Positive result for MicroMedical heart device

Manufacturing has begun on the final version of MicroMedical Industries' (ASX: MMD) VentrAssist artificial heart device.

In a progress report issued to shareholders yesterday, the Sydney-based company reiterated the success of its recent human placement trials, during which the device was put briefly inside a patient during open-heart surgery.

Group managing director and chief executive officer, Michael Spooner, described these first human trials as a "significant milestone".

"The results to date are very encouraging and indeed have met or exceeded the benchmarks we set for this important part of the clinical trial process," Spooner said.

He said the VentrAssist left ventricular assist devices (LVADs) were placed in two patients at Melbourne's Alfred Hospital by director of cardio-thoracic surgery, Prof Don Esmore.

Esmore said the small size of the device was a significant improvement over existing first generation models.

"As we expected, the size of the device makes its position in the body flexible," Esmore said.

"It can be placed either in the abdominal wall just below the ribs on the left hand side or in the chest cavity itself."

Spooner said further human placement trials and animal trials would proceed over the next few months, with full human implant trials on track to begin later this year.

He said manufacturing had also begun on the final version of the device, which has included laser welding and diamond coating of the titanium components that are need to help prevent clotting.

"We expect eight devices, which will be used in the clinical trial process, to be fully completed in the immediate future," Spooner said.

He said these devices would be identical to those ultimately made available commercially.

Restructuring needed

On the cardiac e-health division side of the business, Spooner said a strategic review had raised the need for a significant restructuring.

"In order to reposition this division to maximize opportunities in key markets, we have realigned revenue priorities, restructured staffing, lowered administration costs and refocused marketing efforts," he said.

"Whilst revenue flow from this division is stable, our immediate focus is on strengthening channel marketing distribution on a global basis."

He said the company had appointed a business development adviser to help it leverage growth opportunities in the United States and planned to appoint a specialist European business development manager.