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Edwards to Spin Off Critical Care Business in 2024

The Irvine, CA-based company said the measure will help it focus more on its structural heart offerings, which include transcatheter aortic valve replacement procedures.

Omar Ford

December 7, 2023

2 Min Read
Image Credit: Mohamad Faizal Bin Ramli via iStock/Getty Images

Edwards Lifesciences, a pioneer in transcatheter aortic valve replacement procedures, is proving the ‘spin’ is still ‘in’ for medtech companies. The Irvine, CA-based company said it was going to spin off its critical care business at the end of 2024.

Spinning off the critical care business would allow Edwards to sharpen its focus on TAVR,  Transcatheter Mitral and Tricuspid Therapies; surgical patients; and to invest in interventional heart failure technologies.

The company said the critical care business is integrating a full range of Smart monitoring technologies onto the seventh generation of its HemoSphere platform creating a unique offering of enhanced recovery tools.

“We expect our sharpened focus in structural heart to drive sustainable growth in the years to come as we embark on a new era of innovation to address large unmet patient needs,” said Bernard Zovighian, Edwards’ CEO. “I’m pleased with our performance in 2023 as we have reinforced our TAVR leadership position with new clinical evidence and reached an inflection point with new approved mitral and tricuspid technologies. In 2024, we are projecting strong sales growth and look forward to launching breakthrough technologies and progressing on multiple important clinical trials.”

The company is slated to have its annual investor conference today and noted it would discuss several milestones that include:

  • PROGRESS, a pivotal trial studying the treatment of moderate aortic stenosis patients, expected to complete enrollment in early 2024;

  • Data from EARLY TAVR, a pivotal trial studying the treatment of patients with severe aortic stenosis without symptoms, expected to be presented at the TCT Conference in 2024;

  • Strong global adoption of SAPIEN 3 Ultra RESILIA; expected CE mark approval in early 2024;

  • Continuing to enroll in ALLIANCE, a pivotal trial studying the next-generation SAPIEN X4

Marie Thibault, an analyst with BTIG wrote, “Edwards did not reaffirm ... its expectation that the global TAVR market opportunity will reach $10 billion by 2028 and for the TMTT market opportunity to expand to $5 billion by 2028, although it's possible they reaffirm these targets during the investor presentation.”

The “spin is in” is a phrase coined by EY’s John Babbitt. It details the period during the pandemic when M&A came to a halt and companies pursued spin offs instead.

Some of the most notable spinouts include, GE Healthcare separating from GE; ZimVie spinning out from Zimmer Biomet; and Embecta spinning out from Becton Dickinson.

About the Author(s)

Omar Ford

Omar Ford is MD+DI's Editor-in-Chief. You can reach him at [email protected].

 

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