A few months ago, I wrote a story about the ongoing [1] consolidation of the heart valve manufacturing market - especially for the new, minimally invasive technologies. It appears that there will be more mergers and acquisitions in the near future, according to recent reports.

Analysts are speculating that Irvine-based Edwards Lifesciences Corp. could be a takeover target by two medical device heavyweights looking to get into a new type of heart valve.

Johnson & Johnson and Medtronic Inc. announced plans last month to get into valves that don’t require major surgery ([2] full broken sternum recovery). The quickest way for either company to do that would be to acquire an existing heart valve maker, according to analysts.

“Given the length of time it takes to get approved, it just seems like it’s more logical to go out and buy your way in,'’ Owen Fitzpatrick, head of equities for Deutsche Bank, told Bloomberg.

Edwards has emerged as a leader in a new type of heart valve that doesn’t require a [3] median sternotomy. The device is seen as becoming a larger part of the market in coming years.

The company’s [4] Sapien heart valve is sold in Europe and is undergoing U.S. trials with potential approval by 2011. Edwards has a five-year lead on its rivals, analysts say. That makes the company a potentially coveted acquisition for bigger players, Fitzpatrick and others say.

Edwards’ main rival is St. Jude Medical Inc. of the Minneapolis area.

New Jersey’s Johnson & Johnson doesn’t make heart valves now. Minnesota’s Medtronic makes conventional heart valves in Santa Ana and has been working on a less-invasive valve.

Edwards could command a buyout premium of up to 60% based on recent industry deals, according to Jan David Wald, a Stanford Group analyst in Boston.

Shares of Edwards, which trades on the New York Stock Exchange, are up about 30% in the past year with a recent market value of $3.5 billion.

Click this link if you would like to read a recent update on [5] Edwards’ minimally invasive aortic valve replacement procedure (video included).

Keep on tickin!