Healthcare Industry News: Edwards Lifesciences
News Release - December 7, 2007
Edwards Lifesciences to Sell LifeStent Product Line to BardCore Growth Platforms Will Receive Increased Investment
IRVINE, Calif., Dec. 7 (HSMN NewsFeed) -- Edwards Lifesciences Corporation (NYSE: EW ), a world leader in products and technologies to treat advanced cardiovascular disease, announced today that it has entered into a definitive agreement to sell certain assets related to the Edwards LifeStent peripheral vascular product line to C.R. Bard, Inc. for up to $140 million. The transaction is expected to close in January 2008, pending regulatory approvals.
"Although sales are growing, the LifeStent product line is generating operating losses," said Michael A. Mussallem, Edwards Lifesciences' chairman and CEO. "This transaction enables Edwards to increase our investments in the exciting opportunities in our market-leading heart valve and critical care businesses. Achieving leadership in the peripheral vascular market would have required substantial additional investment, which can now be directed to our core businesses."
Under the terms of the agreement, Edwards will receive an initial cash payment of approximately $75 million at closing, plus an additional $65 million in cash upon the achievement of certain milestones, including the receipt of U.S. regulatory approval of Edwards' LifeStent products for a superficial femoral artery indication and the transfer of LifeStent device manufacturing. For 2007, this business represents approximately $30 million in sales.
Edwards will provide transition services for a period of up to two and a half years following the closing. Approximately 150 employees may be affected by the end of the transition.
"We would like to express our sincere gratitude to our dedicated employees along with the committed clinicians in this field with whom we have had the opportunity to work over the past several years. We clearly recognize the value that has been created as a result of their efforts to improve the care of patients suffering from peripheral vascular disease," said Mussallem. "We are pleased that patients will continue to benefit from this technology under the new ownership."
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, those related to the expectation that regulatory approvals will be timely received and the company will increase investments in its businesses. 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 experiences to differ materially from that expressed or implied by the forward-looking statements include those 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.
Edwards is a trademark of Edwards Lifesciences Corporation. Edwards Lifesciences, Carpentier-Edwards, Cosgrove-Edwards, FloTrac, Fogarty, PERIMOUNT Magna and Swan-Ganz are trademarks of Edwards Lifesciences Corporation and are registered in the United States Patent and Trademark Office. LifeStent is a trademark of Edwards Lifesciences AG and registered in the United States Patent and Trademark Office.
Source: Edwards Lifesciences
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