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The Edwards Lifesciences Story: 2017 and Beyond

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Part 4
The Edwards Lifesciences Story: 2017 and Beyond PART 4 OF 10

Edwards Lifesciences Riding High on TAVR Sales Growth and Future Opportunities

2016 TAVR performance

Edwards Lifesciences (EW) reported strong TAVR (transcatheter aortic valve replacement) sales in 2016 through calendar 3Q16 (ending September 30, 2016). TAVR products make up part of Edwards Lifesciences THV (transcatheter heart valve) segment.

The company expects to register THV segment sales in the range of $415 million–$430 million in 4Q16, as compared to THV segment sales of around $410 million in 3Q16. For 2016, Edwards Lifesciences is expected to report sales growth of more than 30%, as compared the company’s THV sales growth of around 25.1% in 2015.

Edwards Lifesciences Riding High on TAVR Sales Growth and Future Opportunities

Potential opportunity in TAVR market

Sapien 3 valves have created a huge opportunity for Edwards Lifesciences to penetrate the $2.5-billion TAVR market, which is expected to grow by around $5 billion by 2021. Sapien 3 received an expanded indication for use of among intermediate risk patients in August 2016 in the US and in September 2016 in Europe. It’s currently the only TAVR product on the market approved for intermediate risk patients.

Medtronic’s (MDT) CoreValve is a competing product that is now under trial for use in intermediate risk patients, however, and Boston Scientific (BSX) and St. Jude Medical (STJ) will be future potential competitors in the TAVR market.

To participate in the growth potential of Edwards Lifesciences, investors can invest in iShares Russell 1000 Growth ETF (IWF). IWF has 0.18% of its total holdings in EW.

Maintaining a leadership position

EW aims to maintain its leadership position and capture a higher market share in the TAVR market by following the three-pronged strategy of increasing awareness, indication expansion, and technology advancement. Notably, the majority of EW’s R&D (research and development) expenditure is being spent on TAVR product development and innovation.

EW is primarily focused on harnessing ssAs (severe symptomatic aortic stenosis) opportunities. A severe aortic stenosis condition, ssAs is accompanied by symptoms like fatigue, chest pain, shortness of breath etcetera. Aortic stenosis, in general, is a condition in which blood flow is restricted due to the narrowing of the opening of the aortic valve. The ssAs prevalence pool is estimated to be growing every year, and with low treatment rates. The company is also looking at a long-term study for the treatment of patients with severe asymptomatic aortic stenosis.

Edwards Lifesciences’ THV sales in 2016 have been primarily driven by the expanded indication of its Sapien 3 valves. For more on EW’s Sapien 3 valves, check out Market Realist’s “Edwards Lifesciences Capitalizes on Valve Replacement Market.”

Next, let’s look at Edwards’ THV product pipeline and growth estimates.

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