There was data this week from both Edwards LifeSciences (EW) and STJ on their transcatheter valves. This is a huge growth opportunity, and EW has a lead (already in Europe, about to be in the US). I don't understand this exact issue, but EW stock is down hard the past few days and has been trading like crap of late since the approval or FDA panel approval. STJ's data on this issue is apparently better.
I mention this because its an important longer-term growth driver. These new valves are able to avoid open heart surgery and will apparently double the patient population by including elderly and infirm. STJ has a very rich pipeline in several areas but it is struggling with its large cardiac device franchise (best house in a rough neighborhood).
The medical device sector has had a tough time. It's very cheap, but near-term growth is challenged in the developed world. My target of 61 is realistic if investors start to look further out and allow the multiple to return to 16.
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