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.
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.
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.