Ventracor pumped for recovery sale Ari Sharp January 24, 2009 TROUBLED blood-pump maker Ventracor has captured the interest of an American rival now it has put up the "for sale" sign, but the price to be paid is likely to be well below the estimated $200 million poured into the company over the past decade.
Last month the ASX-listed company announced that its latest round of fund-raising had fallen short of the target, and that it would be courting buyers for itself or its left-ventricular-assist device, VentrAssist.
BusinessDay believes that US cardio product maker Abiomed has been carrying out due diligence on the company for several weeks at its Sydney offices, and is contemplating making an offer with the support of its investment bank, Cowen and Company.
Staff at Ventracor will meet management on Wednesday, when they will be given more information on the company's future. If Ventracor is taken over by Abiomed, it is unclear how many of the local company's 150 staff will be kept on.
Ventracor chief executive Peter Crosby said the company was in talks with several parties, but refused to confirm whether Abiomed was among them.
"We can't say anything right now," he said. "We're in complete compliance with the ASX disclosure rules."
Ventracor's share price peaked above $3 in 2003, but closed yesterday at 6.9¢, down 0.1¢. The company's market capitalisation sits at $21 million.
The Nasdaq-listed Abiomed describes itself as a "global technology leader" in heart support and recovery products. The VentrAssist product would complement its suite of devices.
VCR Price at posting:
6.9¢ Sentiment: LT Buy Disclosure: Held
