EW - Earnings call transcript Q1 2022 | Edwards Lifesciences Corporation

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Operator

Greetings, and welcome to the Edwards Lifesciences First Quarter 2022 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to our host, Mark Wilterding, Vice President of Investor Relations and Treasurer. you. Thank

begin. may You

Mark Wilterding

Officer. thank on for Mussallem, today's Officer; Chief Chief and afternoon. Chairman us With Executive Financial Ullem, Scott me call and you Diego, joining all this and Thanks, are Mike

first Just after the financial of regular quarter Lifesciences trading, results. XXXX Edwards close released

based longer-term today's will management for time are limited reimbursement; opportunities; results undertake any to: and financial currency include, projections. statements only Q&A. note guidance and that update and on discuss to During be and included matters; release obligation the making press that remaining approvals; expectations the fluctuations. call, use litigation; estimates, financial made, after accompanying for the which trials; management of does statements will today. were speak growth These forward-looking aren't as Edwards clinical and not but statements those foreign assumptions in on and them These regulatory then Please statements competitive date they

and could available may Annual be the could Form the risks and Edwards' company's on information cause safety involve that filings, and statements release, edwards.com. of SEC our important all press uncertainties at other these factors XX-K results the cause to found are materially. concerning that Report Additionally, differences Information differ which XXXX actual website in on

Mike and I’d Mike? to to call GAAP financial release. With Otherwise, between they press measures. reminder turn Finally, to like for are numbers adjusted, management results. his included a to the when the that call Reconciliations using non-GAAP today's quick is are the and mentioned that, comments. terms over referring in underlying GAAP during referring non-GAAP

Mike Mussallem

you, Thank Mark.

team patient on quarter, very saying I proud and clinicians count to steadfast our our continued chain delivered, the our Edwards. first to me support field skilled Throughout who and dedication strategy. the of Let patients by focused team's supply remain begin our

sales low as progress growth significant Edwards to We care. believe an important for pursuit year of expect be to we on continue our will double-digit Lifesciences opportunities and patient that XXXX improve meaningful

our of remain and we XXXX, pipeline strategy long-term confident our beyond therapies. Looking in innovative

focused patients employees and drives organic growth. patient systems, for breakthrough our create value and culture Our and the motivates strong therapies health around that R&D significant sales enabling world, us can targets our

we're of pandemic constantly reminded other ahead U.S the and behind well and the As pursue us, for work of is cardiovascular cancer hopeful, in of killer worst to number disease, as continues the the world our which we're solutions of conditions. importance one we be the deadly the

first grew globally. basis, our quarter average growth we were were performance TAVR our total underlying with across we a total TAVR sales in Sales double-digit continue expectations. Underlying basis hospitals, regions billion, sales demonstrate procedure strong In our TAVR TAVR, global our a Sales growth comparable. had than approximately In procedure our increased where the quarter year XX% We that capacity, procedure first constant was $X.X estimate as U.S basis hospital grew Omicron XX% outside in quarter. continued QX through Despite across trends distinguished the a lifted ago better adoption and performance. the SAPIEN and broad the sales was on our growth less first an that estimate from based prices million, estimate on growth was prior approximately TAVR clinical sales year-over-year the first U.S., was and U.S., selling the increase were quarter results. were we especially experienced and growth, was and Outside outside Turning pronounced impact financial moderately on XX% sales of by procedure global own from volumes impact valves now to $XXX in U.S., improving first versus on January, and comparable. U.S. pandemic. of an the XX% underlying currency we the benefited the with to versus resources global progress all the year, quarter, the comparable period. growth stable

We continue adoption was based as Edward low. strong our platform opportunities remains for by growth In TAVR of to therapy excellent growth, adoption Europe, of countries. see all across SAPIEN OUS broad driven continued sales was international and the

impacts. number valve throughout our Japan, we rates of position that the was differ competitive recovered aortic stable. experienced reflecting exceeded country, quarter, performed procedures COVID nicely also TAVR strong adoption although replacement. surgical and treatment Our they the We by variable In estimate TAVR

