Hi Ice my thoughts are either Medtronics or Edwards will run a deal with AHZ . Here’s my theory , Both are heavily cashed up with extremely large cornerstone investors. I read a article not long ago stating some cornerstone investors have large stakes in both companies (wether that’s true I don’t know ) . Both companies have a lot to loose if the TAVR valve utilising the ADAPT platform lives up to all the hype ( lets for now assume it does ). . Looking at Medtronics they are one of the world leaders in conventional heart valves . They also have their own TAVR valve which at this stage it’s sales are overshadowed by Edwards valve . It’s probably fair to assume Medtronics have not recovered the cost of buying Corevalve and the further R&D of their current valve seeing it was approved only 4 yrs ago and they would have to be thinking are they ever going to be a serious threat given Edwards dominance in this field . Medtronics main worry would be IF the ADAPT. TAVR valve does live up to the hype and did fall into the hands of Edwards how would that affect their sales of conventional valves ? Similarly the same could be said for Edwards , are they prepared to risk loosing their currently 3 billion dollar a year profits ? All this boils down to one thing , how good is this ADAPT TAVR valve ? If either of these two see it as ultimately being a class leading valve capable of being the first option for most patients they will partner up or buy it outright ( I am thinking they would buy it ) . Sure their are other players in the field but none would have the cash to outbid one of these two if they had their eyes fixed on AHZ . I am still feeling very confident about the outcome , I would not be surprised if one of these two arrive at the 11th hr with a deal that overshadows any other players . The kind of money involved to buy AHZ would be peanuts for either of these two and they would have the bonus of the ADAPT products to market immediately through their existing networks
AHZ Price at posting:
6.0¢ Sentiment: Hold Disclosure: Held
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