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Biotech / Medical : World Heart Corp - WHRT and TSE/WHT -- Ignore unavailable to you. Want to Upgrade?


To: Dan Hamilton who wrote (196)1/22/1999 3:03:00 PM
From: the Chief  Read Replies (1) | Respond to of 500
 
World Heart plans to tap
huge market

Garry Marr
Financial Post

In the race to create the world's first permanent artificial
heart, investors have been betting on World Heart Corp. to
finish first.

The Nepean, Ont.-based company's plan to implant its
HeartSaver Ventricular Assist Device in a human this year
has some company watchers saying World Heart is in the
lead to capture what could be a multibillion-dollar
market.

It was that kind of optimism that created a buying frenzy
this week, driving up the stock to $26 on Monday when
World Heart released its yearend results. But by
Wednesday's close, the stock had fallen back 34.6%.

World Heart bounced back in Toronto yesterday but lost
more ground in New York trading.

The shares (WHT/TSE) jumped 50¢ to $17.50 in Toronto
but on the Nasdaq Stock Market they (WHRTF/NASDAQ)
lost 21/64 to close at $11 19Ú64 (US).

"There's nothing specific driving the price but growth
stocks with significant value potential ahead of them in
the next 12 to 24 months seem to be garnering a lot of
investor attention," says Michael Lorimer, an analyst with
Scotia Capital Markets.

World Heart on Monday said the initial phase of the final
pre-clinical tests of the artificial heart began this month
and, subject to Health Canada approval, it would conduct
its first human implant this year.

With no significant revenue, World Heart says it expects
to record a loss of $3.7-million (30¢ a share) in 1998,
down from a loss of $9.4-million (93¢) in 1997.

Its results will be released next month.

The company is not predicting any notable operating
revenue in 1999 either and it expects expenditures to rise
to $12-million ($1) for the year -- the cost of pre-clinical
trials and initial clinical use.

World Heart's history dates back to 1989 when the
Ottawa Heart Institute began working on a device under
the Canadian Artificial Heart Program. About seven years
later, the school had developed a working model of
HeartSaver. In 1996, Rod Bryden, majority owner of the
National Hockey League's Ottawa Senators, and Michael
Cowpland, chief executive of Corel Corp., bought the
rights to the artificial heart and formed World Heart.

Medical experts say HeartSaver's strength is its
energy-transfer system. It uses electromagnetism to allow
it to avoid the usual external wires that penetrate the skin
in traditional implants and can cause infection.

A small, battery-powered coil is taped to the chest, with
energy transmitted through the skin to an adjacent coil
implanted in the body that feeds power to HeartSaver.

"This is the first time their device will go into humans and
that's a very large event for a development stage
technology company," says Scotia Capital's Mr. Lorimer,
about the recent investor excitement. "The market now has
more visibility as to World Heart's timeline."

The company reported its first commercial revenue in the
period ended Sept. 30, 1998 -- a meagre $19,062 from the
sale of an energy transfer system to an international
medical devices company.

World Heart doesn't expect to record its first profit until
2001, the first full year of sales.

Mr. Lorimer believes at "these prices" investors have fixed
into their equation the device being hooked up to a human
in 1999. The guessing game is in determining today's stock
price on tomorrow's revenue.

"You do what you call a risk-adjusted discounting model,
which is a fancy way of forecasting how the whole thing is
going and discount it back to a present value," he says.

The risk adjustment is how much of a discount you use in
calculating those earnings.

"We use venture capital rates and that's about 40% to
50%," says Mr. Lorimer, adding he is forecasting
$87-million in gross sales in 2001 and $195-million in
2002.

Of course, World Heart is not the only game in town.

In the United States, Thoratec Labs Corp., Thermo
Cardiosystems Inc., and Abiomed Inc. have all developed
temporary or bridge-to-transplant heart devices.

Since World Heart has not developed such a device, Mr.
Lorimer says it is behind those companies in one sense but
is leading in the development of a permanent artificial
heart.

"World Heart is going after the significantly larger
alternative transplant device," says Mr. Lorimer.

At $50,000 (US) a HeartSaver and about 40,000 or 50,000
patients in the United States identified as needing a new
heart, the potential is huge. Only about 2,500 transplants
are performed each year in the United States.