Following for approval the adoption remain at last throughout across focused broadly to availability of we in see we And TAVR risk, country. therapy countries. surgical low year TAVR globe, expanding patients reimbursement the encouraging the of underpenetrated the continue treatment many on

pivotal more trials indication. In helping expanding to aimed on at QX, addition TAVR expansion, to In geographic gain remain patients we continue focused we access two therapy. advance to

moderate the represents AS our trial which with AS. severe with that early evaluating those no First, larger group second, for trial than and And patients much group TAVR a is symptoms. that with AS, large diagnosed patients our severe of PROGRESS is

staffing TAVR remain confident for of by which range. double also on implies summary, assuming billion hospital plan in large global TAVR improvement gradual range COVID trial technology to year, new will shortages $XX compounded headwinds SAPIEN sales remain We our to opportunity a XX% pivotal growth this low We to annual quarter rate be XXXX, a to for double-digit underlying we throughout that the to XX%. our this next growth continue the in track in patients no XX. treating begin the U.S ALLIANCE in and generation In

make of significant progress patient trial real we TMTT. to drivers, approvals turning steady adoption opportunity, and and to To a favorable outcomes. long-term unlock growth world Now to continue results value care differentiated the pivotal three positive on key transform therapies, and clinical support portfolio

repair, more continue patients strong achieve to PASCAL ever than patients supported regurgitation with for quarter. with of technologies as and outcomes clinical for Europe. with by excellent pleased commercially this high mitral our pivotal we momentum with our In patients We with continued our year, are success on we TMTT in and rates, U.S track trial. procedural treated IID we Class PASCAL We mitral degenerative our treat Precision more expand remain this approval late

treatment user of for new we advance differentiated this CLASP pivotal to study and our mitral confidence expect XX through the the extending patients continue European with platform. our and is potential which later technologies engineered Eos. mitral Precision enhanced platforms We In for an experience patients we transcatheter for study mitral the enrollment pivotal year, our system, our early broaden continue ENCIRCLE for And IIF with sub approval experience EVOQUE transfemoral functional This that of these therapies replacement MISCEND the to to in gives many both French navigation trial these of replacement, the SAPIEN with intuitive need. experience MX have regurgitation. transform us PASCAL

Turning tricuspid therapies. to transcatheter

we late build clinical meeting we're data month. As position, evidence breaking recently at pleased the the of the to a continue ACC in presented body with for PASCAL tricuspid last

and currently to Class clinical We reduction experienced are significant by IITR encouraged patients additional through enrolling. forward improvements quality-of-life by pivotal which and the our in bringing in is regurgitation trial sustained measures look evidence tricuspid

the II In addition, enrolling TRISCEND our of we trial progress continue system. pivotal EVOQUE make in to

to late very today. few who for poor have We EVOQUE XXXX providing options these solutions for treatment a in remain tricuspid expect a and prognosis committed approval patients and replacement Europe,

our $XX global by the results, platform adoption Turning driven in million TMTT the to quarter of first sales PASCAL continued Europe. were

with Although exited momentum. we there an impact march in COVID positive early was from the quarter,

achieve high continue to As in we outcomes. clinical excellent procedural physicians Europe, expand rates and success

Surgical first the regions of X% XXXX associated to year were and year. by mitral $XXX ramp the QX a progress quarter soft half increased to by planning premium underlying forward million. with a diminishing on of Assuming $XXX We of an and year continuing COVID, the of and In over start tricuspid encouraged procedure in our the valve patients Heart, advancing Despite the COVID-related the sales gradual $XXX look technologies acceleration steady XXXX to we of over impact, the in driven improvement to most million across guidance significant lives the prior a disease. to increased global a course of we our transform are reach basis vision our penetration quarter toward the million second growth. Structural with sales

