Edwards Lifesciences (EW) is focused on expanding and strengthening its core capabilities in the areas of structural heart and critical care. The company invests ~15.0% of its total revenues toward its R&D (research and development) initiatives. These investments yield long-term organic growth for the company.
The chart below shows adjusted sales generated by Edwards Lifesciences since 2008. The company has had consistently improved sales over the last decade.
Edwards Lifesciences’ peers Medtronic (MDT), Boston Scientific (BSX), and Abbott Laboratories (ABT) made annual R&D investments of approximately 7.5%, 11.0%, and 7.0%, respectively, in their recent fiscal years.
Recent areas of innovation
US healthcare industry has witnessed disruption in the last few years, featuring a shift toward value-based care. The industry has been focused on providing products and solutions that provide better value to healthcare facilities and patients.
Digital innovation, predictive analytics, and big data have provided the necessary innovation, improving the standard of care and procedure efficiency. Edwards Lifesciences has also been focused on improving its offerings and has had several recent innovative product launches.
The company has a robust product pipeline, including Inspiris Resilia, the Sapien family of products, and Konect. For more information on these devices, please read Edwards Lifesciences: Growth Drivers, Surgical Aortic Valve Space.
The SPDR S&P 500 ETF (SPY) holds ~0.10% of its portfolio in Edwards Lifesciences stock.