Edwards Lifesciences (EW) Jefferies 2024 Global Healthcare Conference summary

Business overview and portfolio management

• Four main business units: TAVR, TMTT, surgical structural heart, and critical care, with TAVR comprising about two-thirds of 2023 revenue.

• Critical care business is being sold to BD, reducing the portfolio to three core businesses and focusing on structural heart opportunities.

• Sale of critical care will yield approximately $3 billion in net cash, but investment and capital allocation priorities remain unchanged, focusing on internal programs, manufacturing, and targeted acquisitions.

• Ongoing share buybacks and disciplined balance sheet management are in place.

TAVR business trends and growth outlook

• TAVR guidance for 2024 is 8%-10% growth, with stronger performance expected in the second half of the year.

• US and Japan showed strong growth in Q1, while Europe faced competitive trialing but is expected to normalize later in 2024.

• Only about 13% of severe aortic stenosis patients are treated, indicating significant growth potential.

• Clinical trials are underway for moderate and asymptomatic aortic stenosis, with key data readouts expected at TCT in October.

• New SAPIEN 3 Ultra RESILIA valve introduced in Europe, aiming to improve durability and reduce paravalvular leak.

Diagnosis, awareness, and guideline evolution

• Efforts to increase screening and awareness include information campaigns and leveraging wearable technology.

• Many patients with severe aortic stenosis remain untreated due to gaps in diagnosis and referral.

• Positive trial results for asymptomatic patients could drive changes in screening guidelines and expand the treatable population.

• A halo effect from positive trial data is expected to benefit traditional TAVR adoption.