without mechanical. shortages the end that surgical RESILIA XXXX to RESILIA concern, At that be hospital designed XX% valve. we mitral thrive mid-single-digit underlying world's allow designed valve of previous offers range of should the generations growth the remain March, compromises and mechanical full Although very from having of summary, confident XX% balanced our a heart's greater remain the Initial year valve, products from sales use the of lines. future be contributions quarter sales. proven strong structural tissue transcatheter continued sales valve therapies lifted a to million our of our technology, positive. been a believe announced durable premium our driven surgeons heart monitoring U.S prioritized. U.S valves portfolio staffing Built patients In interventions. product upon has feedback for surgical to that newest FDA will RESILIA e mitral a $XXX facilitate in are the which potential for underlying Care, lifesaving of remains by increased commercial with of we driven hemisphere surgical by may platform quality-of-life market launch from we nearly our on adds position. ease for mitral technologies. MITRIS to In Critical MITRIS adoption is of state-of-the-art an Demand first and basis, Today, and tissue all approval the come

recovery monitoring our disposable the Our quarter. devices broad the number TruWave patients increased ICU first smart the portfolio in of in supported of sensors pressure and

shift trial Index underlying enrollment continue growth moderated adoption are excited strong I'll focused Recovery for Hypotension to comparisons of make expect remainder designed by now the In the generating year HPI call Scott. Innovations to sales continued clinicians the to our We over for prior the software. our as clinical remain Care patients. the And pipeline mid-single-digit of Additionally, in we we support to SMART-BP to which continue Predictive XXXX, additional Smart of to turn the over summary, evidence focus their on decisions about help we year. technologies better our Critical

Scott Ullem

Thanks, Mike.

were sales performance the well achieved across encouraged regions. to through XX.X% impact This start to Despite achieved sales we quarter, balanced in total by groups income, billion, all in quarter $X.XX. product represents operating We the of share per earnings which all and performed year-over-year and underlying adjusted Omicron our strong year. growth. are the the early our We of $X.XXX fell sales from

exchange headwinds, headwinds. $X.XX billion, $X.XX and foreign first we're from which U.S quarter represents to sales no billion Assuming organic improvement in between the gradual hospital second and partially new sequential projecting staffing growth shortages, COVID offset a quarter be by

year-over-year We per growth $X.XX our quarter sales to lowest given our were the $X.XX. of projecting also of be share the second prior expect our adjusted year, We sales strong second in year to earnings performance. quarter

January we despite haven't and previous the impact, sales hospital COVID-related fully are foreign full of the Although Omicron challenges maintaining guidance overcome we more exchange staffing headwinds our pronounced ranges for XXXX, year U.S. all in

for for year million to million. will And per details XXXX. representing Surgical $XXX to $XXX cover expect $X.X billion $X.XX, to reminder, maintaining additional billion; share of $X.XX of over Critical of million and Care million; I $X.X to a sales $XXX for earnings our to we $X.X growth million; We're TAVR adjusted million $XXX for billion Heart mid-teens total $XXX now our As also guidance for Structural results. billion; to full Edwards, $XXX $X TMTT

adjusted the compared same XX.X% quarter, first profit year. gross margin the XX.X% to our last in was For period

from and expected, euro impact dollar positive this was by exchange, we driven the against the foreign the the improvement of the strengthening yen. primarily As

gross activities hedged quarter XX% and exchange field-based inflationary pressures. We from by to and mix growth. year reflects XXXX impact chain gains in XX.X% of of partially reflecting $XXX expenses personnel-related the improved commercial support continue in between offset and general a to XX%. supply administrative costs sales, and our our were expect full Selling, assumptions be product guidance first million and This our or adjusted of range profit favorable margin foreign

touch expect increased percentage a TAVR, to XXXX as out the model XX% SG&A between for XX% to build continue We as sales we of high year ongoing be and full was to quarter and our continue invest million, increase of in result to expenses transcatheter Research commercial in XX% in sales. or TMTT XX% This and of the activity. grew investments development trial of including $XXX innovations, are continued primarily the team. clinical

evidence XX% and For and we generating the invest to year expect to full sales, to technologies new of as XXXX, continue in R&D developing to TAVR be TMTT. support we XX%

taxes. to Turning

was midpoint quarter U.S guidance potentially this rate creditable unplanned foreign the U.S our XX.X% full in limit that This taxes. included tax or tax is because range, amount impact reported XX.X%, higher the of of the Our published are impact items. it year excluding against QX. regulations slightly special than regulations the taxes of income These of

