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Edwards Lifesciences Takes Over CAS Medical Systems for $100M

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Edwards Lifesciences Corporation (EW - Free Report) recently announced the closing of the acquisition of CAS Medical Systems, Inc. (“CASMED”). This deal will add CASMED’s FORE-SIGHT non-invasive cerebral oxygenation technology to Edwards Lifesciences’ critical care portfolio.

Edwards Lifesciences is a global pioneer in patient-focused medical technologies for structural heart disease and critical care monitoring. Meanwhile, CASMED specializes in the development of non-invasive brain and tissue oxygenation monitoring technologies.

Notably, Edwards Lifesciences spent $100 million on the buyout.

More on the FORE-SIGHT Technology

Edwards Lifesciences looks to integrate the FORE-SIGHT technology with its HemoSphere advanced hemodynamic monitoring platform. This will offer clinicians a unique range of innovative enhanced recovery tools and predictive analytics skills, which will lead to better outcomes for critical care patients.

 


The FORE-SIGHT technology has received regulatory approvals in the United States, China and Japan. Within the United States, Edwards Lifesciences expects to get 510 (k) clearance from the FDA by late 2019 for the components that aid compatibility between the FORE-SIGHT technology and the HemoSphere advanced hemodynamic monitoring platform.

This acquisition should expand Edwards Lifesciences’ reach in the smart monitoring technology market.

Market Prospects

Per a report by Market Reports World, North America accounts for the largest share of the global brain tissue oxygen monitoring systems market. Rising demand for neurosurgery, advanced healthcare facilities and dominance of major MedTech players in these regions are contributing to the growth of this market. Considering the bountiful market prospects, the CASMED acquisition should benefit Edwards Lifesciences significantly.

Investments by Edwards Lifesciences

Of late, Edwards Lifesciences has been investing to strengthen its product portfolios.

In March, the company acquired Corvia Medical for $35 million, which has developed the world's first transcatheter device designed to treat heart failure with preserved or mid-range ejection fraction. Around the same time, Edwards Lifesciences closed a deal to acquire certain assets of Mitralign, including intellectual property and associated clinical and regulatory experience. Mitralign specializes in the development of investigational transcatheter annuloplasty system to treat functional mitral and tricuspid regurgitation. 

These acquisitions are expected to boost Edwards Lifesciences’ portfolio of structural heart disease innovation.

Price Performance

Over the past year, Edwards Lifesciences has outperformed the industry it belongs to. The stock has gained 29.2% compared with the industry’s 0.3% rise.

Zacks Ranks and Key Picks

Edwards Lifesciences currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are Varian Medical Systems, Inc. (VAR - Free Report) , Penumbra, Inc. (PEN - Free Report) and Amedisys, Inc (AMED - Free Report) . Notably, each of these stocks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Varian’s long-term earnings growth rate is projected at 8%

Penumbra’s long-term earnings growth rate is estimated at 20.9%.

Amedisys’ long-term earnings growth rate is projected at 19.7%.

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