Edwards Lifesciences Corporation (EW) completed the sale of its Critical Care product group to Becton, Dickinson and Company for $4.2 billion on September 3, 2024. The divestiture aims to enhance the company’s balance sheet flexibility, allowing for disciplined investments in structural heart technologies, including aortic, mitral, tricuspid, and pulmonic procedures.
With a market capitalization of $43.53 billion, Edwards Lifesciences expects its structural heart division, particularly the TMTT (Transcatheter Mitral and Tricuspid Therapies) portfolio, to see substantial growth. The segment reported a 73% increase in the third quarter of 2024, driven by the expanding adoption of its PASCAL technology. The company forecasts a revenue of $5.82 billion for 2024, reflecting a 3.1% decrease from the previous year.
However, Edwards faces challenges, including macroeconomic pressures such as inflation and staffing shortages in hospital systems, alongside adverse foreign currency impacts affecting gross margins. Over the past year, the company’s stock has decreased by 1.6%, contrasted with a 9.6% rise in the industry and a 30.5% increase in the S&P 500.
