September 23, 2021
Michael Cartmill, Co-Founder and Medical Device Analyst
Transcatheter Aortic Valve Implantation (TAVI), or if you are state side, TAVR, with the R standing for replacement, refers to a minimally invasive procedure to implant an artificial aortic valve without opening the chest. TAVI devices include a collapsible prosthetic valve attached to a catheter that is threaded through a blood vessel and implanted within the diseased native aortic valve.
The TAVI market is driven by the aging global population and the rising incidence of aortic stenosis, a narrowing of the aortic valve opening that restricts blood flow from the heart. Aortic stenosis becomes more common with age, affecting 2-7% of those over 65 and up to 13% over 85. TAVI provides an alternative for high-risk patients who cannot undergo open-heart surgery for traditional aortic valve replacement.
The global TAVI device market is expected to grow to over $8 billion by 2025, representing a compound annual growth rate of over 16%. Europe currently accounts for over half of all global TAVI procedures due to faster adoption rates, but growth in the U.S. and Asia is accelerating rapidly. The key players in the TAVI market include Medtronic, Edwards Lifesciences, Boston Scientific, Abbott and a growing number of companies attempting to enter with new-generation devices with unique attributes, one such company being Australian listed Anteris Technologies with their DurAVR.
Cordis Medical Advisory Panel members Michael Mack, Michael Vallely and David Celermajer are of the opinion that the TAVI market has a very long runway of growth and as such the Cordis Global Medical Technology Funds holds positions in companies we believe are in the best position to benefit.
Disclaimer
This report was prepared by Cordis Asset Management Pty Ltd ABN 68 637 078 490 a corporate authorised representative (No. 1282680) of Avenir Capital Pty Ltd ACN 150 790 355, AFSL 405469 (“Cordis”)”, the investment manager for the Cordis Medical Technology Fund (“Fund”). Equity Trustees Limited (“Equity Trustees”) ABN 46 004 031 298 AFSL No. 240975, is a subsidiary of EQT Holdings Limited ABN 22 607 797 615, a publicly listed company on the Australian Securities Exchange (ASX:EQT), and is the Responsible Entity of the Fund. This document has been prepared for the purpose of providing general information only, without taking account of any individual person’s investment objectives, financial circumstances or needs. Whilst every care has been taken in the production of this document, no warranty is given as to its accuracy and persons relying on this information do so at their own risk. The information contained in this document is not intended to be relied upon as a forecast and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy, nor is it investment advice. Any forwarding-looking statements or forecasts are based on reasonable assumptions, but cannot be relied upon as guarantees or representation as to what future performance will actually occur. Unless otherwise specified, the information contained in this document is current as at the date of issue and all amounts are in Australian Dollars (AUD). You should consider the Product Disclosure Statement (“PDS”) in deciding whether to acquire, or continue to hold, the product. A PDS and application form is available at www.cordisam.com. Cordis and Equity Trustees do not guarantee the performance of the Fund or the repayment of the investor’s capital. To the extent permitted by law, neither Equity Trustees, Cordis, nor any of their related parties including its employees, directors, consultants, advisers, officers or authorised representatives, are liable for any loss or damage (including consequential loss or damage) arising directly or indirectly as a result of reliance placed on the contents of this report. Past performance is not indicative of future performance. The unit price performance calculation methodology follows the FSC Standard No.6: Investment Option Performance – Calculation of Returns (July 2018). Total returns are calculated based on changes in net asset values, at the exit price after the deduction of fees and expenses. Due to individual circumstances, your net returns may differ from the net returns quoted above.