By Sam Boughedda
Edwards Lifesciences (NYSE:EW) was cut to Equal Weight from Overweight by Wells Fargo analysts, who also lowered the firm's price target on the stock to $78 from $97 on Wednesday.
The analysts explained that the downgrade is based on lower tricuspid sales, the limited upside to TAVR market growth, TAVR share loss, and the slow ramp of Pascal.
"Triluminate data will temper enthusiasm for tricuspid," said the analysts. "On 3/4, the results from ABT's Triluminate study for tricuspid regurgitation (TR) were presented at ACC. Although the study met its primary endpoint, there was no positive signal on hard endpoints, which was disappointing to physicians. We believe that the quality of life improvement and the strong safety will support FDA approval, however, CMS reimbursement is not a certainty given no hospitalization or mortality benefit."
On TAVR market growth, the analysts said they see limited upside with EW growing below market due to increasing competition.
"In the US, almost 90% of isolated aortic valve replacement (AVR) procedures are now TAVR procedures, therefore, TAVR growth will more closely track overall AVR procedure growth, which pre-COVID grew 7-12%. Our checks and third-party data show MDT gaining some share with Evolut FX. ABT's recently approved Navitor is competing on price, and BSX is launching Accurate Neo2 in the US in 2024," the analysts added.