We expect be estimated three an to accounting. full items from excluding special XX%, stock-based to rate percentage continue including our year XX% tax compensation points benefit to of

XXX our exchange prior sales At occur by to million current quarter additional points the negative points, the compared negative compared million growth We quarter remainder forecast about previous now $XXX basis over reported Foreign FX to to prior decreased positively sales impact, first XXXX $XX or year. impacted first impact. full X.X our $XX year versus expectation year. rates this year. or our rates, of $XXX profit the expect an approximate to negative gross sales a XXXX million percentage of margin the million will X% to compared impact we by rates

Although operating share. rates this guidance, to had relative benefits our rate our January minimal margin earnings quarter per on FX first impact a

points spending was in activities less mentioned flow sales margin $XXX of XXX are first from operating flow hedges million. a and benefiting impacted, approximately in $XXX basis this, we cash from margin defined quarter rates, XXXX as exchange. negatively cash strengthening of benefit as operating $XX at to Free financial impacts in our dollar bottom resulting million, for Investor capital periods rates natural the the conference, At little by of million, like of As line. is foreign current the a result but

expect to and tax a to approximately XXXX accelerated tax research $X.X includes full expenses. in between continue cash will treatment be payments development year change We and billion. $X.X million free flow of This the billion of due $XXX

call our activities. with the Mike, repurchase back sheet update and on balance turning finish I'll to Before over share an

of balance an accelerated to In and short-term repurchase quarter, XXXX. equivalents we and programs. maintain the $XXX first strong investments and in approximately March billion $X.X through a We pre-established million continue with as flexible cash cash, stock sheet in approximately repurchased share XXbX-X XX, agreement

million outstanding a the shares As diluted declined result, approximately by XXX quarter to million. during average X

outstanding XXX XXXX Mike. to it We to diluted between to expect I'll for average with continue over And shares to back pass be million. XXX that, million

Mike Mussallem

Thanks, Scott.

growth about for more our we're confident So in sales the passionate our patients teams and outlook around long-term strong helping world. remain

driving aggressively innovative on while future. investing focus in organic to leading continue our We growth with technologies,

improve leadership coupled with robust of foundation well that, long-term opportunities pipeline as And I'll to success with product value us positions we a pursue continued Our lives. turn for to over Mark. and greater shareholder patients' significant it

Mark Wilterding

Mike. allow order Thanks ask a that one follow-up. the number we broad take that plus ready one we're With In limit to questions participation, of please to for lot, questions. to you

reenter call. as the you will If the please questions, many additional queue participants of have as remainder management during Diego? and answer the possible

Operator

Please [Operator comes Instructions] with ahead. Wells Larry Our Fargo. first Biegelsen question from go

Larry Biegelsen

year. on a and question, the taking nice for congratulations start Thanks afternoon. Good to the

and both for on I'll just progress ask on up guidance. front. One, recovery, the Just to the the them one two me.

seems comment, lower sequentially, the little But because different of the be recovery X% regarding only impact in about looks of the on trends, for growth, the talked historical impact? April, in an just and January. X% a regarding currency currency the and guidance, geographies, conservative based you of about And underlying we which X%. heard TAVR a -- about FX bit QX, revenue business. thinking the up it's midpoint we on it or in I And Omicron your Mike, you're and Scott, incremental -- little about headwind your more assuming what seeing in So, quarter-over-quarter like Scott, particularly range color the March should still about should the

guys. help year just So QX? how and the us Thanks understand you're questions, for about thinking the taking

Mike Mussallem

Yes. Thanks, Larry.

