Attention Business/Financial Editors/Medical Reporters:
World Heart Corporation Announces Results for the First Quarter of Fiscal 2000
OTTAWA, ON, Canada, April 25 /CNW/ - World Heart Corporation (WorldHeart
or the Corporation) today announced results for the first quarter of fiscal
2000, which ended on March 31.
During the quarter the Corporation completed the first production model
of HeartSaver VAD and established the manufacturing program for production of
systems for formal in vivo and in vitro trials. The product and production
program benefitted from testing and revisions based on more than forty systems
produced in the Corporation's facilities in Ottawa in 1999. Design
improvements in the battery and related control systems were completed in the
quarter and production work began to make these components available to meet
the in vivo and in vitro trials program in the second and third quarters of
2000. The pre-clinical trials program remained on schedule for completion
during the third quarter.
The HeartSaver VAD system was presented and reviewed with leading
clinicians and scientists at conferences in the United States, Japan, Brazil
and Europe. The Corporation continues to believe that HeartSaver VAD is the
only pulsatile assist device designed to be fully implantable in the chest and
remotely powered, monitored and controlled without holes in the diaphragm or
skin of the user.
On March 17, a treasury issue of common shares was completed at a price
of $19.50 per share, for estimated net proceeds of $15.0 million after costs
of the issue. At the end of the first quarter cash reserves were $35.8
million compared with $12 million a year ago. These funds are expected to
meet the needs of the Corporation through 2001, including costs of clinical
trials planned for that period.
As expected, no revenues were earned in the first quarter of 2000,
unchanged from the first quarter of 1999. Also as expected, the net loss for
the period was $4,558,885 or $.32 per share, compared with $2,703,925 or $.22
per share for the first quarter of 1999. The increased loss for the period
includes research and development expenses of $3,120,700 or $.22 per share
compared with $1,761,429 or $.14 per share for the first quarter of 1999. All
financial figures are expressed in Canadian dollars and are prepared in
accordance with generally accepted accounting principles (GAAP) in Canada.
WorldHeart is a medical devices business focused on commercialization of
artificial heart and related technologies for which worldwide rights were
acquired from the University of Ottawa Heart Institute. Continuing research
and development of these technologies is carried out under contract to
WorldHeart by the Cardiovascular Devices Division of the Ottawa Heart
Institute Research Corporation, an affiliate of the University of Ottawa Heart
Institute. WorldHeart is a public company whose stock trades on the NASDAQ
National Market (ticker symbol: WHRT) and The Toronto Stock Exchange (ticker
symbol: WHT).
Any forward-looking statements in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that all forward-looking statements involve
risk and uncertainties, including without limitation, risks in product
development and market acceptance of and demand for the Corporation's
products, risks of downturns in economic conditions generally, and in the
medical devices markets, risks associated with costs and delays posed by
government regulation, limitations on third party reimbursement, inability to
protect proprietary technology, potential product liability and other risks
detailed in the Corporation's filings with the U.S. Securities and Exchange
Commission. All financial figures are prepared in accordance with Canadian
generally accepted accounting principles (GAAP) and are expressed in Canadian
dollars.
World Heart Corporation
Highlights of Financial Information (Unaudited)
(Numbers in thousands, except per share data)
March 31, March 31,
2000 1999
Expenses:
General and administrative $(1,760) $(1,098)
Research and development $(3,120) $(1,761)
Total expenses $(4,880) $(2,859)
Investment income $321 $155
Net loss $(4,559) $(2,704)
Basic and fully diluted loss
per common share $(0.32) $(0.22)
Shares used to compute basic
and diluted loss per share 14,293,340 12,282,257
-0- 04/25/2000
For further information: Ian W. Malone, Chief Financial Officer - World Heart Corporation Tel.: (613) 226-4278, Fax: (613)
226-4744, E-mail: ian.malone@worldheart.com |
