Despite a difficult regulatory environment, several medtech companies recently debuted new products, the biggest story being transcatheter heart valves, says Citi Investment Research Director Amit Bhalla.
“From a theme perspective, companies in 2010 that had new product stories were scarce commodities and turned out to be winners, so valuation didn’t matter as much if a new product was coming to market and was able to gain market share or advance technology,” Bhalla said.
Edwards Lifesciences (EW) and Medtronic (MDT) are the largest players in the transcatheter heart valve space, Bhalla says, adding that he has a “buy” rating on Edwards.
“We think transcatheter heart valves are beneficial to the health care system. They not only lower hospital costs in treating patients with aortic stenosis, but they also improve patient outcomes,” Bhalla said. “Those are the two big criteria that I think the health care system wants to see with new products coming to the market.”
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