Edwards Lifesciences Corp. (NYSE:EW) Q4 2017 Earnings Conference Call Transcript

Feb 01, 2018 • 05:00 pm ET


Edwards Lifesciences Corp. (NYSE:EW) Q4 2017 Earnings Conference Call Transcript


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Greetings, and welcome to Edwards Lifesciences Fourth Quarter 2017 Results. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

It is now my pleasure to introduce David Erickson, VP, Investor Relations. Thank you. Please begin.

David K. Erickson

Welcome, and thank you for joining us today. Just after the close of regular trading, we released our fourth quarter 2017 financial results. During today's call, we'll discuss the results included in the press release and the accompanying financial schedules and then we will use the remaining time for Q&A. Our presenters on today's call are Mike Mussallem, Chairman and CEO; and Scott Ullem, CFO.

Before we begin, I'd like to remind you that during today's call, we will be making forward-looking statements that are based on estimates, assumptions and projections. These statements include, but aren't limited to, financial guidance and current expectations for new product approvals, benefits and introductions, clinical and regulatory timelines, competitive matters, expectations for therapy adoption and foreign currency fluctuations. These statements speak only as of the date on which they are made, and we do not undertake any obligation to update them after today.

Additionally, the statements involve risks and uncertainties that could cause actual results to differ materially. Information concerning factors that could cause these differences and important safety information about products may be found in our press release, our 2016 annual report on Form 10-K and our other SEC filings, all of which are available on our website at edwards.com.

Also, a quick reminder that when we use the terms underlying and adjusted, we are referring to non-GAAP financial measures. Otherwise, we are referring to our GAAP results. Additional information about our use of non-GAAP measures is included in today's press release and on our website. And now I'll turn the call over to Mike Mussallem. Mike?

Michael A. Mussallem

Thank you, David. We're pleased to report robust fourth quarter results including double-digit organic revenue growth in each region driven by increased adoption of our therapies. We ended the quarter strong with total adjusted sales of $909 million representing 16% underlying growth as we did not experience as much of a slowdown as we typically see in the last weeks of the year.

Our growth rates strengthened in the fourth quarter contributing to full year 2017 results of 16% underlying growth and over $3.4 billion of sales. Each of our product lines performed very well as demand for our innovative portfolio exceeded our expectations. Profitability was also strong in 2017 with adjusted EPS growing over 30% even as we continued to invest aggressively in our technology pipeline and infrastructure. And we continue to bring meaningful therapies to large unmet patient needs and further strengthen our leadership positions.

Turning to transcatheter heart valve therapy adjusted global sales were $540 million up 22% on an underlying basis over the prior year including the adjustment for the consumption of stocking inventory in Germany. Double-digit TAVR sales growth across all regions was driven by