Ventracor (ASX: VCR) is on the cusp of completing the Australian pilot trial of VentrAssist, a third-generation LVAS (left ventricular assist system), having already implanted seven patients. The company is also about to commence a European pivotal trial within the next month.
The VentrAssist LVAS is currently considered to be one of the smallest and simplest heart-assist devices in clinical trials and we are confident the device, although in a highly competitive space, will gain a substantial niche within the very large and growing heart failure market.
There are 4.8m people in the US suffering from heart failure. 6% if these patients will greatly benefit from the VentrAssist. We estimate that Ventracor only need to capture 1% of this market in order to gain US$50m in sales.
We place a BUY recommendation on Ventracor, with a probability-weighted valuation of $2.52.
Linda Ong Research Analyst
eG Capital Suite 301, 1 Castlereagh St Sydney NSW 2000
VCR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
