Heartware's Q3 revenues jump 41 percent

November 5, 2009 by MassDevice staff

The Framingham, Mass.-based heart pump manufacturer also sees big improvements to its cash position, operating and net losses during the third quarter, compared with the trailing three months.

Sequential revenues at HeartWare International Inc. grew 14.6 percent to $3.4 million during the three months ended Sept. 30.

The Framingham, Mass., manufacturer of militarized heart pumps began limited sales late last year, after receiving an investigational device exemption from U.S. regulators in Sept. 2008. That means a comparison year-over-year results is misleading, as total 2008 sales reached only $332,000.

The HeartWare Ventricular Assist System was approved for commercial sales throughout most of Europe in January.

HeartWare significantly narrowed both its operating and net losses during the third quarter, compared with the previous three months. It cut operating losses by roughly 41 percent, to $3.4 million from $5.8 million during the June quarter. Net losses, meanwhile, declined to $5.9 million from $6.8 million, a 16 percent improvement over the prior quarter.

Through the first nine months of 2009, the company had a total net loss of just under $19 million on $11.95 million in sales. HeartWare has spent about $10 million so far this year on research and development — making up about half of its 2009 net loss.

"We are making the necessary investments in our operating infrastructure, staffing and clinical trials so as to lay the foundation for our continued growth," CEO Doug Godshall said in a statement.

HeartWare also sharply improved its cash position during the quarter, with $31.4 million in available funds on hand at the end of September. In August, the company completed a new financing package with institutional and individual investors, banking $29.8 million of the $60 million private placement soon after the Aug. 11 closing. The other half hit in late October, after shareholders overwhelmingly approved the deal.

HeartWare had less than $6 million in cash on hand at the end of June. The company also identified several of the new participants in the private placement earlier this week, including affiliates of T. Rowe Price, John Hancock and TD Investments and several private equity funds specializing in healthcare investments.