The primary heart transplant market, which includes the
United States, Canada, and Europe, is estimated to be
worth $5-billion (US). That is 100,000 patients at
$50,000 each.

Still, Mr. Lorimer rates World Heart a venture stock with
all the risks that come with that term.

He has a $24 one-year target price on its stock and $50 for
two years, both of which were set last November.

Jean-Luc Berger, an analyst with Credifinance Securities
Ltd., shares the view of high risk and high reward with the
company. "Overall risk assessment is high but the
successful completion of the pre-clinical studies of the
HeartSaver will lower the risk," he writes in his latest
report on the company.

With only about 12.2 million shares outstanding, he notes
there is "limited share dilution", despite all the years of
research and development. "The company is at an
important and exciting stage of growth, targeting an
unmet medical need in an untapped market characterized
by superior growth," Mr. Berger says.

WORLD HEART CORP.

CEO: Roderick Bryden

Ticker: WHT

Listed: Toronto Stock Exchange

Head office: 1 Laser Street, Nepean, Ontario.

K2E 7V1

Telephone: (613) 226-4278



To: Dan Hamilton who wrote (196)2/16/1999 9:53:00 PM
From: Dan Hamilton  Read Replies (1) | Respond to of 500
 
Here's an interesting (lengthy!) piece on LVAD's and their current and potential uses. I hadn't come across the possibility of a heart muscle atrophying from use of a LVAD before. That's one to check out with World Heart...

Researchers seek more bridges to
cross with mechanical pumps

From CHF Disease Management | February 1999

Will left-ventricle assist devices span from CHF to recovery?

The day is coming, researchers say, when mechanical pumps will offer CHF
patients a range of options for improvement and recovery.

Refinements continue to be made in using left-ventricular assist devices
(LVADs) as a bridge to transplantation. But investigators now want to find out
how they can offer the devices to more patients — such as those who are not
transplant candidates because of their advanced age or degree of heart
disease.

And today's tantalizing but rare cases of patients being weaned from their
LVADs hint at a time in the future where doctors can use a pump to let a
failing heart rest and heal until it can work well on its own again.

Getting to these goals, and crossing what some doctors call "a bridge too
far," means pushing the limits of the technology and running the trials.
Investigators are optimistic.

"You might decide that today's pumps are not right for you and your patients,"
says Mehmet C. Oz, MD, an LVAD researcher and cardiothoracic surgeon at
Columbia-Presbyterian Medical Center in New York City.

"But with the advances being made, you should see a pump that's right for
you within a decade," he explains.

Buying patients more time as they await transplantation is a huge niche for
LVADs to fill. Recent published reports determine only 2,500 organs are
available each year to some 60,000 patients who need them or some type of
mechanical help. And in 1996, more than 10% of the transplantation
candidates died waiting for a new heart.

What about those not up for transplants?

Oz says doctors should be thinking about when LVADs may be appropriate
for their patients today, whether or not they're on the transplant list.

"The first rule of thumb is that no one should die of heart failure without being
considered for heart pumps." That doesn't mean giving one to every patient,
Oz notes, but rather, thinking about how a patient can be treated with an
LVAD after traditional therapies are ruled out with a line of questioning such
as the following:

1. Does the patient have a problem that can be repaired, such as aortic or
mitral valve disease or an aneurism?

2. If there isn't a physical defect that can be targeted for repair, can the
patient's heart failure be controlled with medication?

3. If medication cannot keep the patient's condition stable, could
transplantation be implemented to reverse the patient's declining
cardiovascular performance? (In this case, a heart pump can help sustain
the patient until a permanent organ becomes available.)

4. If the patient is not a transplantation candidate, could an LVAD be used?
(Today, patients can be part of the clinical trial testing the devices when other
options are not appropriate or can no longer be helpful by themselves.)

This last consideration may not sit well with some doctors, who may feel that
if a patient is not up to the surgery and recovery from transplantation, he or
she would not benefit from using an LVAD.

But Oz says his team is learning how LVADs can be helpful to these patients.
The researchers have a $7 million government grant for their REMATCH
study (Randomized Evaluation of Mechanical Assistance for the Treatment of
Congestive Heart failure). Oz says patients have to apply to participate in the
study, but for those who are not transplant eligible, an LVAD may provide a
treatment option.

