Heart valve sales boosts Edwards Q2 profit

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Edwards Lifesciences has reported a net income of $39.7 million for the second quarter, which ended June 30, compared to net income of $34.9 million for the same period in 2007. Excluding the item from the quarter detailed from a reconciliation, second quarter 2008 net income was $39 million. 

The second-quarter net sales increased 20.2 percent to $327.6 million from $272.6 million in the same quarter last year. Underlying the sales growth was 13.3 percent, excluding a favorable foreign exchange impact of $19.5 million and a $1.7 million reduction from discontinued businesses, the Irvine, Calif.-based Edwards said.

For the second quarter, the company said its heart valve therapy sales of $162.6 million, a 23.8 percent increase over the prior year, which included a $9.7 million positive contribution from foreign exchange. Sales were accelerated by $13.6 million of Edwards Sapien transcatheter heart valves.

The company also said its cardiac surgery systems sales for the quarter were $23.5 million, up from $15.2 million in the same quarter last year, which the company attributed to the integration and growth of the recently acquired CardioVations product line. Vascular sales grew 11.7 percent to $24.9 million compared to the same period in 2007.

Selling, general and administrative expenses were $126.5 million for the quarter, or 38.6 percent of sales, compared to $101.7 million in the prior year, Edwards said. The company said its $24.8 million increase was due primarily to an impact from foreign exchange, higher levels of spending, including the Edwards Sapien transcatheter heart valve launch in Europe and compensation expense related to its sales performance.  

Research and development expenses were $35.4 million for the quarter, or 10.8 percent of sales, compared to $29.1 million in the year ago period. Edwards said its increased level of spending was focused primarily on its transcatheter and surgical valve programs, as well as its critical care development efforts.