Thoratec expands MCS portfolio with innovative catheter pump technology

Thoratec Corporation (Nasdaq: THOR), a world leader in device-based mechanical circulatory support (MCS) therapies to save, support and restore failing hearts, said today that it has acquired an innovative catheter pump technology that it plans to use in the development of a minimally invasive, acute cardiac axial flow pump that can be delivered percutaneously in the cardiac catheterization lab and operating room.

Thoratec is paying a cash purchase price of $8.5 million to Getinge AB (Stockholm: GETIB) for the technology, which will be recorded as an expense in the first quarter of 2010.  The company expects to incur incremental development costs of up to $3 million in 2010.  Overall financial guidance for 2010 will be provided during the upcoming fourth quarter earnings call.

"This technology represents a compelling opportunity for Thoratec as we broaden our leadership position in MCS therapies. There is an unmet need for a device that can provide fast and minimally invasive acute cardiac support for hemodynamically unstable acute myocardial infarction, high risk percutaneous coronary intervention and post-cardiotomy patients. Given its potential ability to provide greater flow at a smaller size than other existing devices, we believe this technology offers the potential to be the basis for a breakthrough offering in this very significant market," said Gary F. Burbach, president and chief executive officer of Thoratec.

"We will be using our proven competencies in MCS while adding to our research and development team to advance this product development program. As we move toward expected commercialization in the next several years, we anticipate our clinical, regulatory and market development capabilities will help us achieve regulatory approval and commercial adoption of this technology," he added.

Known as PHP (Percutaneous Heart Pump), the device is an axial flow pump which is inserted through an 11 French introducer sheath that is expandable to 21 French, with an elastomeric, collapsible impeller and cannula that is driven by an external motor via a flexible drive shaft. In a laboratory setting, the device has generated greater than 4.5 liters per minute of flow against normal physiological pressures.

"We already have a very robust product pipeline that includes continued enhancements to our HeartMate II® platform, including the recently announced smaller version of the HeartMate II, and our fully magnetically levitated HeartMate® III. This transaction provides a unique opportunity to develop a device that complements and expands upon our existing MCS offerings," Burbach said.