Boston, MA 06/18/2014 (wallstreetpr) – Investment brokerage Goldman Sachs Group Inc (NYSE:GS) sees more clarity on the outlook of the medical technology company Edwards Lifesciences Corp (NYSE:EW) after the company has received approval from the Food and Drug Administration or FDA for SAPIEN XT, its next generation product of trans catheter aortic valve replacement or TAVR.
Clarity On Outlook
The brokerage believes that the FDA approval is critical for the medical technology company’s competitive position, and removes any concern about the company being vulnerable to worse than predicted share loss or something that might be wrong with the filing of SAPIEN XT. In fact, Goldman Sachs viewed that this was an opinion held by those, who are more negative on the stock.
The investment advisor said that it also had several conversations with investors and looked upon to take a constructive opinion about the stock. However, it was hesitant to do so before an approval for XT.
Goldman Sachs Group Inc (NYSE:GS) thinks that XT approval was a much needed one to help Edwards Lifesciences hone the outlook for the current year, which presently calls for earnings of around $3.10 per share. At the 35th Annual Goldman Sachs Health Conference, the company indicated that this type of outlook was not ideal, and that there was an objective to offer exact parameters at some other point in the year.
Forecast U.S. Market
The brokerage held the outlook that Edwards would have 73% of the market in the U.S. in the current year, i.e. the first year of a fresh competitor, and an estimated 58% in 2015, which is in consistent with the fourth quarter of the current year exit rate, and sees 60% in 2016 on SAPIEN 3 launch gains. The investment advisor model contemplates an approval for XT during the middle of the current year.
Goldman Sachs Group Inc (NYSE:GS) models the company’s share to be more or less stable around 50 – 55% globally in view of the exclusivity in Japan in the next several years and fresh launches of products in Europe.
The brokerage maintained its rating of Buy on Edwards Lifesciences Corp (NYSE:EW) share and continues to look at it as an attractive strategic and fundamental asset.
