IRVINE, Calif. - Edwards Lifesciences Corporation (NYSE: NYSE:EW), a prominent medical technology company, announced today it plans to acquire Innovalve Bio Medical Ltd., an innovator in the field of transcatheter mitral valve replacement (TMVR).
Edwards initially invested in Innovalve in 2017 and is exercising its option to acquire the company following notable advancements and encouraging early clinical results from Innovalve's program.
The strategic acquisition is poised to bolster Edwards' portfolio of TMVR technologies, which is part of the company's commitment to addressing the complex needs of patients with structural heart disease. Innovalve will be integrated into Edwards' transcatheter mitral and tricuspid therapies (TMTT) product group under the leadership of Daveen Chopra, corporate vice president.
Chopra commented on the acquisition, highlighting the necessity for a diverse range of therapies to treat mitral disease effectively. Edwards' SAPIEN M3 system is on track for approval as the first transfemoral TMVR system in Europe by the end of 2025. The addition of Innovalve's technologies is expected to expand the treatable patient population and strengthen the company's TMVR platform.
Edwards Lifesciences is actively developing a suite of transcatheter repair and replacement therapies aimed at mitral and tricuspid valve diseases and is dedicated to transforming treatment options with a solid foundation of clinical evidence.
The acquisition is anticipated to be finalized by the end of 2024, pending customary closing conditions. The financial terms of the deal were not disclosed in the press release statement.
This announcement contains forward-looking statements regarding the expected closing of the acquisition and the anticipated benefits and expansion of Edwards' TMVR platform. These statements are based on management's estimates and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from the expectations.
Edwards Lifesciences is recognized globally for its patient-centered innovations in structural heart disease and critical care monitoring. The company continually seeks to improve patient outcomes through its partnerships within the healthcare industry.
Investors are advised that this news is based on a press release statement and that they should not place undue reliance on forward-looking statements, which are inherently uncertain.
In other recent news, Edwards Lifesciences Corp has announced significant executive changes. Senior Vice President and Principal Accounting Officer, Robert W.A. Sellers, will retire effective July 1, 2024, and will be succeeded by Andrew M. Dahl, the current Senior Vice President and Corporate Controller.
Moreover, Edwards Lifesciences has agreed to sell its Critical Care business to Becton, Dickinson and Company for $4.2 billion in cash, a move expected to close by the end of 2024, pending regulatory and antitrust approvals. The proceeds from the sale will be reinvested into strategic growth initiatives, especially in technologies for treating various heart conditions.
Analysts' sentiments towards the company have been positive with Goldman Sachs adding Edwards Lifesciences to its US Conviction List and initiating coverage on its shares with a Buy rating and a price target of $107.00.
Similarly, Citi upgraded shares of Edwards Lifesciences from Neutral to Buy, with an increased price target of $105.00, following a review of the company's first-quarter performance in 2024. These recent developments reflect the ongoing business activities and strategic decisions made by Edwards Lifesciences.
InvestingPro Insights
In light of Edwards Lifesciences Corporation's (NYSE: EW) recent move to acquire Innovalve Bio Medical Ltd., investors may find it beneficial to consider key metrics and insights from InvestingPro. Edwards Lifesciences is trading at a high earnings multiple, with a P/E ratio of 39.09, which reflects investor confidence in the company's future growth prospects. This is supported by a robust Revenue Growth of 11.68% over the last twelve months as of Q1 2024, indicating a strong upward trend in the company's financial performance.
The company's ability to manage its financial obligations is reflected in the fact that its liquid assets exceed short-term obligations, providing a cushion for the company to navigate any immediate financial challenges. Edwards Lifesciences operates with a moderate level of debt, which is a positive sign for investors concerned about the company's leverage and financial stability.
InvestingPro Tips highlight that Edwards Lifesciences' stock generally trades with low price volatility, which may appeal to investors looking for stable equity investments in the healthcare sector. Moreover, the company's cash flows can sufficiently cover interest payments, underscoring its financial health and ability to service debt without straining its resources.
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