Two VADs Beat As One: HeartWare Completes World Heart Acquisition

In short

Circulatory support device company HeartWare International, Inc., has announced the closing of the acquisition of World Heart Corporation for a reported $8M in common stock, following the approval of the transaction today by World Heart stockholders.

Background

We most recently covered HeartWare back in April when it was announced that the company’s Ventricular Assist Device had gained a positive response from FDA’s expert panel. HeartWre’s miniaturised implantable heart pumps, or ventricular assist devices are intended to treat Class IIIB / IV patients suffering from advanced heart failure. The HeartWare® Ventricular Assist System features the HVAD® pump, a small full-output circulatory support device (up to 10L/min flow) designed to be implanted next to the heart, avoiding the abdominal surgery generally required to implant competing devices.

By acquiring World Heart, HeartWare has achieved the double whammy of taking out a potential competitor while absorbing its no doubt valuable intellectual property. As the attached image shows, World Heart hasn’t been exactly coy about making favourable comparisons of its technology (MiFlow) with that of HeartWare (HVAD), but it’s easy to see how the products might sit in a portfolio.

Under the terms of the deal, each share of World Heart common stock has been converted into the right to receive 0.003 shares of HeartWare common stock.

Company comments

“We are pleased with the pace of this transaction and anticipate moving quickly to integrate World Heart,” said Doug Godshall, President and Chief Executive Officer of HeartWare. “Consistent with our goal to be a leader in the VAD market for years to come, we believe that bolstering our patent portfolio and adding World Heart’s technologies broadens our options for the future.”

Regulatory status

HeartWare has received CE Marking for the HeartWare System in the European Union and TGA approval in Australia.

The device is currently the subject of United States clinical trials for two indications: bridge-to-transplant and destination therapy.

Source: HeartWare International Inc., PR Newswire