The world's biggest maker of heart valve replacements, Edwards Lifesciences Corp., has high expectations for itself for more growth in 2008, forecasting that its earnings will jump 11% to 14%. Contributing to that growth, the New York-based company has pruned some of its slower-growing holdings over the last couple of years, most recently agreeing to sell its money-losing LifeStent peripheral vascular product line to C.R. Bard Inc. for $140 million on Friday.
Continue reading below
The sale calls for Edwards to receive an initial cash payment of approximately $75 million at the closing. Edwards will receive $65 million in cash if C.R. Bard can achieve certain milestones that include the receipt of U.S. regulatory approval of Edwards' LifeStent products for a superficial femoral artery indication and the transfer of LifeStent device manufacturing. The transaction is expected to close in January 2008, pending regulatory approvals.
Meanwhile, Edwards is banking its growth on some small additions over the last two years that include the Cardiovations Division of Somerville, N.J.-based Ethicon Inc. for about $27 million in November and the mitral valve repair unit of European rival Jomed NV for about $20 million in 2006.
Full coverage will come later in The Daily Deal and on TheDeal.com. — Gerald Magpily
See Edwards Lifesciences earnings growth press release
See Edwards Lifesciences divestiture press release
See story from Reuters
