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

Feb 01, 2018 • 05:00 pm ET

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

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Presentation
Operator
operator

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) As a reminder, this conference is being recorded.

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

Executive
David 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'll use the remaining time for Q&A. Our presenters on today's call are Mike Mussallem, Chairman and CEO; and Scott Ullem, CFO.

(Forward-Looking Cautionary Statements)

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?

Executive
Michael 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 continued strong therapy adoption, and our average selling price remained stable overall.

In the US, Transcatheter Heart Valve sales for the quarter were $327 million, representing 22% growth versus the prior year. We believe overall US procedure growth was roughly in line with our growth. These strong results were driven by robust therapy adoption across the more than 575 TAVR centers, with particularly strong growth in lower volume hospitals. And our best in class SAPIEN 3 valve continued to provide excellent outcomes, including faster patient recovery, enhanced quality of life, and exceptional value to this healthcare system. We continue to be encouraged by the strong international adoption of TAVR, particularly when overall therapy penetration is still relatively low.

Outside the US, our fourth quarter underlying sales growth rate was 22%, with