Edwards Lifesciences’ innovation strategy
Edwards Lifesciences (EW) has witnessed steady growth over the years and gained a significant share of the market in recent quarters. The company is a leading manufacturer of artificial heart valves and has introduced a number of new products recently. The TAVR (transcatheter aortic valve replacement) market is the company’s major opportunity area and the company is focused on growing through product advancements and innovation. Edwards Lifesciences’ R&D investments were around $113 million in 2Q16, which represents a YoY (year-over-year) increase of around 16%. In 2Q16, the company invested mostly in various transcatheter aortic and mitral valve programs.
Peers Medtronic (MDT), St. Jude Medical (STJ), and Boston Scientific (BSX) invested approximately 7.8%, 12.3%, and 10.4% of their total revenues, respectively, toward R&D in their recent quarters. The First Trust Health Care AlphaDEX Fund (FXH) invests approximately 2.6% of its total holdings in Edwards Lifesciences.
Recent product approvals
On September 29, 2016, Edwards Lifesciences received CE Mark for the company’s new resilient aortic heart valve, Inspiris Resilia. Resilia tissue is a breakthrough advancement in tissue technology that has been under development for over a decade. The commercial release of the product in Europe is expected to in 4Q16 with a full launch in 1Q17.
According to Edwards Lifesciences, “The INSPIRIS valve creates a new class of surgical valves and includes key patient-focused innovations, such as the resilient tissue and the VFit technology, to advance the treatment of patients with heart valve disease. In partnership with surgeons, Edwards is committed to developing differentiating technologies that set a new standard for surgical heart valves.”
On September 19, 2016, Edwards Lifesciences received expanded indication in Europe for the use of its Sapien 3 Transcatheter Heart Valve in intermediate risk patients. The device received expanded indication for its use in intermediate-risk patients in the United States by the FDA in August 2016. For detail, read Edwards Lifesciences Capitalizes on Valve Replacement Market.
Next, let’s discuss the company’s latest valuation.