Morningstar Rating

Stock Research and Analysis

by Debbie S. Wang

Bulls Say

Edwards' efforts to focus on efficiency and higher-margin products have paid off, as gross margins increased from 47% in 2000 to 75% in 2013.
Cardiothoracic surgeons are a fairly conservative bunch and like to stick with proven devices and brands. As a pioneer in heart valves, Edwards continues to be seen as the gold standard.
Edwards should benefit from an aging population, which experiences problems with heart valves and congestive heart failure with greater frequency. Read more 

Bears Say

Edwards' ambitions to diversify into minimally invasive medical technologies place the firm in direct competition with much larger competitors, such as Medtronic and St. Jude Medical, who can easily bid up prices for emerging technologies that Edwards couldn't match.
If transcatheter aortic valves are as interchangeable as coronary stents, Edwards is vulnerable to quick share loss.
If Sapien pricing remains high even after the entrance of rival Medtronic, practitioners and payers may opt for traditional surgical valve repair among the high-risk patients. Read more 

Management

We think Edwards' stewardship is solid. Previously a group vice president at Baxter, Michael Mussallem has been CEO and chairman of Edwards since the spin-off in 2000, offering a steady presence at the helm. Mussallem receives reasonable compensation,  Read more 

Profile

Spun off from Baxter International in 2000, Edwards Lifesciences designs, manufactures, and markets a range of medical devices and equipment for advanced stages of heart   Read more 

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