Rival's US approval should warm Ventracor's heart3 December...

Rival's US approval should warm Ventracor's heart

3 December 2007

Australian Financial Review page 20 Copyright 2007



Shares in heart pump manufacturer Ventracor should receive another jump start today after it’s key competitor, US-based Thoratec, received crucial Food & Drug Administration approval for its “Heartmate II� product over the weekend.



This should help pave the way for FDA approval for Ventracor’s own VentrAssist product, which is a third generation heart pump and so more developed thatn Thoratec’s second generation Heartmate II.



Ventracor shares rose almost 13 percent in the last two trading days of last week in anticipation of the FDA’s approval of Thoratec and the company is expected to confirm the news today.



The adoption of Thoratec will provide clues on how well VentrAssist would fare in the same market. VentrAssist is already approved for use in Australia and Europe.



Once approved in the YS, VentrAssist is anticipated to deliver a wholesale price of about $US75,000 ($85,000) a unit and a 75 percent gross profit margin.



Broker Intersuisse rekons there could be 618 new implants in full year 2011. But approval for VentrAssist is still some way off, with Ventracor conducting US clinical trials expected to be completed in late 2008 or early 2009. Following that, the company will seek FDA marketing approval.//.