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Edwards Lifesciences Makes Investments in Heart Failure Space

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Edwards Lifesciences Corporation (EW - Free Report) recently announced that it has closed two strategic acquisitions within the space of structural heart disease and critical care monitoring.

The first deal includes the purchase of Corvia Medical Inc. for a transaction value of $35 million. Corvia Medical is famed as the designer of the world’s first transcatheter device aimed at treating heart failure.

The company also acquired Mitralign Inc. for an undisclosed value. However, the company stated that it has acquired certain assets of Mitralign, which include the latter’s intellectual property rights, and related clinical and regulatory experiences. Mitralign is a developer of investigational transcatheter annuloplasty system aimed at treating mitral and tricuspid regurgitation.

Both the transactions align with Edwards Lifesciences’ goal of enabling access to the most innovative medical care for patients of structural heart disease.

Hence, Edwards Lifesciences currently is a major medical device company in the field of structural heart disease, critical care and surgical monitoring.

How Strategic Are the Acquisitions?

Corvia Medical’s Inter-atrial Shunt Device has been developed to provide consistent and dynamic decompression to the left atrium, which may deliberate the progression of heart failure. Edwards Lifesciences is highly optimistic about the market acceptance of this device, which has already achieved CE mark in Europe. It is currently in the clinical trial stage and awaiting approval from the FDA.



Mitralign’s therapy for the alleviation of functional mitral regurgitation holds great promise in the market, as four million people alone in the United States suffer from the disease.

Thus, both the acquisitions are expected to strengthen Edwards Lifesciences’ portfolio of cardiovascular devices.

Market Prospects

The global market for cardiovascular devices is projected to reach a value of $66.70 billion by 2024, progressing at a CAGR of 6.5% during the forecast period of 2018-2024. Considering the solid global prospects, these acquisitions by Edwards Lifesciences are strategically-timed.

Recent Acquisition by Edwards Lifesciences

In February 2019, Edwards Lifesciences announced that it has closed a deal to acquire CASMED, a medical technology company specializing in non-invasive of tissue oxygenation in the brain.

Price performance

Over the past year, Edwards Lifesciences’ stock has outperformed the industry it belongs to. The stock has gained 24% compared with the industry's increase of 4.4%.

Zacks Rank & Key Picks

Edwards Lifesciences has a Zacks Rank #3 . A few better-ranked stocks in the broader medical space are ABIOMED, Inc., (ABMD), Varian Medical Systems, Inc. and Masimo, Inc. (MASI - Free Report) . Notably, each of these stocks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ABIOMED’s long-term earnings growth rate is expected at 27.67%.

Varian’s long-term earnings growth rate is projected at 8.00%.

Masimo’s long-term earnings are projected to grow 15.60%.

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