Edwards Lifesciences Corporation (NYSE:EW) Q3 2023 Earnings Call Transcript

Bernard Zovighian: So let me start, and then I’m sure, Daveen can add his thoughts. It is a good start. We have seen TRILUMINATE so far, correct? And we believe, TRILUMINATE was a good study, good outcome for patients, safe with great quality of life improvement for its patient, who have a miserable life. We need to remember that. With EVOQUE, we are going to talk about it tomorrow. So it is tough for me to talk about it today. We might talk about it more, at the end of the day tomorrow, at our investor conference. But at the end of the day, quality of life improvements are important. Solid safety profile also is important. And all of that, we see that as a great, start for this patient who have no other options today. Daveen, you want to add anything?

Daveen Chopra: Yeah. I mean I think we continue to see out of our European experience where we do have PASCAL tricuspid approved, that we can, see these great outcomes where the technology is really making a difference in patients’ lives. It’s taking patients that ultimately can’t do the things they want to do in their day to day. They feel really down. They have trouble breathing, and it really just helps them live the life that they want to lead. And so for us to see now in this randomized trial that’s been presented with TRILUMINATE, to see high quality data, where that you can treat tricuspid regurgitation in a randomized trial, get safe results and have significant TEER reduction with meaningful quality of life. Wow, I mean that’s just fantastic for patients.

It’s something we love. And ultimately down to the community and the regulators are going to keep looking at the benefit and risk trade-off to make the decisions that they need to make. But we continue to be super excited by what these therapies are doing for tricuspid patients.

Bernard Zovighian: What we — in addition of what Daveen said, what we like about where we are today is, in the past, few years, it was only about TEER, it was only about repair. So physicians didn’t have a lot of options. And what we are doing is now progressing with our vision to being able to offer to physician a toolbox. So they can decide, what therapy for what patient, for what anatomy. And so that’s still a big progress to where we were in a few years ago, even in a few months ago. So a great progress here, and I see more to come.

Joshua Jennings: No. Thanks for that. Just one follow-up on just the U.S. sales strategy and having two separate teams for TAVR and for the TMTT franchise. Just wanted to hear about how that’s going. And I guess the concern is just are you missing any cross-selling synergies that you could potentially garner from the TAVR sales reps and their deep relationships with some of these interventional cardiologists? Thanks for taking the question.

Bernard Zovighian: Thank you. So what about, I ask Larry, who’s leading that to every day to comment on this.

Larry Wood: Yeah. It’s funny when we launched TAVR in the U.S., if you remember, half of our procedures were transapical. And people were like, hey, you already have a selling organization that’s selling to surgeons, why are you developing this whole new sales organization, you can get a lot of synergy. But it’s really all about providing that high-touch model and that level of expertise, and we built out a completely separate sales force for THV, and I don’t think there’s a day we looked back on that and think that, that was a bad decision. I think we feel that, that was the right decision for the therapy. Mitral patients are different than aortic patients. And, if you ask your clinical specialists and your salespeople to try to be experts in 10 therapies, they’re going to be generalists and all of them not experts.

And I think one of the reasons we’ve had the success we’ve had in TAVR is, when, I think our average field clinical specialist supports about 1,200 cases a year. And so you bring that level of expertise to every case and we really drive differentiated outcomes for patients, which I think what’s driven the therapy and what’s driven our leadership. And we like that model a lot. We think it’s been hugely successful. Just because our teams sit in different organizations doesn’t mean they don’t talk. And Daveen and I talk a lot. I have surgical structural heart now, but I talked to Wayne, our General Manager of that, all the time. We look for where there are opportunities for us to work together. But at the same time, we want to make sure we have focus on these new therapies, and we bring the highest level of expertise possible so we drive the best outcomes for patients possible because we believe that is what’s going to drive long-term, the success of our franchises.

Daveen Chopra: I’ll add one thing on that. This is Daveen. Even here at TCT, as I talk to physicians, the one thing I consistently hear from physicians is, they so appreciate our comprehensive high-touch model. They love that they’re Edwards person who is so deep in the mitral tricuspid space, and that’s all they breathe, live and really think about. And so they can offer the best possible advice to the physician, the best possible collaboration to ensure the best possible patient result. And I just love seeing that this week as I talk to physicians.

Joshua Jennings: That’s helpful. Thanks so much.

Operator: Our next question comes from Travis Steed with Bank of America. Please state your question.

Travis Steed: Hey. Thanks for taking the question. Maybe just to clarify one clarification, when I add your Q4 guide of $0.60 to $0.66, I’m getting to a full year of $2.47 to $2.53, which is different than your full year guidance. So I don’t know if there was a restatement or just wondering maybe my math is off, just wanted to clarify that if you don’t mind.

Scott Ullem: So your math is spot-on at the midpoint of the range that’s exactly what it implies. And so, take the midpoint, it ends up at the lower end of that $2.50 to $2.60 range, but still within the range.

Travis Steed: Okay. Got it. And then, the comment on U.S. and OUS growth rates being comparable. Is that referring to constant currency reported? It looks like OUS is a little bit lighter this quarter, and just wanted to make sure I understood everything going on OUS and some of the Japan comments and what’s going on in Japan.

Scott Ullem: All the growth rates we’ve talked about were underlying constant currency growth rates.

Travis Steed: Okay. That’s fair. And then my last question was on 2024 I know you’re not going to talk a lot about 2024, but curious if you think you can still hold share stable with new competition coming in or if you think it’s fair to assume, something less than the market growth rates in, in 2024.