On Wednesday, during its annual investor conference, Edwards Lifesciences Corporation (NYSE:EW) detailed its strategy for sustained long-term growth and innovations in structural heart therapies.
The company, now exclusively focused on structural heart solutions, emphasized its robust technology pipeline, financial guidance, and expanding opportunities in Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT).
CEO Bernard Zovighian projected 2025 as another strong year, highlighting expected sales growth of 8% to 10%, driven by advancements in TAVR and TMTT technologies.
Zovighian underscored the company's commitment to improving patient care through innovative products, including the SAPIEN valve platform, PASCAL, and EVOQUE. He also pointed to new areas like Structural Heart Failure and Aortic Regurgitation (AR) as key opportunities for future growth.
Major Growth Drivers
- Transcatheter Aortic Valve Replacement (TAVR) is projected to contribute $4.1 to $4.4 billion in 2025 sales, with constant currency growth of 5% to 7%.
- The Transcatheter Mitral and Tricuspid Therapies (TMTT) segment is forecasted to grow by 50% to 60% in 2025, with projected sales of $500 to $530 million.
- Technologies such as the EVOQUE tricuspid valve and the PASCAL system will play pivotal roles, alongside the anticipated CE Mark approval for SAPIEN M3 in mid-2025 and U.S. approval by the first half of 2026.
- Surgical Therapies: Edwards plans to expand the adoption of its RESILIA portfolio, which includes innovative solutions like INSPIRIS and KONECT. Emerging markets remain a focal point for delivering these technologies globally.
- Zovighian emphasized expanding Edwards' presence in structural heart failure with the recent U.S. approval of the Cordella pulmonary artery pressure sensor.
- The company anticipates stronger growth starting in 2026 and beyond, driven by its expanding range of structural heart therapies. It aims for an average annual sales growth of 10% and double-digit EPS growth: Mid-to-high single-digit growth fueled by EARLY TAVR and PROGRESS programs.
- TMTT Expansion: Expected to contribute more, aiming for $2 billion in revenue by 2030.
- New Therapies: Increased focus on areas like Structural Heart Failure and AR to drive future growth.
Financial Outlook
- Edwards projects total 2025 sales of $5.6 to $6 billion versus a consensus of $5.91 billion.
- Adjusted earnings per share are expected to range from $2.40 to $2.50 compared to the consensus of $2.44, supported by gross profit margins of 78% to 79%.
- The company reaffirmed its 2024 constant currency sales growth guidance of 8% – 10%.
Price Action: EW stock is up 4.21% at $73.15 at last check Wednesday.
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