How Edwards Lifesciences Corp (EW) Came Back

The company continues to experience strong growth with its SAPIEN line of transcatheter heart valves. However, challenges lie ahead. For one thing, competition will likely intensify.

A recent study published in the Journal of the American College of Cardiology found no big differences in terms of medical outcomes between Edwards’ SAPIEN and Medtronic, Inc. (NYSE:MDT)‘s CoreValve transcatheter valves. The most significant difference was that permanent pacemakers were needed more often with the Medtronic valve. Edwards, however, is seeking to keep CoreValve from being marketed in the U.S. because of alleged patent infringement.

St. Jude Medical, Inc. (NYSE:STJ) received European approval for its 23 mm Portico transcatheter valve in November and has a trial under way with the 25 mm version. The company plans to initiate a trial in the U.S. this year with the goal of obtaining FDA approval.

Boston Scientific Corporation (NYSE:BSX) also plans to jump into the fray. The company bought Sadra Medical in 2011 and hopes to compete with the Lotus transcatheter valve initially developed by Sadra. Boston Scientific has lots of ground to make up, though, as the fourth entrant into the market.

Foolish take
Overall, I think Edwards will keep demonstrating leadership in its market. The stock has yet to regain the highs attained prior to the company’s third-quarter results. I think shares could see solid gains in 2013.

However, my problem with Edwards is that there are plenty of other stocks that should be able to go up even more. It’s not priced cheaply, either, at 28 times forward earnings. I like Edwards, especially with the solid comeback with its fourth-quarter results. I just like other stocks more.

The article How Edwards Lifesciences Came Back originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool owns shares of Medtronic.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.