St. Jude Battling Supplier Over Durata Insulation AorTech International plc, a Scottish company tha

St. Jude Battling Supplier Over Durata Insulation
AorTech International plc, a Scottish company that manufactures insulation for St. Jude Medical Inc.’s Durata lead wires, is accusing St. Jude of breaching their contract. AorTech has served St. Jude a rectification notice that accuses the company of material breaches. AorTech is giving St. Jude 30 days to correct the breaches, but company officials are not convinced the breaches can be corrected. If AorTech is not satisfied after 30 days, the company can end its relationship with St. Jude.

AorTech specializes in biostable implantable polymers used in cardiology, orthopedic and urological applications. Products include pacing leads, cardiac cannulas, neurostimulation devices, stents and implantable sensor technology. St. Jude is AorTech’s largest existing contract.

“The allegations raised by AorTech are without merit,” said a St. Jude company spokesperson. “The rectification notice St. Jude Medical has received from AorTech is based on inaccuracies and misrepresentations, and we will vigorously defend against these claims. St. Jude Medical has a sufficient supply of inventory from AorTech to continue manufacturing Optim-insulated leads and we have adopted other contingencies that will prevent any supply disruptions of Optim in the future. The manufacture and supply of our Optim-insulated leads will not be interrupted.”

AorTech officials acknowledge that St. Jude still would be able to manufacture polymers if their relationship ends, but assert that the company no longer will have rights to AorTech’s intellectual property and “know-how” to make proprietary AorTech materials. Meanwhile, in September AorTech informed shareholders that it had failed to attract a buyer for the company but received offers for various segments of its business, including its polymer business. In a letter to shareholders, however, the company said there was “no guarantee the transaction can be consummated.”

Headquartered in St. Paul, Minn., St. Jude manufactures medical devices across a range of applications, mostly cardiovascular.