Over the past few years, I’ve suggested that my readers consider an investment in the stock of Edwards Lifesciences. As you may know, this company, based in Irvine, California is the world’s leading heart valve replacement device manufacturer.

Edwards stock, traded on the New York Stock Exchange (NYSE: EW), has outperformed almost every other stock that I monitor in the health and technology sectors. Even during the recession, EW has improved shareholder value.

The company recently reported Q1, 2009 net earnings that more than tripled, due to an asset sale and from snowballing revenues of its catheter-based heart valve, called the SAPIEN ^[1], which spares patients the need for open-heart surgery. This unique valve is made from bovine pericardial tissue. Approved in Europe in 2007, it is undergoing a pivotal U.S. trial, with clearance expected in 2011.

If the SAPIEN wins approval, it would be the first valve of its kind to arrive on the U.S. market, although in Europe, it is competing with Corevalve, recently acquired by Medtronic ^[2]. The minimally-invasive heart valve is a sought-after technology and other competitors are expected to jump into the game.

Michael A. Mussallem, Edwards’ chairman and chief executive, said that SAPIEN sales and continued sales in valves that require traditional heart surgery were major earnings contributors. “We clearly believe that the market is getting bigger,” Mussallem told investors during a conference call. He added he believes Edwards can double the number of valve replacement procedures ^[3] conducted since last year.

Long term, with the aging of the baby boomers ^[4], my gut tells me that Edwards will continue to see increased sales from its core, heart valve business.

Keep on tickin!