Edwards Lifesciences' Sapien forecast misses expectations
Edwards Lifesciences shares slide more than 5% after the medical device company forecasts sales for its flagship Sapien replacement heart valve for next year that miss analysts' expectations.
A conservative forecast for 2014 sent shares of Edwards Lifesciences (NYSE:EW) down more than 5% yesterday and kept them flat today, as the medical device company said it expects more competition next year for its flagship Sapien replacement heart valve.
At its annual investor conference yesterday, Edwards said it expects worldwide sales for the Sapien transcatheter aortic heart implant to be between $700 million and $820 million, a good $20 million shy of expectations on Wall Street. Adjusted earnings per share are slated to be $3.00-$3.10, Edwards said.
"While patient demand for our Sapien transcatheter valve therapy remains strong worldwide, Edwards will face new competition in the U.S. and Europe early in 2014. With the uncertain timing of these competitive entries, as well as the regulatory approvals of our own next-generation technologies, we are providing a wide range of forecasted THV sales," chairman & CEO Michael Mussallem said in prepared remarks.