Edwards Lifesciences recall looks to be minor issue, says Wells Fargo
Wells Fargo analyst Larry Biegelsen spoke with Edwards Lifesciences after Mass Device reported the company has recalled all Pascal guide sheaths due to the potential for damage to the inner liner of the guide sheath as the result of a manufacturing issue. According to the company, the issue came to light during the inspection process, Biegelsen tells investors in a research note. Further, Edwards Lifesciences does not manufacture this guide sheath, the analyst adds. The recall was initiated on November 1 and the company plans to resume shipments of the Pascal guide sheath this month, Biegelsen says. Since a guide sheath is required to do an implant, the analyst expects the recall to result in only a "brief pause" in Pascal implants in Q4. As such, he views the issue as minor and keeps an Outperform rating on the shares. The stock in afternoon trading is up $3.22 to $243.54.