World Heart wins over gov't for remaining $3-million
2003-05-22 16:32 ET - News Release
Dr. Tofy Mussivand reports
WORLD HEART CORPORATION TO RECEIVE REMAINING $3M FUNDING FROM TECHNOLOGY PARTNERSHIPS CANADA INVESTMENT
World Heart has disclosed that Technology Partnerships Canada (TPC) has agreed to amend its partnership agreement in order to complete the remaining $3-million disbursement under its November, 2001, investment in support of World Heart's HeartSaverVAD development program.
TPC has provided to World Heart a letter indicating willingness to consider a further investment of up to $9.98-million, subject to TPC's formal approval process, to support continued development, testing and trials of HeartSaverVAD.
World Heart reported in Stockwatch news on Aug. 21, 2002, that it had decided to merge the HeartSaverVAD and HeartSaverVAD II programs into a single release of an optimized product. These technologies were then integrated with the patented technologies of Novacor LVAS and Novacor LVAS II to formulate the optimized HeartSaverVAD, resulting in a change in the scope of the program being supported by TPC.
As consideration for TPC's approval of the amendment, World Heart has agreed to modify royalties payable to TPC. Effective Jan. 1, 2004, a royalty will be payable on net revenues, to a maximum which permits TPC to recover approximately the same rate of return as under the original agreement.
During the next several weeks, as the HeartSaverVAD program advances, World Heart will work with TPC to define the scope and basis for a subsequent investment and to seek formal approval.
It is estimated that the global market for World Heart's heart assist products exceeds 100,000 patients annually. In Canada alone, an estimated 25,000 people die every year where heart failure is the principal or contributing cause of death. Many of these patients could benefit from receiving safe and effective circulatory support from a heart assist device.
"World Heart believes that its next-generation HeartSaverVAD will be a leading therapy for a large, unmet clinical need, due to its small physical characteristics that don't compromise its ability to deliver full pulsatility," explained Dr. Tofy Mussivand, WorldHeart's chairman and chief scientific officer. "We are heartened by the government of Canada's continued long-term support of our technology."
About Technology Partnerships Canada (TPC)
TPC is a technology investment program established in 1996 to contribute to the achievement of Canada's objectives of increasing economic growth, creating jobs and wealth, and supporting sustainable development. TPC supports and advances government of Canada objectives by investing strategically in research, development and innovation in order to encourage private sector investment, and so maintain and grow the technology base and technological capabilities of Canadian industry. TPC also encourages the development of small- and medium-sized enterprises (SMEs) in all regions of Canada.
WARNING: The company relies upon litigation protection for "forward-looking" statements |