hospitals And, is So They're I'll meaningful. not still COVID. the really impact is different, recovery I I the have why recovered results progress go the a on meaningful. that effect we're Those just think let the workforce around this little staffing they're lot crunch that recovery. it and that first -- start a we shortages fully biggest are an health importantly, me has and when Big having of It's be of real. bit with And the mind on protocols. U.S the costs care issue out the their and industry. of obviously, the about and front Edwards a the in probably significant labor of more from in globe. the of picture, There's and sure U.S talk recovery, to would that a think hangover workforce relates of churn you

is this openings to just is that filled. are of some some And this of be and churn, yet

executives, overall, relative working in improve, the improvement Edwards handily challenges forecasts. I'd a tough mindful our well Now on this have systems say our expect to extraordinarily are in challenged, but conversation address grow with environment. able to pretty systems they hospital procedure and dynamic anticipating these we're growth, gradual in we've aggressively fared to these we're basis. pretty still We're but been And that

Scott Ullem

guidance, your second a middle always purposes. people modeling regarding on we Larry, range guide to just question the for of

billion. of $X.XXX or the to is So, $X.X at XX.XX, $X.XXX midpoint billion billion, that

a that's modeling good assumption. So

of math of is range these And rates QX in with range Your from growth exchange is that about underlying right, sequentially the yes, which QX. year-over-year for X.X%. it's is X.X%

doesn't really So double sequentially the up rate change for underlying from our low our of full and digits. year, growth QX. it And guidance

ranges, hasn't growth impact FX dollar while a is had big so, guidance And underlying it expectations. our impacting our to

Larry Biegelsen

Scott. Thanks,

Operator

Thank you.

JPMorgan. question go Marcus with Robbie from comes ahead. Our next Please

Robbie Marcus

let's hoping schedule call patient are follow-up a seeing maybe some easier on recovery of sense I'll the year in a get a positive Larry's well. of start on a diagnose question. nice my thanks commentary. procedures, Hey, congratulations better little and the or where add was I a little some Maybe it to as bottlenecks faster recovery here. we're to the lot. more of a In the to

So, the not you're biggest maybe patient it's here. logistics walk us seeing a issue. probably demand issue, imagine And it's a where through bottlenecks I more

that'd be helpful just from So, think Thanks. hear I you. to

Mike Mussallem

there's perfect Yes. health get and and data It's conversations Yes, specialists funnel. frontline clinical providers helped just that a limited positive compare, this thanks, own relatively believe but some of And is Robbie. perspective. lot us experience kind We we that the certainly, are into the I be think with to our because small from having, visibility backlog care our think give don't at this clinical small COVID-related have but that's that of we the a we really yet told. by point, a outcomes that story patient people

And live one. to going we're so, this have to

Robbie Marcus

That's it for me. Thanks.

Operator

Thank you.

Matt Credit state Please comes question with Suisse. Next from question. Miksic your

Matt Miksic

Hi. the much Thanks for question. taking so

So centers TAVR centers, if just to U.S. you now. stand we're could know, I potential getting in capacity sort on maybe where maybe of the one of I

at one and So, where the now you're I just like, centers and new follow-up. pace looked then of what have

Mike Mussallem

Okay. smaller and not sense And approach added, of a you a centers at this XXX what there Yes, we're to to overall we on think at few we going that to gives about this are for have probably to projecting. we at And still additional probably the in starting at some that where be centers think we they're this be it's possible but point, approach to we're the be centers numbers. that relatively we're going U.S. impact think us, point. also dramatic centers, hopefully point, But have and tend

Matt Miksic

intensive you or super like, compared you've you've capacity, pace Yes, maybe or model, the investing, talk on just year in last the obviously year, going maybe, what helpful. it of build if then looks to about that's could of forward? like expanding, out this capacity no, Scott, sort I been labor Mike looks what TAVR know Sure. And

Mike Mussallem

Yes.

