A global provider of products and technologies designed to treat advanced cardiovascular disease. The Company focuses on specific cardiovascular opportunities including heart valve disease, peripheral vascular disease and critical care technologies.
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Cardiovascular diseases is the number one cause of death world wide and is among the top three diseases in terms of health care spending in nearly every country. In the U.S. alone it is slated to affect 7 million people annually and the number is more or less same in countries around the world. Edward life systems operate in this area providing products and technology that caters to advanced cardiovascular diseases.
The company operates through five product lines namely Heart valve therapy, Critical care, Cardiac Surgery system, Vascular and other distribution products. The company is the market leader in the $1.1 billion heart valve market, which contributes about 48% of total revenue. Critical care chips in with 32% and the rest three segments contribute the rest almost equally. The company also has a spread out geographical presence with revenues coming from North America, Europe, Japan and Other International Markets in the proportion 50%, 22%, 18% and 10% respectively.
The heart valve market is undergoing a shift from mechanical valves to tissue-based valves, which strengthens Edward’s position, as the company is traditionally strong in the segment. The market for such valves is expect to grow at 7% annual, but Edward’s unique position puts it in a 9% per annum growth track as it has a first mover advantage. Also Stent products are going to revolutionalise the manner, in which cardiovascular diseases are treated, and the company with new products introduced in this segment is trying to make the most of the opportunity. The future thus looks promising for the company, as they have caught the tide at the right time and at the right place. Now all that is left is to sail the course.
Edwards Lifesciences, the global leader in advanced cardiovascular disease treatments, continues to introduce new products in the heart valve segment which contributes maximum to the company’s sales. In January 2007, the company launched two new products in the United States. The new Perimount Theon aortic valve offers clinicians, the durability and the new Myxo ETlogix annuloplasty ring is the first mitral repair product specifically designed to address myxomatous disease. The company anticipates that both of these products will contribute to growth in Heart Valve Therapy in 2007.
In addition, Edwards is planning to launch in Europe its next generation aortic valve, the Magna Ease, in May 2007. The company’s new Magna mitral valve is gaining physician acceptance in Europe and the company anticipates FDA approval in the United States by the end of 2007. This will enable Edwards to capture additional heart valve market share and then make gains.
In the first quarter results of 2007, Edwards reported a sales increase of 2.9% due to increase in sales of heart valves segment, but net profits went down by 27.7% due to increase in selling, administration, general and R&D expenses. The company expects EPS for full year to be between $2.23 and $2.31 per diluted share.
The market for artificial heart valves is large and growing. Worldwide, surgeons perform about 300,000 heart surgeries annually to repair heart valve defects, implanting more than 200,000 artificial valves per year. The total worldwide market of heart valves is between $1.1 billion and $1.2 billion at present, of which Edwards controls about 45%. This total heart valve market is expanding at about 5% annually. Considering the market demand and the number of new products being introduced by the company, the future looks bright for Edwards.