NEW YORK, Dec. 7, 2007 -- Edwards Lifesciences Corporation (NYSE: EW), a world leader in products and technologies to treat advanced cardiovascular disease, today will provide investors with information on the initiatives expected to drive sales growth and profitability in 2008 and beyond. During its 2007 investor conference in New York City, Edwards' management will present details of the company's growth plans, market expansion opportunities and its financial outlook for 2008.
"We expect 2008 to be a very successful and important year for Edwards Lifesciences," said Michael A. Mussallem, chairman and CEO. "Our market-leading heart valve and critical care franchises provide a strong foundation for continued growth. We expect our strategic portfolio changes and sales of new products to drive greater profitability and grow earnings. Additionally, our market-expanding transcatheter valve technologies are expected to generate more than $20 million of sales next year."
During the conference, Edwards' management also will present the company's financial goals for 2008, including total sales between $1.16 billion to $1.21 billion, increasing gross profit margin by 100 to 150 basis points, delivering earnings per share growth of 11 to 14 percent, excluding the impact of special items, and generating free cash flow of $155 million to $165 million.
Among the specific topics to be discussed at today's event are:
-- Transcatheter Heart Valve Therapy -- Edwards continues to lead the
advancement of transcatheter heart valve technologies designed to
expand the treatment options for patients with severe aortic stenosis
through minimally-invasive therapies. In Europe, the company has
commenced commercialization activities and 18 sites have already
ordered the SAPIEN valve. Also, the company received European approval
to commercialize its Ascendra transapical delivery system. Edwards
continues to expect to generate more than $20 million in sales in 2008.
Edwards is working with the U.S. Food and Drug Administration to modify
the PARTNER trial to incorporate its Ascendra transapical delivery
system and increase the sample size to better ensure that the trial
endpoints are met. Additionally, the company expects the first
clinical use of its next generation valve technology in the first half
of 2008.
-- Heart Valve Therapy -- Edwards expects to strengthen its position as
the worldwide leader in the science of heart valves with several new
product launches in 2008, including the U.S. introduction of its
PERIMOUNT Magna mitral valve. Overall, the company expects to
accelerate growth in this product line in 2008 despite near-term
competitive pressures in the U.S. market. Together with transcatheter
valve sales, Edwards expects to generate 8 to 10% underlying Heart
Valve Therapy sales growth in 2008.
-- Critical Care -- Building upon its decades-long global leadership in
hemodynamic monitoring systems, Edwards' FloTrac minimally invasive
monitoring system continues to generate growth driven by product
enhancements. The company expects its Critical Care product line to
report underlying sales growth of 8 to 10%, consistent with its current
performance.
-- Vascular -- Edwards will discuss the strategic rationale for the
divestiture of its LifeStent product line, as reported separately
today.
-- Financial Outlook -- In addition to confirming its guidance for 2007,
management will detail the company's financial expectations for 2008.
Other members of Edwards' management team attending the conference include:
Thomas M. Abate, corporate vice president, chief financial officer and
treasurer;
Anita B. Bessler, corporate vice president, Heart Valve Therapy and
Cardiac Surgery Systems;
Donald E. Bobo, Jr., corporate vice president, Heart Valve Therapy;
Stuart L. Foster, corporate vice president, Critical Care and Vascular;
Carlyn D. Solomon, corporate vice president, Critical Care;
Patrick B. Verguet, corporate vice president, Europe; and
Larry L. Wood, corporate vice president, Transcatheter Valve Replacement.
Guest Speakers Provide Clinical Perspective
Also speaking at the conference are interventional cardiologistDr. Martyn R. Thomas, director of cardiology and cardiothoracic services at St. Thomas' Hospital in London, andDr. Todd M. Dewey, cardiothoracic surgeon and surgical director, cardiac transplantation and mechanical circulatory support at Medical City Dallas Hospital, who will detail their clinical experience with transcatheter aortic valve therapies.
Webcast Information
The Edwards Lifesciences 2007 Investor Conference can be accessed via live webcast at http://www.edwards.com/investorconference beginning at 9:00 a.m. Eastern Standard Time on December 7, 2007. The webcast will also be archived on the Edwards website after the conference concludes.
About Edwards Lifesciences
Edwards Lifesciences, a leader in advanced cardiovascular disease treatments, is the number-one heart valve company in the world and the global leader in acute hemodynamic monitoring. Headquartered in Irvine, Calif., Edwards focuses on specific cardiovascular opportunities including heart valve disease, peripheral vascular disease and critical care technologies. The company's global brands, which are sold in nearly 100 countries, include Carpentier-Edwards, Cosgrove-Edwards, FloTrac, Fogarty, LifeStent, PERIMOUNT Magna, and Swan-Ganz. Additional company information can be found at http://www.edwards.com/.
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include, but are not limited to, the company's ability to achieve 2007 and 2008 financial goals for total sales, gross profit margin, net income, EPS and free cash flow; the continued success of recently introduced products; the regulatory approval for new products; the continued adoption and sales of FloTrac; the progress of clinical studies and timing of regulatory approvals for transcatheter valve technologies; the impact on financial results of special items. Forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain and difficult to predict.
Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements. Factors that could cause actual results or experience to differ materially from that expressed or implied by the forward looking statements include the risks detailed in the company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 2006.
Ascendra, Edwards, Edwards SAPIEN, FloTrac and PERIMOUNT Magna are trademarks of Edwards Lifesciences Corporation. Edwards Lifesciences, Carpentier-Edwards, Cosgrove-Edwards, Fogarty, PERIMOUNT, and Swan-Ganz are trademarks of Edwards Lifesciences Corporation and are registered in the U.S. Patent and Trademark Office. LifeStent is a trademark of Edwards Lifesciences AG and is registered in the U.S. Patent and Trademark Office.