Vanguard Heath Care Fund sold out its stake in Edwards Lifesciences Corp. (EW, Financial) in the first quarter.
Vanguard sold 3,217,520 shares for an average price of $82.56 per share.
According to the company's website, Edwards Lifesciences first began when Miles “Lowell” Edwards had the idea at the age of 60 to mechanize the human heart. Edwards had an engineering background in hydraulics and fuel pump operations. He presented the concept to Dr. Albert Starr, a young surgeon at the University of Oregon Medical School who thought the idea was too complex. Instead, Starr encouraged Edwards to focus first on developing an artificial heart valve, for which there was an immediate need.
After two years the first Starr-Edwards mitral valve was designed, developed, tested and successfully placed in a patient. People around the world were astonished by the miraculous success of the surgery. The company Edwards Laboratories formed shortly after the success was later purchased by American Hospital Supply Corporation and became American Edwards Laboratories. Then in 1985 the company was sold to Baxter International Inc. (BAX, Financial) and in 2000 the company was spun off as an independent publicly held corporation.
Vanguard returned an average of 16% annually, while the Standard & Poor's 500 gained an 11% return, during the time that founder Ed Owens managed the fund.
Edwards Lifesciences is also traded in Germany and Switzerland.
Edwards Lifesciences has a market cap of $22.93 billion, an enterprise value of $22.31 billion, a P/E ratio of 45.68 and a P/B ratio of 9.96.
Edwards Lifesciences has a few medium warning signs, according to GuruFocus, which may have influenced the decision to sell out the stake. Edwards Lifesciences is currently close to its 10-year high in price, and the company has been issuing new debt over the last three years. The company P/E ratio is also close to a 10-year high of 49.62, which is another warning sign that may have influenced the sale.
Below is a Peter Lynch Chart for Edwards Lifesciences.
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