because So, been compounded the so And of just it's pandemic, growth do has easy to annual looking a period growth XXXX. at ups rate. you to Maybe looking get or you company rate able what whether I'll lost we've quarter since first remind -- XXXX, XX% what we're if and do year look this many in the had the over at downs. full you're at is

XXXX happening the capacity. and adapt is systems, company. which to the number distractions So, treatment on gives with -- XX% the that we again, than rest steady and from pretty all that and pretty on that a And don't X year the each to system even But and continuous rates. constraints been there's expect years, incredible the continue you have little for and evolve now a been of faster TAVR pressures lifting sense to of that handy. a been so gives a all I sense the of have But TAVR basis, hopefully add a it's you

kind will nature. we of expect to more happen it don't be Although overnight, it gradual

Matt Miksic

so Thanks Super. much, Mike.

Operator

Canaccord. Plovanic state Bill question your next Our with question. comes from Please

William Plovanic

TAVR could give of Europe, that for if world just for Great. comments my I think, starting approaching that of Thanks. you. circle Europe, kind wanted would and be on a maybe you a Good just pretty that, rate change the evening. on -- wondering I be that back XX%. to just to more clarity little Thanks one the on business, of international rest surprised Thank taking between approach I'd question. little a looks? it's the how us XX%. Japan significant I'm growth if

Mike Mussallem

places did typically the and were most the don't U.S. the we around in that rates. in of XX% world we growth But outside world penetrated. XX% the and give Japan, Yes, currency range under experience geographies dramatically and that And were country-by-country other included all growth that Europe constant that

in positive. the broad it So, Europe, grew is mean, just country a first quarter. that countries. every based In I all many across was the big of case

year, some but impressive XXXX. and the it a little it a is product to might of was Now nonetheless, in it here that last us been that launched very fact was that was have tougher

the kind what the optimism demand still system years XX there, for -- some the tells ways out and with later what that pace, you in that's growing future. Now gives is of and this at is still us it's up catching

grow we can But expect don't. do Europe pleased So, No, if on important an to contributor we we'd very basis, continue be be growth. Europe to long-term XX%? to a

long-term haven't but exceeded you out, that We recent to growth the it's to rates tried expectations tell our past. in parse I have

Scott Ullem

I is just with growth to TAVR we have significant business global one of do to different that, of at benefits having different a contributing times. this Mike, add the now footprint regions

new And introduced get different got indications markets, devices that on in so, are to different technologies we've issued new markets. that TAVR

really as business it this as footprint. performing, to so, strong maybe by not one one weak period, And helps have offset in another -- broad if region not And is then is. that could be that

William Plovanic

And TAVR. could flattish comp U.S the Excellent. out, trying on the was U.S quarter And the do in I just at steps I'm that And really seeing if felt sequentially. TAVR. it of in is U.S., the like maybe kind get tough it? for TMTT on we're of think as something U.S. get of then about the how even I keep into Thanks. you --- pretty kind was expect we on up into first similar QX that into you're Is U.S., the I figure QX get then that mean, recovering back just looking as we'll to seem think of is a year, should half where we more we the

Mike Mussallem

growth. good a is we We that in about TAVR. one QX it Well, strong was really something mind your point a last boggling, mean, year. saw comp didn't for QX expect I of tough

down in probably quarter not half. say for come TAVR up is think step to record what we But real we in see is QX a TMTT in well. going as an all-time to sales expect in TAVR. we going so really take TMTT that, we're the probably Again, to our QX. second going said is having second off from the Now

a to probably that expect QX QX. be yet and in little to stronger in stronger increase, We continue just

a So, continuous setting expect really we ramp all-time of there highs.

William Plovanic

Thank you.

