Edwards Lifesciences Corp (NYSE:EW)

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.