half year summary

Achieving Milestones
December 2006 Half Year Results
Key Points:
• Achievement of major milestones
• Total revenue $2.6m including VentrAssist sales revenue of $1.2m
• Net operating loss $17.9m in line with expectations
• Cash reserves of $35.1m as at 31 Dec 2006
• ∼90 implants and 43 patient years cumulative experience with the VentrAssist
SYDNEY, Australia 13 February 2007: Ventracor (ASX:VCR) continued progress towards global commercialization of its VentrAssist™ Left Ventricular Assist Device (LVAD) during the period with the achievement of major milestones, and growing experience with the VentrAssist.
Total revenue received during the half year was $2.6m (2005 half-year: $1.3m), including revenues of $1.2m (2005: $0.5m) from the sale of its VentrAssist in each of the markets in which it operates - Australasia, Europe and the USA.
The loss for the half-year was $17.9m (2005 half-year loss: $14.8m). This operating loss reflects an increase in the Company’s global operations compared to the previous corresponding period. As expected, expenditure has increased in regulatory, clinical affairs and marketing, but capital expenditure has decreased with the completion of the capital works program in manufacturing. Depreciation expense increased during the period to $1.5m from $1.0m in the prior period.
Cash reserves as at 31 December 2006 were $35.1m
Milestones Achieved
• European Market Launch of the VentrAssist (September 2006)
• CE Mark approval (December 2006)
• FDA approval for home discharge (November 2006)
• Completion of target ten patients implanted in US feasibility trial (January 2007)
• Agreement with the FDA on the protocol for the Bridge to Transplant (BTT) Pivotal Trial (December 2006)
• FDA Conditional Approval for the US Destination Therapy (DT) Trial (December 2006)
• FDA agreement to our request to extend enrollment under the feasibility trial protocol by 20 more patients and 5 more centres (December 2006)
• Australian Government approval of a Commercial Ready Grant of $2.8m (January 2007)
• All key manufacturing processes in house (August 2006)
• ∼90 implants in 13 centres worldwide, with over 43 years cumulative patient experience.
• Strengthening international leadership team