EW Poised to Carve Out More Prosthetic Heart Valve Market Share



SHV sales overview

Edwards Lifesciences operates in three business segments: the Transcatheter Heart Valve (or THV) Therapy segment, the Surgical Heart Valve (or SHV) Therapy segment, and the Critical Care segment. The company’s SHV Therapy segment contributed approximately 26% to the company’s total sales in 2Q16. The segment reported a decline of around 3% in 2Q16 due to weak sales of surgical mitral valves as a result of production problems. However, the surgical aortic valves witnessed solid growth.

Some of the major competitors of Edwards Lifesciences in the SHV Therapy market include Medtronic (MDT), St. Jude Medical (STJ), and Boston Scientific (BSX). The iShares Russell Mid-Cap Growth ETF (IWP) holds approximately 0.88% of its total holdings in Edwards Lifesciences.

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EW’s Intuity Elite heart valve

The company’s Intuity Elite heart valve is a pericardial heart valve, which is a valve built with a tough bovine tissue sac. The valve has a strong market in Europe and Japan where it saw strong sales growth in 2Q16. With a strong track record of sales in Europe, the company expects the device to build momentum in the US as well. The device is used to perform minimally invasive aortic valve replacement surgeries in heart patients. As per the company’s clinical study results carried out for one year, the device has significant patient benefits including decreased mortality and shorter hospital stays.

The prosthetic heart valve market is expected to be worth $4.8 billion globally by 2020. Edwards Lifesciences expects to capture significant market share with its established leading position in the market and with the recent approval of its Intuitive Elite heart valve, which will help expand the company’s market share in the United States.

Next, let’s look at the company’s valuation as compared to its peers.


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