Q3 Insights: Edwards Lifesciences, one of the top makers of transcatheter aortic valve replacements (TAVR) along with Medtronic, said it expects sales growth to be little changed for the rest of the year after rising 1% in the third quarter as hospital staffing woes cut into procedure volumes.
U.S. hospital staffing constraints were “somewhat worse” than anticipated and restricted the growth in TAVR procedures in the region to mid-single digits, CEO Michael Mussallem said on on an earnings call.
Ongoing pressures: Edwards cautioned that the current pressures likely will persist. Getting patients ready for TAVR involves many steps, including CT scans for sizing and angiograms, and staff shortages at any link in the chain can delay the process. While some hospitals have enough staff, others have persistent problems, the CEO said.
“Some say it might take them up to a year or two to improve it. So does it hamper our growth next year? Probably some. We do anticipate a probably tough winter, just because of what's predicted here with COVID and the flu, but beyond that, it's tough to say,” Mussallem said.
Forecast lowered: Anticipating that the staffing challenge and strong U.S. dollar are “likely to persist,” Edwards now expects full-year sales at the low end of its previous $5.35 billion to $5.55 billion range. TAVR sales are also forecast to reach the low end of their $3.5 billion to $3.7 billion range. Edwards lowered its full-year adjusted EPS range, which was previously $2.50 to $2.65, to $2.40 to $2.50.
Shares of Edwards fell 12% to $76.07 in pre-market trading on the New York Stock Exchange.
