The Jefferies model showed a sharp step down in December growth (–2% to +3%) from October and November (+27–28%). The result was 21–23% growth in U.S. TAVR sales during the fourth quarter of 2019; the consensus had been for 25–26% growth.
Stock for Edwards — which competes against Medtronic for U.S. TAVR market domination — were down 4.9%, to $231.14 per share, yesterday on the news. The stock was up a bit, to $232.48 per share, in morning trading today.
Jefferies analysts cautioned that the December results in their model could be anomalous due to reporting lags and the lack of new centers in their same-store sales model. “Results could still settle close to consensus.”
Medical device industry insiders consider TAVR a hot area. Recent studies suggest TAVR overall could be a safe alternative to traditional surgery. The FDA in August 2019 cleared heart valves made by Edwards Lifesciences and Medtronic for use in patients at low risk from open-heart surgery.
Edwards is slated to report quarterly earnings on Jan. 30, so stay tuned.
