China TAVR 1.0 sales ramp up back on track, focus shifts to 2.0. We estimate that by 2025, we could see ~45,000 transcatheter aortic valve replacement (TAVR) annual operations in China, representing a 2020-25 CAGR of 65%. We see second-generation TAVR (2.0) devices to be a large growth driver in the near-to-medium term. When looking at the future competition landscape of the second-generation TAVR market, we find that the first-mover advantage could continue to be a differentiating factor that leads to better sales ramp up. This was further supported by an expert call we had with a TAVR distributor in which our biggest takeaway was that for more established TAVR hospitals, it is hard for new TAVR products to enter procurement channels, meaning that the first-mover advantage is still relevant. In addition, our CS CQi team’s TAVR report finds that TAVR surgery volume has returned to pre-COVID-19 levels and that there is tough competition ahead in the TAVR market.