Edwards Lifesciences announced on Thursday that it would focus on growing its heart device business by spinning off its critical care unit at the end of 2024.

The company's flagship product, the transcatheter aortic valve replacement (TAVR) device, is under increased competition from Medtronic, Abbott, and Boston Scientific. People with heart valve dysfunction can undergo minimally invasive surgery with the help of this gadget.

In contrast to analysts' expectations of $4.23 billion, Edwards predicted 2024 TAVR sales in the range of $4.0 billion to $4.3 billion on Thursday. According to J.P. Morgan analyst Robbie Marcus, the split should allow the company to concentrate on its core business of producing structural cardiac products rather than devices with comparatively less innovation.

In the early morning, the company's stock increased by almost 2%.

The company stated that the move will help it invest in new technology and target new markets for its heart products. After the deal is finalized, Katie Szyman, vice president of the critical care unit, will lead the new business as CEO.

In 2022, the critical care unit represented around 16% of the entire revenue. This is the most recent spin-off in the field of medical devices. A bigger competitor, Medtronic, declared last year that it intended to split out two of its smaller companies.

According to LSEG data, Edwards anticipates 2024 adjusted profit per share to be between $2.70 and $2.80, which is lower than the analysts' average estimate of $2.80.