51.5 F
Laguna Hills
Thursday, Mar 28, 2024
-Advertisement-

Edwards’ Big 2010 Earns It ‘Notable Performer’ Nod

Irvine heart valve maker Edwards Lifesciences Corp., one of 2010’s hottest business stories, got more attention in a recent article on Investopedia, an investor website.

Edwards, which saw its stock rise some 75% last year on hopes for its Sapien heart valve, was called one of “the notable performers of the year” by author Stephen Simpson.

The device maker appeared in a section called “Growth is Growth” and was picked for “the benefits of introducing a hot new product,” Simpson said.

“The Sapien transcatheter heart valve has captured hearts and minds,” Simpson said.

The valve, which doesn’t require major surgery, has fueled improvement in what Simpson called “easily the best-performing large-cap medical device stock.”

Edwards had a market value of nearly $9 billion last week. The company’s performance last year earned Chief Executive Mike Mussallem the Business Journal’s Businessperson of the Year honor.

Edwards was spurred last year by early gains with Sapien and high hopes for the device, which is sold in Europe and is in a major U.S. clinical trial.

Sapien is inserted into a patient’s heart via a catheter, eliminating the need for open heart surgery.

Edwards’ valve and rival products are seen as one of the biggest advancements in medical devices in years and are expected to open up the market to patients who can’t handle major heart surgery.

Sapien is expected to debut in the U.S. by late this year.

Simpson’s article also mentioned a pair of device makers that were once based in Orange County.

Volcano Corp., which originated in Laguna Niguel, saw its stock go up 44% in 2010 and counted a recent market value of $1.4 billion. Volcano, now based in San Diego, makes devices that use ultrasound imaging to help treat heart attacks caused by arterial plaque.

Volcano is seeing more and more doctors accept “the clinical utility of the company’s products in improving the quality of coronary care,” Simpson said.

Another “notable outperformer” among device makers with market values of $100 million or more included Cooper Cos., Simpson said.

The maker of contact lenses that moved its corporate office from Lake Forest to the Bay Area in 2007 counted a recent market value of $2.6 billion. Cooper’s stock rose 49% last year.

New Valve Executive

In other heart valve news, CardiAQ Valve Technologies Inc., an Irvine company that’s working on a catheter-based way to implant replacements for damaged mitral heart valves, appointed company director Rob Michiels as its new chief executive.

Brent Ratz, CardiAQ’s founding chief executive, remains the company’s president and assumes the role of chief operating officer. Ratz also is a CardiAQ director.

Michiels most recently was president and chief operating officer of CoreValve Inc., an Irvine maker of less-invasive replacement heart valves. Michiels led CoreValve’s original angel investment.

Minnesota diversified device maker Medtronic Inc. bought CoreValve, which trails Edwards in the race to get less-invasive valves to market in the U.S., for $700 million in 2009.

Michiels once held various global sales and marketing jobs for Edwards when it was part of Chicago-based Baxter International Inc.’s cardiovascular unit.

Challenging 2011

Publicly traded hospital chains could have a challenging year, fueled by state budget crunches and lagging patient visits, according to Goldman, Sachs & Co.

In a research note, Shelley Gnall said hospital visits slowed last year, as they have for a few years following previous recessions, and that she didn’t see a near-term catalyst to push a recovery.

There were fewer chances for hospitals to ease top-line pressures after two years of aggressive cost-cutting, the analyst said.

Besides that, Gnall, who has a “neutral” view on hospital stocks, pointed out that state budget pressures presented a risk to Medicaid rates.

“We expect hospitals will remain discounted and range-bound pending meaningful jobs growth, the key catalyst to drive volumes and earnings growth higher. Meanwhile, (merger and acquisition) potential should limit downside,” she said.

Gnall’s note mentioned that Community Health Systems Inc., a Nashville chain that’s attempting to buy Tenet Healthcare Corp., a Dallas company with three local hospitals, offered the most favorable risk-reward profile among publicly traded hospital operators.

She said that Community’s markets have relatively low unemployment rates and an attractive deal pipeline that can support growth.

Community has offered to buy Tenet for some $7.3 billion, including assumed debt. Tenet executives have pooh-poohed that offer, saying that Community’s price was too low and “opportunistic” given weak industry stock valuations.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-