Edwards Lifesciences Corporation

Despite the healthcare disruptions in several key geographies, Edwards Lifesciences delivered a good result surpassing the analyst consensus estimates in terms of revenues as well as earnings. Apart from revenue growth, the gross profit margins of the company were also healthy. In the quarter Edwards made a series of some external investments in several promising early-stage technologies. The company continues to advance enrolment in its PROGRESS pivotal trial for the moderate AS patients and also gained significant learning from its alliance pivotal trial for studying the next-generation TAVR technology, named SAPIEN X4. Geographies outside Japan and Europe grew faster this quarter. In mitral replacement, Edwards is making great progress on the enrolment of SAPIEN M3’s ENCIRCLE pivotal trial. In the U.S., the adoption of the MITRIS RESILIA valve increased in the quarter. In the Smart Recovery portfolio of the company, the adoption of ClearSight and FloTrac sensors that features RECONNECT, Edwards’ unique hypotension prediction index algorithm, remains strong. The company received approval and announced the launch of its Sapien-3 Ultra Resilia valve. Also, it received approval for its PASCAL Precision in Europe and the U.S. Edwards extends its leadership position in the U.S. with the launch of MITRIS. We provide the stock of Edwards Lifesciences with a ‘Hold’ rating and a revision in the target price.