Edwards Lifesciences

Performance indicators

2020: Share in the global market of equipment for the treatment and diagnosis of cardiovascular diseases - 8.2%

The share of Edwards Lifesciences in the market for equipment for the treatment and diagnosis of cardiovascular diseases was 8.2% (Evaluate data). More details here.

History

2020: Abbott sued rival for $0.5 billion for stealing technology for heart surgery

At the end of July 2020, Edwards Lifesciences agreed to pay Abbott $368 million in advance to settle a lawsuit over a patent for transcatheter funds for mitral and tricuspid valve plastic. In addition, until mid-2024, the company must pay Abbott about another $100 million in royalties.

The lawsuit between Edwards Lifesciences and Abbott lasted from the beginning of 2019, when Abbott said that the transcatheter plastics system of Pascal heart valves manufactured by Edwards Lifesciences violates Abbott's patent rights. The court sided with Abbott, and soon in the UK and Switzerland the sale of Pascal systems was banned.

Edwards Lifesciences to pay Abbott $368 million

The last trial was held in the United States. The companies agreed to settle all remaining cases: the court decision allows Edwards Lifesciences and Abbott to compete freely in the European market, since the Pascal system is already used in many hospitals, but obliges Edwards Lifesciences to pay a fine and royalties. According to forecasts, by 2024 the market for transcatheter mitral and tricuspid plastic will grow to $3 billion, so Edwards Lifesciences is waiting for serious expenses.

However, analysts at Jefferies called the 10-year agreement a "very good deal" for Edwards Lifesciences, citing precedent, the same company's litigation with Medtronic. Edwards Lifesciences still remains the dominant force in the fast-growing transcatheter plastic market, which is estimated at $1.2 billion. When the reimbursement rules for this type of transaction change in the US market, Abbott will be the first beneficiary of these changes, but Edwards Lifesciences is already planning to expand the market and will probably take advantage of this opportunity for growth. SVB Leerink analysts also agree with Jefferies and state that this news should not disturb investors.^[1]

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