vice president, global regulatory.

“The reorganization we have announced today is part of a comprehensive plan to accelerate our growth,” said Daniel J. Starks, chairman, president and CEO of St. Jude Medical. “We are focused on reducing costs, leveraging economies of scale, maintaining the highest level of quality and funding our entire portfolio of new growth drivers.”

The company estimates that as a result of the organizational changes announced, it will be able to reduce pre-tax operating expenses by approximately $50 to $60 million annually beginning in 2013. The company is providing support to the approximately 300 employees whose jobs have been eliminated as a result of the recent announcement.

For more information: www.sjm.com

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