Edwards Lifesciences (NYSE:EW) posted surging 2nd-quarter profits on modest sales growth, saying sales of its flagship Sapien heart valve reached $90 million for the quarter.
The Irvine, Calif.-based medical device company reported profits of $94.1 million, or 82¢ per share, on sales of $517.2 million for the 3 months ended June 30, for a 38.8% bottom-line gain and 7.3% sales growth.
The earnings per share number bested Wall Street analysts’ consensus forecast by 6¢, adjusted to exclude 1-time items.
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"We are pleased to report solid second quarter results, driven by strong sales of transcatheter and surgical heart valves in both the U.S. and Europe," chairman & CEO Michael Mussallem said in prepared remarks. "Our Sapien launch in the U.S. continues to be highlighted by very high procedural success rates and we are gratified to see this therapy changing the lives of so many patients. The growing body of positive clinical data reinforces our conviction that this technology offers a compelling treatment option for a large and growing patient population."
A Japanese nod for the Sapien XT last month made it the 1st commercially available transcatheter aortic valve implant in that country, Mussallem added.
"We continue to expect reimbursement to be established by year end. We believe transcatheter technology will be particularly attractive to Japanese patients, and its introduction there should represent meaningful sales growth beginning next year," he said.
Edwards confirmed its 2013 sales guidance at $2.0 billion to $2.1 billion, saying it still expects adjusted EPS of $3.00 to $3.10. Third-quarter sales are pegged at $475 million to $505 million, with adjusted EPS of 63¢-67¢.
"Our second quarter results increased our confidence in achieving our sales and earnings guidance for 2013 and we remain enthusiastic about 2014 as we prepare for important transcatheter product launches next year in the U.S., Europe and Japan," Mussallem said. "We plan to continue investing substantially in the development of novel heart valves and other structural heart disease therapies, as well as in critical care technologies. We believe our steadfast commitment to innovation will enable us to broaden our leadership position and create value for patients, clinicians and our shareholders."