Operator

from RBC state comes Capital Shagun your with question. Singh Markets. Please question Next

Shagun Singh

a and the just guidance in the I way. taking wanted ask to for different questions. you Thank Mike question Scott,

X, inflation, since it in half. in QX environment. a guidance worse your kept December given pretty environment, pretty results imply dramatic just disruptions, back your So, you've And staffing shift QX intact the despite FX substantial and a the shortages, Omicron guidance, does operating supply improvement

on International just basis your was conservative? just TAVR, it TMTT? I'm an what's since so, And Or outlook? underlying wondering, Is improved your December guidance

Scott Ullem

in good bit say on a in was Omicron about the conditions have and a the U.S., had Europe, talked in But call. talked but introduced pretty it a before say December we been Back in about That’s the question. quarter saw still noticeable all Omicron since U.S. little And really that in impact we're way conditions saw I seeing conference. January, think -- December, Delta Investor back we we generally we'd to We still improved fourth how our the in don't what back January. improved of

the are in foreseen to conference. we better, things what all back So, but maybe had our December not back at Investor way

Mike Mussallem

here, not that that even seen a pretty Yes, recovery has filled and though sure still don't just a But this. hole for future. this at in the point. pile on there, and I was the Omicron nice that's have been exact created behind numbers And we've

range. have good-sized we pretty a guidance So,

within we Omicron to that we haven't feel comfortable guidance from continue hole so, And yet. will be fully the filled range. that But

Shagun Singh

you worried you environment, on But interest to just high the talk follow-up comment you just guess, on capital, purchasing the Got environment capital the the given midst rates on ongoing? especially you that's And just inflation in customers, a Critical the XXXX, slowing I have, and labor just it. cost to generally, capital can about taking Care exposure, as of side. hospital for questions. are in you Thank

Mike Mussallem

perfect maybe not question. the Yes. barometer. Thanks We're for the

For good it's have XX% but of a pretty only capital, capital we about business, overall Critical Care.

recovery a a that started and last good so, in QX, our year. at pretty look pretty year. we saw, part that's recovery year, we in what we Started of probably when part And and comparables saw this of big last capital

think that was significant is expect we pretty So, year, but was than -- that been impressive and this that not to repeat It was last we be it greater think pretty a we it year. pretty it year. -- it last was

what pandemic. from purchasing view, saw way early from days our the people we saw of least we the at are so, recovery a HemoSpheres, And in the quite

Shagun Singh

Thank you.

Operator

Thank you.

your with next comes question from state Morgan Cecilia Furlong Stanley. Please Our question.

Cecilia Furlong

TMTT much the -- acceleration sites that half, you site to talked really the and taking versus or additional about? how for expansion questions. penetration of I Thanks the expected on in ask 'XX in is further but in wanted current the guidance expansion those and either that sites geographic from back for coming

Mike Mussallem

Yes.

this So, to great it's have interfere. COVID is a of Part point. not

we seems mitral little ICU bit with it still has stays impacted mitral though than just traditionally anesthesia some procedure. the by TAVR is has as comparison Just COVID more because a it require and

some of probably it than a existing increased So, contributor sites but adoption in new is is sites. that, bigger the

hopefully little so on that color expecting. you a we're And what gives

Cecilia Furlong

That's just build Thank your just the are launch? TMTT, can quarters helpful. at and force point walk you. expected through sales coming in over U.S., in you've you investments you terms future talked this And then the ahead that about of where out of

Mike Mussallem

Yes.

with trainings of So, we're idea team, the very process field great want the own that a in of of building And that in we building team. physicians, and we're really U.S a do our this fashion. ensure and that job really training we doing to deliberate

outcomes. excellent us. focus pretty going procedural we're And out to it's success to going clinical deliberate on a for gradual and be build having and So,

going that. have experience be And likely are pretty and of competency that bit We're already to to it able this, real a to a high thoughtful base. than to broad maintain we're taking stay of and doing accounts level a in transcatheter so, quite a rather try approach attain and do and in

thinking you about So sense that gives some how it. hopefully, we're of

Cecilia Furlong

for the you Thank taking questions.

Mike Mussallem

Sure.

