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Insert Customer Name City, ST. ABBOTT VASCULAR & ST. JUDE MEDICAL. CARDIOVASCULAR CO-PROMTION. Value Summary. Abbott and St. Jude Medical are pleased to introduce a collaborative partnership providing our mutual customers with added purchasing incentives.
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Insert Customer Name City, ST ABBOTT VASCULAR & ST. JUDE MEDICAL CARDIOVASCULAR CO-PROMTION
Value Summary • Abbott and St. Jude Medical are pleased to introduce a collaborative partnership providing our mutual customers with added purchasing incentives. - By aligning our sales efforts and key products, we will provide customers with additional value upon achievement of our collective product performance targets. - In order to participate, customers will need to meet minimum purchase requirements of Abbott Vascular Coronary products and St. Jude Medical CRM products over the two (2) year program period. - Each quarter, upon meeting benchmark purchase requirements, customers will receive a 3% rebate for St. Jude net contract purchases and a 3% rebate for Abbott net contract purchases. Customer rebates will be paid upon achievement within, and across, both companies product categories.
An Ongoing Tradition of Innovation • Founded: 1976 • Location: St. Paul, Minnesota • Product: Mechanical Heart Valve • 2007 Divisions: 6 • Worldwide Employees: 12,000+ • Countries: 130 + • St. Jude Medical develops medical technology and services that focus on putting more control into the hands of those who treat cardiac, neurological and chronic pain patients worldwide. The company is dedicated to advancing the practice of medicine by reducing risk wherever possible and contributing to successful outcomes for every patient. Headquartered in St. Paul, Minn., St. Jude Medical employs more than 12,000 people worldwide and has five major focus areas that include: cardiac rhythm management, atrial fibrillation, cardiac surgery, cardiology and neuromodulation.
Who is St. Jude Medical? • An innovator with a 30+ year history of leadership in medical technology quality and design • #1 or #2 market share in nearly all of our segments • Leader among our peer group in: - R&D investment as a percentage of sales (Over the last 24 months) • STJ stock performance since Q3 1998 compared to MDT and BSX - During this period, only three companies in the S&P 500 have performed better than STJ (Apple, Adobe, Apache)
Recognition • Named #1 in 2007 and 2008 as Fortune magazine’s “Most Admired Medical and other Precision Equipment Company.” • In 2007, St. Jude Medical was ranked by BusinessWeek as one of the top 50 companies to launch a career. • In 2006, St. Jude Medical was named as one of “America’s Best Managed Companies” in Forbesmagazine. • In 2005, St. Jude Medical was named the “Medical Device Manufacturer of the Year” by Medical Device & Diagnostic Industry magazine. • In 2003 and 2004 St. Jude Medical was listed as one of the “Top 50 Managed Companies” by BusinessWeek.
Leadership In Product Innovation • Over 40 new products released in the last 2 years
35 consecutive years of dividend increases ABBOTT VASCULARBenefits from Abbott Labs Financial Strength • A leading, broad-based global health care company • 65,000 employees around the world • 2006 sales: $22.5 billion • Fortune 100 corporation
Pharma Devices Diagnostics ABBOTT VASCULAR Broad-Based Business Model & Strategic Reshaping Nutrition
VOYAGER™Coronary Dilatation Catheter MULTI-LINK VISION®Coronary Stent System POWERSAIL®Coronary Dilatation Catheter GUIDE WIRES CHRONICALLY STENOSED LESIONS FRONTLINE ACCESS EXTRA SUPPORT FRONTLINE WORKHORSE ABBOTT VASCULARBroad Cardiovascular Product Portfolio ASAHI TORNUS™Catheter
DISCOVER THE XIENCE BEHIND Proven Design: Deliverability, Efficacy & Safety Thin struts for less injury1 .0032” strut thickness2 Clinically proven MULTI-LINK VISION® CoCr stent World’s #1 metallic stent3 Superb deliverability Low balloon outside the stent to reduce injury4 Controlled release, low dose of everolimus Cytostatic drug Biocompatible fluorinated copolymer Thin, durable Design goal: lowest drug load, thinnest struts, and excellent polymer integrity for rapid healing.1 1 – 14 day rabbit iliac study. Data on file at Abbott Vascular, 2 - Manufacturer-reported strut thickness. Tests performed by and data on file at Abbott Vascular, 3 – Based on market share data USMO December 2007, 4 - Carter A.J., et al. “Experimental Evaluation of a Short Transitional Edge Protection Balloon for Intracoronary Stent Deployment. CCI, 51:112-110 (2000).
DISCOVER THE XIENCE BEHIND The SPIRIT II and SPIRIT III Clinical Trials Versus Taxus XIENCE V is the only DES with proven superiority versus another DES in 2 head-to-head multi-center clinical trials - SPIRIT II: Primary Endpoint In-Stent Late Loss at 6 months - SPIRIT III: Primary Endpoint In-segment Late Loss at 8 months Consistent Clinical Results – Significant reductions in MACE and TLR in SPIRIT II and SPIRIT III at 2 years SPIRIT II: 40% reduction in MACE and 44% reduction in ID-TLR - SPIRIT III: 44% reduction in MACE and 39% reduction in ID-TLR Long term safety proven - Low rates of late and very late ARC def/prob ST - Numerically lower rates of cardiac death & MI Source: SPIRIT II 2 year Results, Professor Serruys, ACC-08, SPIRIT III 2 year Results, Gregg Stone, EuroPCR 2008
Program Mechanics CARDIOVASCULAR CO-MARKETING PROGRAM
Program Mechanics • Customers maintain separate/confidential purchase agreements with both Abbott and SJM • Product categories limited to: • Abbott: Coronary Products • SJM: LV (Pacemaker) and HV (ICD) products • Rebates provided for performance achievement as specified within co-marketing addendums with both Abbott and SJM • Rebates provided only for achievement of both company product categories
Co-marketing Process Locally negotiated and confidential supplier agreement with SJM for CRM products Locally negotiated and confidential supplier agreement with Abbott for coronary products Mutually agreeable performance criteria within Co-marketing Addendums Performance rebates from both SJM and ABBOTT payable each quarter based on minimum criteria achievements (Coronary & CRM)
Account local dynamics • To be completed by local SJM and Abbott account stakeholders - Financial Summary Opportunity - Action steps