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What Drove Edwards Lifesciences’ Stock Performance?

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Apr. 14 2016, Published 8:55 a.m. ET

Company overview

Edwards Lifesciences (EW), headquartered in Irvine, California, is one of the leading companies that manufacture cardiovascular devices in the United States. The company manufactures artificial heart valves and monitoring devices for the treatment of advanced cardiovascular diseases.

EW has a strong and leading portfolio of heart valve therapies consisting of structural heart valve therapy as well as transcatheter heart valve therapy.

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Stock performance

Edwards Lifesciences was trading at $106.05 as of April 11, 2016. It has a 50-day moving average of $90.79 and a 200-day moving average of $81.4.

As of April 11, Edwards Lifesciences’ stock was trading ~72.8% above its 52-week low and ~1.7% below its 52-week high. The company’s year-to-date returns are ~34%. Its stock price has jumped ~20% over the last month.

Recently, EW’s stock price rose drastically due to the data released about its Sapien 3 clinical trials. The data indicated the superiority of TAVR (transcatheter aortic valve replacement) therapy over open-heart surgery for intermediate risk patients.

The efficacy of the Sapien valve was also reported to be equivalent to open-heart surgery, and the patients who received Sapien XT transfemorally demonstrated even better results, with lower mortality and stroke rates. On April 4, 2016, EW’s stock price rose by ~17.4% following the Sapien 3 clinical trial data release.

Peer comparison

As of April 11, 2016, Edwards Lifesciences has returned ~47% over the last 12 months. It outperformed the market represented by the S&P 500 Index as well as its industry peers.

Edwards Lifesciences’ major competitors Medtronic (MDT), St. Jude Medical (STJ), and Boston Scientific (BSX) have generated returns of approximately -1.9%, -15%, and 8.5%, respectively, over the last 12 months. The Health Care Select Sector SPDR ETF (XLV) has ~4.5% of its total holdings in Edwards Lifesciences.

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