WorldHeart closes financing round
By Leo Valiquette, Ottawa Business Journal Staff
Thu, Sep 16, 2004 3:00 PM EST
WorldHeart's Novacor device
Heart assist device maker World Heart Corp. wrapped up Thursday a private placement financing worth US$13.32 million that will help fund a key trial against a rival product.
WorldHeart has raised the money by issuing five-year unsecured convertible debentures and warrants through a private placement.
CEO Jal Jassawalla said the new financing will help the company accelerate the RELIANT trial, which pits its flagship Novacor heart assist device against the rival HeartMate from U.S. firm Thoratec Corp.
The trial is meant to prove that the Novacor is just as reliable as the HeartMate as a long-term alternative to a heart transplant.
WorldHeart has been trying to get the U.S. Food and Drug Administration for two years to approve the Novacor for use as an alternative to heart transplant. That would open up a much larger market for the product from its current status as a heart assist device suitable only as a short-term bridge to keep a patient alive until a donor heart becomes available.
The HeartMate won that lucrative FDA approval two years ago.
"In addition to the primary endpoint of survival, the study will evaluate health status and cost-effectiveness, which will provide important data for the expanded use of long-term mechanical circulatory support," Mr. Jassawalla said in a statement.
"We are also particularly pleased that the majority of the investors in this financing are existing shareholders of WorldHeart."
The financing is the second significant announcement from Mr.
Jassawalla since he was named by the company's board to replace Rod Bryden as chief executive in July. His other was to announce that the head office operations in Ottawa will be consolidated with the larger manufacturing operation in California by March.
The move, which is expected to result in reduced operating costs, will leave only few staff in the nation's capital.
VCR
ventracor limited
