It is hoped that Medicare will approve the total or partial subsidy for implanting these LVAD's.
Sums as high as $US12 Bill. are talked about. It will be a very big event for Thoratec and other makers. The reason is simply that there will be a much larger pool of Patients who will undergo the operation.
That ought to be worth a few dollars per share for Thoratec and VCR should benefit also, the reason being that the theoretical take-over price must rise. My guess is that it could be at least $1/share.
Of course we need to wait till we see the full text of any Medicare approval, possibly on Sept. 15.
Referring to that $1, it is understandable that the market will factor in some of that possible money before Sept. 15.
However, there are signs that it is taking much more than is prudent perhaps.
I believe it to be in everyone's interest that these price rises slow down and some consolidation takes place.
Gerry
VCR Price at posting:
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