Big, Big, Big Boomer Growth Expected For Heart Valve Replacement Industry
By Adam Pick on December 22, 2008
You don’t have to be Warren Buffet to know that investments in heart valve companies may pay off big time in the future.
The wants and needs of the Baby Boomers have triggered almost every financial trend since World War II. Don’t believe me? Consider the Baby Boomers’ impact on the popularity of select automobiles.
In the 1960s, as the Baby Boomers started turning 16, millions of drivers licenses were issued. The Baby Boomers wanted fast, sporty cars. Thus, the wild success of the Ford Mustang.
Then, in the late 1970s and early 1980s, the Baby Boomers had lots and lots of children. Lee Iacocca realized the Baby Boomers’ need for bigger, more convenient cars. Thus, the ridiculous success of the Chrysler Minivan.
Now, it’s all about health care for the 76 million Americans known as the “Baby Boomers”. When you consider the size of this market and the rampant surge in heart disease, it makes complete sense that the rate of heart valve surgery is going to soar during the next twenty years.
Consider the recent, financial results of Edwards Lifesciences. Edwards is the world’s leading heart valve replacement device manufacturer. The company, which practically invented heart valve replacement surgery in the late 1960’s, is expecting revenue growth in 2009.
Really? Revenue growth in 2009?
That’s odd considering that most companies ARE NOT offering financial guidance for 2009 due to the recession.
Take a guess what is boosting sales at Edwards Lifesciences? Yep, you guessed it… Heart valve replacements. Edwards believes that its porcine valves and pericardial valve replacement sales will grow 14% – 16% during 2009.
I just looked at Edwards Lifesciences’ stock (symbol EW on the New York Stock Exchange). Edwards’ share price is actually up for the 2008, while most equities are down over 40%. I’m a terrible stock picker but I think I may just have to call my broker about this one.
Keep on tickin!