WASHINGTON (dpa-AFX) - Shares of Edwards Lifesciences Corp. (EW) plummeted over 11 percent in after-hours trade on Monday, after slashing its sales guidance for the third quarter. The company cited poor demand for its transcatheter heart valves as economic sluggishness in Europe impacted procedural volumes, while in the U.S., a patient group was exempted from reimbursement.
Irvine, California-based Edwards now expects third quarter sales at $448 million, down from its prior outlook of $465 million to $485 million.
Analysts based on consensus currently expect the company to report sales of $476.56 million for the third quarter.
In the same quarter last year, Edwards reported sales of $413 million.
Edwards said Transcatheter heart valve sales were below expectations for the third quarter, with global sales estimated at $124 million.
The company stated that in Europe, austerity measures tempered procedural volumes, resulting in underlying sales comparable to last year.
In the U.S., there was no reimbursement for inoperable patients without femoral access. Edwards said a clinical protocol that would allow reimbursement is now anticipated in the next several weeks.
The company, however, expects a rebound in the fourth quarter. The pending FDA approval to expand the indications to treat U.S. high-risk patients with SAPIEN transcatheter heart valve, as well as the recent addition of its larger 29 mm valve will make the therapy available to a broader patient group.
In case the FDA approval happens early this quarter, for full-year 2012, Edwards said it will expect to achieve the low end of both current global transcatheter heart valve sales guidance of $550 million to $600 million.
Shares of Edwards Lifesciences closed Monday at $107.42, down 0.95%, on the NYSE. In after hours, the stock dropped $11.92 or 11.10% at $95.50. In the past year, the stock traded in a range of $61.59 - $110.79.
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