Key insights
- Edwards Lifesciences (EW) stock surged following a US government proposal to expand coverage for transcatheter aortic-valve replacement (TAVR). The proposal includes coverage for asymptomatic severe aortic stenosis and removes restrictive requirements, which analysts view as a significant positive for EW and the broader TAVR market. This development is expected to enhance procedural efficiency, lower adoption barriers for new programs, and boost confidence in EW's future growth trajectory, potentially leading to increased market share.
Investing.com -- Edwards Lifesciences (NYSE:EW) shares rose 3.6% Tuesday after the U.S. government published a coverage proposal for transcatheter aortic-valve replacement (TAVR), with analysts citing updates that lean positive for the space.
The proposed National Coverage Decision memo included coverage of asymptomatic severe aortic stenosis under coverage with evidence development, elimination of the dual-operator intra-operative requirement, and elimination of various hospital-level volume requirements, among other loosened restrictions.
Analysts noted the expanded asymptomatic coverage is a clear win for Edwards Lifesciences. Shares of Medtronic (NYSE:MDT) and Abbott Laboratories (NYSE:ABT) also rose 0.91% and 0.3%, respectively, on the news.
Evercore ISI analyst Vijay Kumar, who rates the stock outperform, commented, "This was an uber bullish scenario for EW. Every single key metric that the Bulls were hoping for was proposed." Kumar noted lower volume requirements could allow for opening up of more TAVR centers.
Leerink Partners analyst Mike Kratky, who has a market perform rating, said, "We are incrementally positive on EW following the release of the TAVR NCD (National Coverage Decision) proposed decision memo." Kratky added, "These updates should enhance procedural efficiency at established TAVR centers and lower barriers to adoption for new programs."
Truist analyst Richard Newitter, who maintains a hold rating, said the decision memo increases confidence in an 8%+ TAVR trajectory for Edwards Lifesciences into 2027, plus ongoing share gains from Medtronic and Boston Scientific. Newitter commented, "Narrative is on ’EW’s side’ and we see further runway up to our $90 PT."
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