How long on an LVAD?

Two end points in heart pump therapy are crystal clear:

transplantation;

infection requiring removal.

In other cases, knowing when to stop using the LVAD is not as certain. Oz
says there will be a growing number of patients not going on to transplant
who will continue with their device, incorporating other treatments such as
surgery and drug therapy to improve their heart performance.

And researchers also are looking at the chances of using the LVAD to help
the patient's own heart recover enough to work on its own. This role is called
a bridge to recovery.

In 1997, German investigators reported in Circulation (1997; 96:542-549) that
they were able to wean a third of their 17 patients from their LVADS.

"We haven't been able to reproduce their results," Oz says. In a recent article
in Circulation (1998; 98:2,383-2,389), his team reported a retrospective study
and an explanation evaluation that used exercise tolerance as an indicator of
success.

The team found that among 111 LVAD recipients being bridged for
transplants since 1991, only five were explanted. In three of these instances,
the devices were removed because of infection. The other two patients had
their LVADS removed because they were not going on to transplantation: one
after 186 days and another after two years.

Of these five explant cases, two died three months after explantation. Two
patients needed reimplantation after being without them — one after two
years, the other after 170 days. The fifth patient was still alive in class I CHF
after 15 months without the device.

In the second part of the study, 39 recent LVAD recipients were considered
for explantation, according to how well they could exercise with their LVAD
output reduced to 20 cycles per minute. Seven of the 39 patients were able to
exercise at this rate of assistance and still keep stable hemodynamics. One
was able to be explanted.

Oz says the Germans' success may be due to the way Europeans wean their
patients off the LVAD three months after implantation. The practice may be a
good idea because researchers still have a lot to learn about how the heart
responds to its mechanical helper and how long the partnership should last.

It's possible that patients reach a point where the heart pump no longer
works well with the compromised heart. A device could even cause atrophy in
the heart muscle, depending on its synchrony with the ventricle as it contracts
and relaxes.

More research is needed, Oz says, to determine how long a patient should
use the heart pump, whether or not weaning should begin, and how weaning
should be done.

Right now, he says his team does not implant LVADs with the intention of
weaning patients off of them. Nearly all the heart pumps used now are
bridges to transplantation. Oz notes he recently had a case where a patient
had a massive heart attack and an LVAD was used as part of his overall
treatment, but those situations are not as common.

Other physicians see three standard uses for an LVAD, including helping
patients who suddenly run into trouble, says Ross Zimmer, MD, a
Philadelphia cardiologist with the joint heart failure program at Presbyterian
Medical Center and the Hospital of the University of Pennsylvania.

These uses are:

A device can sometimes help patients who suffer complications
during surgery.

An LVAD is used as a transplantation bridge (the most common use).

LVADs are used in a clinical trial.

Research will bring more uses for device

The editors commenting on Oz's study in Circulation note they hoped
clinicians would one day be able to assess how a failing heart has been
damaged on a cellular level — and whether the damage is reversible. This
would give clinicians an indication of which hearts may go on to heal if given
some mechanical assistance.

Oz says it would be even more helpful to understand the cellular changes of
the heart so they can be reversed long before treatments like heart pumps
are needed. Answers may come from looking at how patients may not be
metabolizing free fatty acids or calcium properly. Harvesting heart tissue from
deceased CHF patients could allow scientists to probe the mitochondria and
hunt for missing or defective genes, which could lead to a whole new arsenal
of cardiovascular genetic therapies.

Until that point, doctors say LVADs have a role in treating CHF.

"I hope that as [LVADs] become more common, they are developed not just
as a bridge but as an alternative to transplant," says Jim Fitzpatrick, MD,
clinical assistant professor of medicine in the division of cardiology at
Thomas Jefferson Medical Center in Philadelphia. "The economics are
staggering."

He says last year, Jefferson implanted two LVADs into CHF patients as
bridges to transplantation. The site is not a transplantation center, so the
patients continued with treatment at other centers to get new hearts.

And patients can find some reassurance when they learn that LVADs can
help during the wait for a heart, says Zimmer: "It's nice psychologically for
patients to know that it's there."

Editor's note: For more information about the LVAD study and to learn how to
become involved, call (888) REMATCH.

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