GDT Guidant Corp

Guidant Corporation (NYSE:GDT) said today that it is informing physicians about two separate failure modes, each occurring at a low rate, being monitored within the INSIGNIA(R) and NEXUS(R) families of Guidant implantable pacemakers. Physicians should use this information to decide how best to treat their patients. These failure modes may result in one or more of the following device behaviors: -- Intermittent or permanent loss of pacing output without warning -- Intermittent or permanent loss of telemetry -- Appearance of a reset warning message upon interrogation The clinical behaviors associated with these failure modes can result in serious health complications. There have been no reported deaths resulting from these failure modes. Loss of pacing output associated with these failure modes has resulted in syncope as well as presyncope requiring hospitalization. For the first failure mode, as of September 6, 2005, Guidant has confirmed thirty-six (36) failures out of 49,500 implanted devices (0.073%). Seven (7) of these devices exhibited no output during the implant procedures. For devices successfully implanted, the majority of failures occurred early in life, with a mean implant time of seven (7) months. This failure mode demonstrates a failure rate that decreases with implant time. No failures have been reported beyond twenty-two (22) months of service. Guidant has received three (3) reports of syncope, and six (6) reports of bradycardia or heart block associated with this failure mode which required emergency hospitalization. One device was determined to have failed briefly and resumed functioning with no indication to the physician detectable during routine follow-up. Guidant's modeling based on field experience and statistical analysis, predicts the failure rate for the active device population of 41,000 to be between 0.017% to 0.037% over the remaining device lifetime, or approximately seven (7) to fifteen (15) additional failures. An estimated 24,000 are active in the United States. Root cause has been identified as foreign material within a crystal timing component. The supplier of the crystal timing component used in this subset has eliminated foreign material within the crystal chamber, and no such failures have been observed in any devices shipped after March 12, 2004. The United States Food and Drug Administration (FDA) has determined this communication action to be a recall. Physicians should consider the projected low and declining failure rate in addition to the unique needs of individual patients in their medical decisions regarding patient management. Guidant recommends normal device monitoring, as per device labeling. As always, Guidant advises patients to seek medical attention immediately if they experience syncope or lightheadedness. As of September 6, 2005, sixteen (16) failures associated with a second failure mode have been confirmed out of 341,000 INSIGNIA and NEXUS devices distributed worldwide (0.0047%). For all sixteen devices, a "no output" condition was exhibited at the implant procedure or pre-implant testing. Guidant has received one (1) report of a pacemaker-dependent patient experiencing syncope and resuscitated cardiac arrest that occurred in association with loss of pacing output during an elective pulse generator replacement procedure. Root cause analysis is ongoing; a specific root cause for this observation has not yet been determined. An estimated 145,000 of these devices are active in the United States. The United States Food and Drug Administration (FDA) may determine this communication action to be a recall. Guidant recommends verifying pacemaker operation in the packaging prior to the implant procedure. Devices exhibiting intermittent or permanent loss of output and/or telemetry should not be implanted. Physicians should consider both the very low occurrence rate and that no failures have been observed after successful confirmation of pacing at implant, in addition to the unique needs of individual patients, in their medical decisions regarding patient management. The following model numbers are affected by this communication(a): -0- *T Guidant Pacemakers Guidant Intermedics Pacemakers ---------------------------------------------------------------------- Device Family Model Numbers Device Family Model Numbers ---------------------------------------------------------------------- INSIGNIA Entra SSI 0484, 0485 NEXUS Entra SSI 1325, 1326 ---------------------------------------------------------------------- INSIGNIA Entra DDD 0985, 0986 NEXUS Entra DDD 1425, 1426 ---------------------------------------------------------------------- INSIGNIA Entra SR 1195, 1198 NEXUS Entra SR 1395, 1398 ---------------------------------------------------------------------- INSIGNIA Entra DR 1294, 1295, 1296 NEXUS Entra DR 1466, 1494, 1495 ---------------------------------------------------------------------- INSIGNIA Ultra SR 1190 NEXUS Ultra SR 1390 ---------------------------------------------------------------------- INSIGNIA Ultra DR 1290, 1291 NEXUS Ultra DR 1490, 1491 ---------------------------------------------------------------------- INSIGNIA Plus SR 1194 NEXUS Plus SR 1394 ---------------------------------------------------------------------- INSIGNIA Plus DR 1297, 1298 NEXUS Plus DR 1467, 1468 ---------------------------------------------------------------------- INSIGNIA AVT SSI 482 NEXUS AVT SSI 1328 ---------------------------------------------------------------------- INSIGNIA AVT VDD 882 NEXUS AVT VDD 1428 ---------------------------------------------------------------------- INSIGNIA AVT DDD 982 NEXUS AVT DDD 1432 ---------------------------------------------------------------------- INSIGNIA AVT SR 1192 NEXUS AVT SR 1392 ---------------------------------------------------------------------- INSIGNIA AVT DR 1292 NEXUS AVT DR 1492 ---------------------------------------------------------------------- (a) Not all models are available in all geographies. *T Additional information about this potential issue is available for physicians and patients at 1-866-GUIDANT (1-866-484-3268) (24/7) and http://www.guidant.com/physician_communications/. This release includes forward-looking statements concerning the course of developments with respect to the affected products. These statements are based on assumptions about many important factors, including continuing developments with respect to adverse event rates, regulatory agency actions, and other factors identified on Exhibit 99 to the company's most recent 10-Q. Actual results may differ materially. The company does not undertake to update its forward-looking statements.