Edwards Lifesciences Gains 9.2% as Competitor Abandons Heart Valve
0h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
edwards-lifesciencesmedtronic
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Edwards Lifesciences shares jumped 9.2% to close at $104.76 on Monday, May 25, 2026. The surge followed an announcement from rival Medtronic that it was halting the U.S. pivotal trial for its Evolut FX+ TAVR system. Analysts at investing.com reported the news, highlighting a significant setback for Medtronic's competitive efforts in the transcatheter aortic valve replacement market. Edwards' market capitalization increased by approximately $9.5 billion in a single session.
The TAVR market is projected to exceed $10 billion globally by 2027, growing at a high-single-digit annual rate. Edwards Lifesciences and Medtronic have been the dominant duopoly, collectively controlling over 90% of the market. The last major competitive shift occurred in November 2023, when Edwards received FDA approval for its SAPIEN X4 valve, capturing significant market share from Medtronic's Evolut platform. The current macro backdrop features elevated capital costs, with the 10-year Treasury yield at 4.45%, pressuring medtech valuations and increasing the premium on clear commercial pathways. Medtronic's decision to halt the Evolut FX+ trial removes a near-term threat to Edwards' flagship SAPIEN franchise. The catalyst chain is direct: trial discontinuation signals potential developmental or safety hurdles, delaying Medtronic's next-generation product launch by at least 24-36 months. This grants Edwards an extended period of technological and commercial supremacy.
Edwards' stock price moved from $95.90 to $104.76, a single-day gain of 9.2%. The company's market cap rose from roughly $103 billion to $112.5 billion. In contrast, Medtronic shares declined 3.1% to $82.44, erasing about $4 billion in market value. The TAVR market was valued at $6.1 billion in 2025, with Edwards holding an estimated 55% revenue share versus Medtronic's 38%. Edwards' forward price-to-earnings ratio expanded from 32x to over 35x following the news, reflecting increased growth certainty. The broader iShares U.S. Medical Devices ETF traded flat on the day, underscoring the stock-specific nature of the move. Before the announcement, Edwards' stock was down 5% year-to-date; it is now up 3.7% for 2026.
| Metric | Edwards Lifesciences (EW) | Medtronic (MDT) |
|---|---|---|
| Price Change (25 May) | +9.2% | -3.1% |
| Market Cap Change | +$9.5B | -$4.0B |
| Estimated TAVR Share | 55% | 38% |
The immediate second-order effect is a re-rating of pure-play structural heart companies. Shares of Boston Scientific, which holds a smaller position in the TAVR market, gained 1.8% on perceived reduced competitive intensity across the cardiology segment. Companies in the TAVR supply chain, like catheter manufacturer Teleflex, also saw modest gains. The primary risk to Edwards' newfound strength is execution. The company must now capitalize on this window by accelerating patient enrollment in its own PASCAL Ace2 mitral valve trial and ensuring flawless commercialization of the SAPIEN X4. Acknowledged limitations include the possibility that Medtronic reallocates resources to other high-growth areas like neuromodulation or robotics, mitigating long-term damage. Positioning data from options markets showed a steep increase in bullish call volume for Edwards, with the June $105 strike seeing activity triple its 20-day average. Institutional flow moved out of Medtronic and into Edwards, as tracked by block trade activity.
The next specific catalyst is Edwards Lifesciences' second-quarter earnings report, scheduled for July 24, 2026. Management commentary on updated 2026 guidance and SAPIEN X4 sales will be critical. Investors will watch Medtronic's earnings call on June 18 for details on its revised structural heart R&D strategy. Key technical levels for Edwards stock include immediate resistance at its 52-week high of $108.50, established in January 2026. Support now consolidates around the $100 psychological level, which aligns with the stock's 50-day moving average. If Medtronic announces a strategic acquisition in a adjacent therapeutic area by year-end, it could signal a broader pivot away from challenging Edwards' core dominance. The FDA's decision on Edwards' PASCAL Ace2 system, expected in Q1 2027, is the next major regulatory event.
Medtronic's reduced competitive pressure may slow the rate of price declines for TAVR systems in the U.S. market. Hospital procurement contracts often use competition between Edwards and Medtronic to negotiate discounts of 10-15%. With one competitor weakened, Edwards gains pricing power, potentially improving its gross margins by 50-100 basis points over the next 18 months. This dynamic is historically similar to the period following Abbott's exit from the drug-eluting stent market in 2018.
Following the gain, Edwards trades at a forward P/E of approximately 35x, a significant premium to the large-cap medtech peer average of 23x. This premium reflects its pure-play exposure to the high-growth structural heart market and now-clear leadership. Boston Scientific trades at 28x forward earnings, while Medtronic trades at 17x. Edwards' premium is justified only if it maintains annual revenue growth above 12%.
Industry-wide, pivotal trials for transcatheter valves have a historical success rate of roughly 70% for achieving primary safety and efficacy endpoints. Failures or halts, like Medtronic's Evolut FX+, are most commonly due to higher-than-expected rates of paravalvular leak or stroke. Edwards' SAPIEN platform has maintained a trial success rate near 85%, contributing to its reputation for procedural predictability and lower complication rates.
Medtronic's trial failure extends Edwards Lifesciences' competitive moat in the lucrative TAVR market for years.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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