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Edwards Lifesciences: Expected to Report Robust Revenues in 2017

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Robust rise in revenues

Edwards Lifesciences (EW) is confident that it will report total revenue growth in excess of its previous expectations of 10%–14% for 2017. The expected growth is based mainly on the rapid adoption of the company’s transcatheter therapies in the United States and in international markets. The company has also benefited from stable average selling prices around the world.

Wall Street analysts have projected Edwards Lifesciences’ 2017 revenues to be ~$3.4 billion, which is a YoY (year-over-year) growth of ~14.4%.

Its peers Boston Scientific (BSX), Zimmer Biomet Holdings (ZBH), and Abbott Laboratories (ABT) are expected to earn revenues of $9 billion, $7.8 billion, and $27.2 billion, respectively, for fiscal 2017.

Key growth driver

Edwards Lifesciences reported revenues of ~$312 million from sales of its transcatheter heart valves in the United States in 3Q17, which is a YoY growth of ~20%. The sales growth rate corresponds closely to the rate of growth of its transcatheter procedures in the United States in 3Q17. The increasing use of its best-in-class transcatheter heart valve SAPIEN 3 has been a key driver in increasing the number of transcatheter procedures in US hospitals.

Edwards Lifesciences is also witnessing a rapid uptake of its transcatheter heart valves in international markets, where penetration rates are currently low. The company witnessed a 21% YoY underlying growth in transcatheter heart valve sales in international markets in 3Q17. The company has recently launched its transcatheter heart valves in Japan and is seeing a gradual rise in demand in that market.

Edwards Lifesciences witnessed YoY growth in the low teens for its transcatheter heart valve sales in the European market in 3Q17. The company didn’t benefit significantly from the temporary recall of Boston Scientific’s Lotus range of heart valves from the European market.

Edwards Lifesciences accounts for 0.67% of the iShares Russell Mid-Cap Growth ETF’s (IWP) total portfolio holdings.

In the next part of this series, we’ll take a look at margin growth projections for Edwards Lifesciences for 2017.

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