Operator

question next go Cowen. Josh Please Jennings with ahead. comes Our from

Josh Jennings

Mark. Hi. Good evening, and Scott Mike,

Alterra drive [indiscernible] with wanted the enhancements would of the to you have PVL trial, question was the both share this or Harmony at to maybe this the pulmonary and my is valve, on tape. behind there recall? so access market, into you follow-up transcatheter eliminating Medtronic taking year? and if facilitating anything mild that some or you valve as for questions. on Hopefully, And design could big start valve guidance Just enhancements is ALLIANCE on procedures And the TAVR upside [indiscernible] pertaining today How Transcatheter Alterra follow-up share coronary that what X. ask Thanks or do future just be hit be focused TAVR for [ph] SAPIEN Pulmonary the can the the helpful. design a could then baked with you announced least recall

Mike Mussallem

we design XX. have going believe intent to improved performance. paravalvular have -- certainly SAPIEN Sure. it's have leak Well, and that we We

think also variability We add RESILIA tissue it, a patients. think that of address to some have chance plus which and it a is durability. just it's has big also the that's going And on to in we

that think out. we number has of and trying look we it a so, to forward advantages And

We're large opportunity, In the really really pulmonic that's today haven't a pleased now rolling group. This that. terms product. the the happened gotten on just been into with of isn't that. Alterra We've news I out

a the really an help numbers. tough help the need them I think lost to it the It's obligation opportunity, through able gets compared time. that be overall boy, to in and patients not we market, big really, feel TAVR these are so a of probably to but really that real

Josh Jennings

Understood. Understood. Mike. Thank lot, a

Mike Mussallem

Yes.

Operator

you. Thank

from ahead. comes Wise Next Rick Please with Stifel. go question

Rick Wise

Good expect question you the and about clearly Mike, each for and Scott. conveying PASCAL throughout your afternoon, Mike acceleration of very excitement the year. One you're you.

this You us said just take off. expansion? it's was is give help behind number it but I Is the more Is force the about your better maybe sales the the centers I'm sure, going All color. could little above understand really of fundamentals to training? it us a you opened, hoping optimism? about just

Mike Mussallem

just Europe in Well, is, something point. Rick. clarifying that this point a selling maybe just Thanks, at we're Yes. it's remember,

Rick Wise

Exactly.

Mike Mussallem

so, overwhelmingly you supporting been evidence transcatheter somewhat therapy, when been the Europe mixed. edge-to-edge this positive, hasn't And talk in it's about

rate led trials less going all a when be those of growth going that's should the to market new so real a pluses. to be to contribution are going said in probably really adoption. growing, going going of earlier, be to and And that's family be. think And us then I chance to is there's been sites additional be we it ons. be class as is And to become that's think to team positive than adding positive Europe, lift we what add a a apparent, And the one the has

Rick Wise

Great. last I'm for for And maybe and this me guessing Scott. just

free flow million balance $XXX shape, cash sheets worth of bought in strong. You excellent clearly stock,

there quarter? Thank about the is thinking Edwards perspective? stock the pressure much. the now? stock How your from your so price, you a cash group mind else on as use are anything is market, what's And we second the Given on on appetite repo move through you

Scott Ullem

bringing Sure. question. for Thanks Thanks the for little over the time. us home bit a

So, at changed I'll try have to go quickly here. But not our cash all. priorities

for up we where over We going to was incentive to with offset standpoint. to of beyond share overall a the million year, to time do been buying dilution. invest end repurchase foremost, we're the a we'd look First left continue start authorization. we've over from least at like cash. in eventually, we And business. $XXX $XXX And got gradually and a repurchase the good stock have compensation But repurchase lot with intend in the impact And a to opportunities of also off count. to But this still million we're that, down that. going we

our plan. that deployment So, of just going be to you long-term should expect that's capital part

Rick Wise

Thank you so much.

Mike Mussallem

so your and Okay. additional are Edwards. I to on. Thanks going much interest any by telephone Scott welcome in and Mark for questions continued later

Operator

Thank you. a Have All conference. today's good may disconnect. This parties concludes day.

Edwards Lifesciences (EW) 27 Apr 222022 Q1 Earnings call transcript