"St. Jude Medical stands behind the security and safety of our devices as confirmed by independent third parties and supported through our regulatory submissions", the Little Canada-based company said Friday.
St. Jude Medical (STJ): Indexiq Advisors added new position in St. Jude Medical during the most recent quarter end. For the next 5 years, St. Jude Medical, Inc.is expecting Growth of 10.92% per annum, whereas in the past 5 years the growth was 4.25% per annum. Until past year, research into internet of things security was in many cases thwarted by copyright law - it's now legal under a temporary exemption that might not be renewed. A representative for Abbott had no comment. St. Jude Medical makes up approx 0.06% of Charter Trust Co's portfolio. The average forecast of sales for the year ending Dec 16 is $6.05B by 22 analysts.
In its report, Muddy Waters said it had seen demonstrations of cyberattacks against St. Jude devices, citing the work of cybersecurity startup MedSec. Still, the company's stock price dipped 5 percent Thursday and was trading in negative territory Friday. We make no recommendation that the securities of the companies profiled or discussed in on our website should be purchased, sold or held by investors. The two attack vectors mentioned include a battery draining attack and one that could crash a pacemaker, but both require the attacker to get access to the device's home control unit for about an hour. Most hacks are criminal in nature, driven by profit motive.
The Bloomberg article mentioned that there have been no publicly documented cases of hackers getting into medical devices to cause patient harm. This dividend amount is equal to the dividend paid during the first and second quarters of 2016 and brings the total dividend declared for the year to $0.93 per share. Efforts to drive down a Singapore commodity trader, Olam International Ltd., blew up when a state-owned investment firm took control of the company.
Medical device hacking has been demonstrated for years now, so much so that's it's nearly considered old hat. Former U.S. Vice President Dick Cheney famously had the WiFi on his pacemaker turned off in 2007 precisely to prevent such an attack. Since then, there have been a slew of reports about dangers in other products, from insulin pumps to hospital monitors to surgical equipment. Abbot Laboratories made a $25 billion bid for St. Jude back in April. The share price is now at 52.28% for the past six months.
St. Jude's stock plummeted as much as 8% on Thursday.
MedSec Chief Executive Justine Bone told Reuters that her firm chose to not adhere to those practices.
Reuters was not able to confirm the allegations by Block and MedSec, a firm founded 18 months ago focusing on cyber vulnerabilities in the healthcare industry.
Muddy Waters' claims are based on research by Miami-based MedSec, whose CEO Justine Bone told CNBC that she made the unconventional decision to go to Muddy Waters instead of St. Jude with the findings because St. Jude had a history of not responding to security concerns. "That manufacturer was St. Jude", she said. "And they felt that it's very important for users of these devices-for patients-to know about the risks". Bloomberg News reported that if the claims against St. Jude devices are proven, it could derail Abbott's plan to buy St. Jude or lead to a renegotiation of the sizable deal.