WORLD HEART CORPORATION ANNOUNCES RESULTS FOR THE SECOND
QUARTER OF FISCAL 1998
OTTAWA, Ontario, Canada, July 24 /CNW/ - World Heart Corporation
(''WorldHeart'' or the ''Corporation'') today announced results for the second
quarter of fiscal 1998, which ended on June 30th. All financial figures are
expressed in Canadian dollars and are prepared according to generally accepted
accounting principles in Canada.
As expected, no revenues were earned in the second quarter of 1998,
unchanged from the corresponding period last year. Net loss for the quarter
was $922,671 or $.09 per share, compared with $2,955,804 or $.29 per share for
the same quarter in 1997. Net loss for the six months ended June 30, 1998 was
$1,769,867 or $.18 per share, compared with $4,836,237 or $.48 per share for
the corresponding period in 1997. The reduced loss for the six month period
reflects research and development expenses of $433,789 or $.04 per share
compared with $3,760,812 or $.37 per share for the same period in 1997. This
reduction in research expenditures is a result of changes made in the timing
of research payments under a research agreement with the Cardiovascular
Devices Division (CVD) of the University of Ottawa Heart Institute Research
Corporation, an affiliate of the University of Ottawa Heart Institute. There
has been no effect on the level of research and development activity in the
Corporation. This reduced rate of loss is expected to continue through 1998.
Cash and cash equivalents of $2,790,031, restricted cash of $13,168,029,
and cash pledged as collateral for a capital lease of $784,000 are expected to
fund WorldHeart's requirements through 2000, including research and
development costs under WorldHeart's research agreement with CVD. All funds
included in restricted cash at June 30, 1998 became available to the
Corporation on July 21, 1998.
In commenting on the second quarter results, Roderick M. Bryden, Chairman
and CEO, said: ''In the absence of revenues as a measure, the following second
quarter events provide an indication of the progress of the Corporation toward
revenues and profit:
Research and Development
- HEARTSAVERvad(TM) volume reduction completed, reducing overall volume
by 11%.
- Cannulae designs completed.
- Prominent American cardiac surgeon, Dr. Mehmet Oz of Columbia-
Presbyterian Medical Center, New York, joined the Clinical Advisory
Board.
Manufacturing
- First pre-clinical HEARTSAVERvad(TM) manufactured in WorldHeart's plant
and commenced bench testing.
- Components produced in-house, including the Energy Converter, Blood
Sac, Pumping Diaphragm, and Volume Displacement Chamber.
- Titanium housing and custom ASIC engineering completed and in
production.
Our progress continues to be consistent with first human implant in
1999''.
The Corporation continues to focus its activities on completing the
development and commercialization of HEARTSAVERvad(TM), the first pulsatile
ventricular assist device that is fully implantable in the human chest,
alongside the natural heart, and remotely powered and monitored.
HEARTSAVERvad(TM) users will have no breaks in the diaphragm or the skin and
will be able to return to near normal life activities. Clinical trials are
scheduled for 1999 and full-scale commercial production is targeted for 2001.
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 University of Ottawa
Heart Institute Research Corporation, an affiliate of the University of Ottawa
Heart Institute. WorldHeart is a public company whose common shares trade on
the Toronto Stock Exchange (ticker symbol: WHT) and The Nasdaq SmallCap Market
(ticker symbol: WHRTF).
Any forward-looking statements in this release are made pursuant to the
safe harbour 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.
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