In short: Baron (Asset Fund): a new position on share plus market expansion. Edwards has "dominant market share in transcatheter aortic valve replacement (TAVR)," supported "by a robust body of positive clinical evidence and widespread physician familiarity." Three concurrent tailwinds: the market can grow from "$7 billion… to more than $10 billion as approved indications expand"; competitor Boston Scientific exited TAVR and Medtronic released poor data, both driving share to Edwards; and "recent policies implemented by Medicare should expand the number of medical centers that can perform TAVR." The second engine is TMTT (mitral and tricuspid), "structurally much more complex than TAVR" with "an extremely high" barrier — a "$1.5 billion TMTT market" that "can grow to as much as $8 billion." Financials: 78% gross and 27% operating margins, with revenue compounding "at low double digit rates" and EPS "in the mid-teens."
Edwards makes replacement heart valves that are threaded up through an artery rather than implanted in open-heart surgery. It dominates the market for aortic valve replacement, treating a narrowing that eventually kills if untreated.
Baron initiated because three separate things are moving the same way. The market itself should grow from about $7 billion to more than $10 billion as regulators approve the procedure for more patients; one competitor has abandoned the field entirely and another published poor results, both of which push surgeons toward Edwards; and Medicare has widened the set of hospitals allowed to perform the operation.
The second act is the mitral and tricuspid valves, which are structurally much harder to treat and where Edwards has spent over a decade developing both repair and replacement options. Baron thinks that market can grow from $1.5 billion to as much as $8 billion. With 78% gross margins, the combination supports double-digit revenue growth and mid-teens earnings growth for a long time.
Full passage: premium transcript (PDF).
Nothing matches this filter.
Verbatim excerpts from the public transcripts (auto-pulled at each mention's timestamp, lightly cleaned). Timestamps link into the video; "source page" opens that commentator's full analysis at this row. Click a mention's header line to expand it (one open at a time). For personal study — not investment advice.