insider trading

Special Report - 29th November 2007 from Insider Trader

(note: do your own research, vcr is high risk! luckydog.)

Current Share Price: 63c

What does it do?

Ventracor is a global medical device company which produces an implantable blood pump, the VentrAssist left ventricular assist device (LVAD). The VentrAssistâ„¢ is a new third generation implantable blood pump primarily designed as an alternative to heart transplantation for people with heart failure. It may also be used for patients waiting for heart transplants as a bridge to transplant or as a bridge to recovery.

Ventracor’s primary focus is to deliver the VentrAssist™ to the global market.

Analysts value the potential of this market at between US$7.5 and US$12 billion annually.


Why are we looking at it again?

We've picked this stock in 2003 around 50c and it quickly shot to around $3.00. The share price has been steadily falling since then due to the long lead times of getting this product to market and concerns over competition.

They have been in clinical trials for sometime with 172 implants in 24 hospitals worldwide and expect to have between 300 - 400 implants by the end of 2008. Current results are looking positive.

The share price is now showing some signs of support and there is a critical FDA panel meeting to discuss the approval for one of its competitors (Thoratec Heatmate II) on 30th November. If this approval is granted, it will help validate this type of product in the market place and help pave the way for growth in the US markets for similar products. Ventracor believe they have a superior product.


Positive Signs Emerging

1. Smart Money Entering

Our indicator are showing that smart money has been entering over the last couple of weeks. This means that the average buyer is wanting to invest more money than usual.

2. Directors buying

There have been some Directors buying into the stock just recently.
Ventracor market potential
More than 8 million people in the developed world suffer from congestive heart failure (CHF) and about 800,000 or 10 per cent have a life expectancy of less than one year.

Currently, the only treatment available is a heart transplant but there are only around 3,500 donor hearts available each year - worldwide.

As other medical advances extend the average life expectancy, the number of people with CHF grows – the American Heart Association estimates congestive heart failure will compound at a rate of 10 per cent annually.

There is a clear and growing need for a cardiac assist system that reduces the need for a heart transplant and enables people a return to a higher quality of life.

Independent analysts have estimated the annual market for cardiac assist systems – such as Ventracor’s leading VentrAssist™ left ventricular assist system – will grow to $US7.5 billion before the end of this decade.

The unique features of the VentrAssist™ coupled with Ventracor’s ability to manufacture cost-effectively and strong global marketing capabilities will ensure that the company will secure a significant share of this emerging market.

The drivers for market growth are:

Despite a general decline in other forms of heart disease, the rate of congestive heart failure is rising. VentrAssistâ„¢ offers the potential to extend lives and restores normal life to this growing patient population.

Ventracor’s cardiac assist device technology is aimed primarily as an alternative to heart transplant but other markets include bridge to (heart) transplant and bridge to recovery.

In the major market of the United States, health and insurance authorities are currently reimbursing the cost of systems similar to the VentrAssistâ„¢. The VentrAssistâ„¢ system and cost of the operation are potentially much less than the comparative cost of keeping a heart failure patient in intensive care and also less than the total cost of a heart transplant over a patient's lifetime, due to the greatly reduced need for drug therapy such as immune system suppression drugs.

Ventracor’s competitive advantage is its rotary device using hydrodynamic levitation. The robust simplicity of its design, its outstanding bio-compatibility, a unique patented hydrodynamic impeller, small size and affordability set it apart from the other devices.
There are an estimated 11.2 million sufferers of congestive heart failure worldwide, which is increasing by 10 per cent each year. Of these people, an estimated one million have a life expectancy of less than one year. Each year, only about 3,000 people receive a heart transplant as the only current definitive long-term treatment for end-stage congestive heart failure. At the same time, organ donations are decreasing.

Europe and the United States represent a significant proportion of the market for congestive heart failure therapy.

Important Notes:

1. This still has to be regarded as a speculative stock due to possibilities of events like failures in the approval process, product failures and competition and the like. The use of stop loss order would be advised. If all goes well, the share price could be expected to exceed $2.00 within 2 years.

2. Much of this information is from the Ventracor website. www.ventracor.com.au Please visit this site for more information.

3. Please carry out your own research or contact your financial advisor before investing in this stock to ensure it meets your own investment profile