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Analyzing Edwards Lifesciences’ Recent Acquisitions

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Harpoon Medical

In December 2017, Edwards Lifesciences (EW) acquired Harpoon Medical for a total consideration of $119.5 million. Additionally, Edwards Lifesciences has agreed to pay milestone payments of up to $150 million over the period of the next ten years.

Harpoon Medical is a medical technology company that has pioneered beating heart repair for degenerative mitral regurgitation. This acquisition is expected to boost Edwards Lifesciences’ portfolio of mitral and tricuspid repair products.

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Valtech Cardio

In January 2017, Edwards Lifesciences acquired Valtech Cardio for approximately $340 million. The former has also agreed to pay the latter milestone driven payments of up to $350 million over the next ten years. Valtech is a developer of a transcatheter mitral and tricuspid valve repair system.

Geographic revenue distribution

The worldwide sales of Edwards Lifesciences’ products for the treatment of cardiovascular disease are classified into four regions: United States, Europe, Japan, and the rest of the world.

The company generates a major part of its revenues in the United States. This region contributed $1.9 billion to the company’s total revenues in fiscal 2017 compared with $1.6 billion in fiscal 2016.

Product sales in Europe contributed $800 million to total revenues in fiscal 2017 compared with $745.9 million in fiscal 2016. Japan and the rest of world together contributed $714 million to total revenues of Edwards Lifesciences in fiscal 2017 compared with $583 million in fiscal 2016.

Revenue forecast

For fiscal 2018, Edwards Lifesciences is expected to report revenues of $3.8 billion, while peers Abiomed (ABMD), Merit Medical Systems (MMSI), and Teleflex (TFX) are expected to report revenues of $583.4 million, $822.5 million, and $2.4 billion, respectively, in fiscal 2018.

In the next part of the series, we’ll take a look at the financial performance of Edwards Lifesciences.

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