Edwards Lifesciences (EW) The 44th Annual William Blair Growth Stock Conference summary

Strategic focus and business evolution

• Refocused on structural heart following the $4.2B sale of the critical care segment to Becton Dickinson, with proceeds to be reinvested in aortic, mitral, tricuspid, and pulmonic valve innovation and business development.

• Three core business units: TAVR (transcatheter aortic valve replacement), TMTT (transcatheter mitral and tricuspid therapies), and surgical structural heart, with TAVR as the largest and TMTT as the fastest-growing.

• TAVR accounted for about two-thirds of 2023 sales, while TMTT represented 3% but grew over 70% in Q1 2024.

• CEO transition to Bernard Zovighian was seamless, with no change in strategic direction or patient focus.

• Continued investment in both internal R&D and external partnerships, including minority stakes and acquisition options, all within structural heart.

Product innovation and clinical advancements

• SAPIEN 3 Ultra RESILIA, the latest TAVR product, features enhanced tissue durability and has gained rapid adoption, now over 50% of SAPIEN sales in the U.S.

• Multiple clinical trials are expanding TAVR indications, including studies for asymptomatic and moderate aortic stenosis patients, with key data readouts expected in late 2024 and 2026.

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

• Surgical structural heart business is growing, driven by new products like INSPIRIS, MITRIS, and Konect.

• Investments are also being made in non-valvular structural heart disease and heart failure therapies.

Market dynamics and growth drivers

• TAVR market growth is supported by new product launches, expanding clinical evidence, and potential guideline changes to treat broader patient populations.

• Asymptomatic and moderate aortic stenosis populations represent significant future growth opportunities, with moderate AS patients estimated to be at least twice as numerous as severe cases.

• Market receptivity to premium-priced SAPIEN 3 Ultra RESILIA has been strong in the U.S.

• Earlier diagnosis and intervention, especially for asymptomatic patients, are seen as key trends in medtech and future growth levers.