Sometimes the government wins. On Friday, the U.S. District Court for the District of Columbia sided with federal regulators and blocked Edwards Lifesciences Corp (EW) from acquiring JenaValve Technology Inc. The decision effectively kills the $1.2 billion deal that Edwards announced back in July 2024.

Edwards isn't happy about it. The company said it disagrees with the ruling and believes the acquisition would have benefited a large and growing group of underserved patients. But disagreeing with a court order doesn't change the outcome, and the deal is now officially dead.

What This Deal Was About

The acquisition targeted a specific slice of the heart valve market: devices that treat aortic regurgitation, or AR. This is a condition where the aortic valve doesn't close properly, allowing blood to leak backward from the aorta into the left ventricle. That makes the heart work harder than it should, and if left untreated, AR carries very high mortality rates. Edwards noted that the condition is typically under-detected and under-referred.

The FTC moved to block the deal in August 2025, arguing that Edwards was trying to corner the market for TAVR-AR devices, which are transcatheter heart valves used to treat aortic regurgitation. "Edwards' attempt to buy the U.S. market for TAVR-AR devices would eliminate the head-to-head competition that has spurred innovation for lifesaving artificial heart valves," said Daniel Guarnera, Director of the FTC's Bureau of Competition.

The regulatory complaint warned that reducing competition in this market would likely lead to less innovation, lower product quality, and potentially higher prices for patients. The court apparently found that argument convincing enough to grant a permanent injunction.

Edwards Raises Guidance Anyway

Here's the interesting twist: despite losing a $1.2 billion acquisition, Edwards actually raised its earnings forecast. The company now expects full-year 2026 adjusted earnings per share of $2.90 to $3.05, up from its previous guidance of $2.80 to $2.95. The new range tops the analyst consensus estimate of $2.87.

Part of the reason might be that Edwards is pursuing its own solution. The company said it's advancing the SOJOURN transcatheter AR valve and currently enrolling patients in the JOURNEY pivotal trial. In other words, rather than buying the technology, they're developing it in-house.

Recent Developments

The blocked acquisition isn't the only news from Edwards Lifesciences recently. In December 2025, the company received FDA approval for its SAPIEN M3 mitral valve replacement system, which became the first transcatheter therapy using a transseptal approach approved for mitral regurgitation (MR).

The SAPIEN M3 transcatheter mitral valve replacement system is designed for patients with symptomatic moderate-to-severe or severe MR who aren't suitable candidates for surgery or transcatheter edge-to-edge repair (TEER) therapy. It's also indicated for patients with mitral valve dysfunction deemed unsuitable for surgery or TEER by a multidisciplinary heart team.

On the personnel front, Edwards announced in October 2025 that Scott Ullem, the company's chief financial officer, would transition from his role by midyear 2026. Following the appointment of a new CFO, Ullem will continue with the company in an advisory capacity.

EW Price Action: Edwards Lifesciences shares climbed 1.21% to $86.16 in premarket trading on Monday, approaching the stock's 52-week high of $87.89.