Before turning to the quarterly results, as a reminder, this year we’ve begun reporting sales in three new product groups: surgical heart valve therapy, which combines surgical heart valves and cardiac surgery systems; transcatheter heart valves and critical care, which includes vascular.
Reported sales grew 14% to $459 million, primarily driven by the U.S. launch of SAPIEN. On an underlying sales basis, they grew 13%. Sales outside the U.S. grew 7% on a regular basis, and represent approximately 60% of total sales.
For the first quarter, the surgical heart valve therapy product group grew 3% to $204 million, which included $28 million from cardiac surgery systems. Within this product group, surgical heart valves grew 2% over last year. Outside the U.S., our surgical heart valves grew 7%, driven primarily by penetration of our premium products in Europe and Japan.
Product pricing remains stable in each region. However, strong growth in emerging markets changed the country mix, which slightly lowered our overall global average price. In the U.S., the continued impact of a competitor’s product introduction last year led to a modest decline in surgical heart valve sales this quarter. In the second half of 2012, we expect the impact to diminish as the competitive introduction annualizes.In Europe, we believe we gained share through the growth of our premium products. In Japan, we’re pleased that our Magna Mitral Ease valve was approved in the first quarter, and customers are actively converting to this state-of-the-art mitral valve. Recently, a competitor received an earlier than expected approval of an aortic pericardial valve. We expect these impacts in Japan to be somewhat offsetting for the remainder of the year.We continue to make good progress on our pipeline and are excited about the promise of these technologies. As previously announced, during the quarter we received CE mark for our Edwards INTUITY rapid deployment aortic valve system. As expected, we are initiating our CADENCE and Foundation European post-approval studies focused on the patient benefits and health economics of this new procedure compared to traditional open heart surgery. With this focus on clinical studies, we expect the INTUITY revenue contribution in 2012 to be modest, and to begin contributing to growth next year. Read the rest of this transcript for free on seekingalpha.com
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