heartware granted first european patent, page-4

insider buying in heartware. Fresh money pumped into unsteady HeartWare
By Rebecca Urban
February 12, 2005

Heartware directors continue to throw money behind their company, unfazed by the prospect of a drawn-out legal battle with competitor Ventracor. The lagging share price of the medical device developer - trading at a slight discount since it listed last month - has done little to dampen their enthusiasm either.

Deputy chairman Seth Harrison bought about 750,000 shares for Apple Tree Partners, the New York-based venture capital firm of which he is a managing partner. He picked up the shares off market on February 1 for $352,584, or an average of 47¢ a share. The fund now owns almost 91 million shares, or 60 per cent of the company.

Fellow directors Denis Wade and Robert Thomas have also increased their exposure after buying on the market. Mr Wade paid $47,000, topping up his family superannuation fund with 100,000 shares, while Mr Thomas - the only board member with a direct interest in the company - bought 72,000 shares.

HeartWare issued shares to the public at 50¢ and the offer was oversubscribed despite Ventracor launching legal action in the US alleging HeartWare was infringing two of its established patents.

But some directors in the speculative biotechnology sector have elected to play it safe with their portfolios, allowing options to buy shares to expire.

Tracey Brown, the woman behind the science at cancer drug developer Meditech Research, chose not to exercise 250,000 options at 20¢ - a decision no doubt influenced by Meditech's trading price of 15¢.

And Benitec chairman Raymond Whitten has let 1 million options with an exercise price of $1 a share expire. Shares in the research and development company have traded south recently, last closing at 50¢. He still has 750,000 options to be exercised at $2 and $2.50.

Elsewhere, Bendigo Bank chairman Richard Guy has taken a stake in his new endeavour, gold explorer Bendigo Mining.

He was welcomed onto the board on January 18 and a fortnight later picked up 20,000 shares on the market for 90¢ each. It's already turned out to be a smart investment; the shares last closed at 95¢.