On Jun 26, we issued an updated research report on medical
Edwards Lifesciences Corporation
). Edwards reported a mixed first-quarter 2014 registering an
earnings beat and a revenues miss.
Adjusted earnings per share of 76 cents inched up 2.7% year over
year, reflecting a beat of 11.8% over the Zacks Consensus Estimate.
Sales of $522.4 million were up 5.2% but missed the Zacks Consensus
Estimate of $524 million.
As per expectation, on Jun 17, Edwards Lifesciences received the
U.S. Food and Drug Administration (FDA) approval for its second
generation SAPIEN XT transcatheter aortic heart valve in both
inoperable and high risk patients. We believe the latest sanction
for SAPIEN XT, received within a short span of
) CoreValve gaining the FDA approval, should prove beneficial for
To date, Edwards Lifesciences has launched several new products,
demonstrated strong clinical data and made significant progress on
various key developments indicating sustainable future growth.
The company has managed to be in the limelight since the
beginning of 2014. The company kick-started the year with the
receipt of CE mark for its SAPIEN 3 in January and SAPIEN XT in
February followed by the INTUITY Elite Valve System winning the
same in April. With this, Edwards Lifesciences has become the only
company in Europe to have received CE Mark for valve-in-valve
procedures using the SAPIEN XT valve, providing minimally invasive
treatment options to patients in need of surgical mitral or aortic
valve replacement. In addition, the enrollmentof 1,000 intermediate
risk patients in the U.S. SAPIEN 3 trial is on track and is
expected to be completed by the end of this year.
In addition, unlike in the past several quarters, the company
recorded healthy performance in Europe, especially within the THV
However, we are wary about the earlier-than-expected FDA
approval of Medtronic's less-invasive heart valve - CoreValve,
received in Jan 2014. Moving on, a tough European economic climate
and a fiercely competitive landscape remain as potent
Other Stocks to Consider
While Edwards Lifesciences carries a Zacks Rank #3 (Hold), some
notable stocks in the Medical Instruments sector are
Globus Medical, Inc.
). Both the stocks hold a Zacks Rank #2 (Buy).
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