WorldHeart to Acquire MedQuest

In a transaction that will improve the company's ventricular assist device (VAD) platform, WorldHeart (Oakland, CA, USA) has agreed to acquire MedQuest Products, Inc. (Salt Lake City, UT, USA).

The acquisition will add an advanced rotary pump to WorldHeart's VAD platform and result in the company raising up to U.S.$23 million in a corresponding private placement and warrant exercise. In addition, all existing debentures will be converted to common shares of the company.

MedQuest is in the final development stage of the HeartQuest VAD, a magnetically levitated centrifugal rotary blood pump. Currently, WorldHeart offers a long-term left ventricular assist system (LVAS) called Novacore. The acquisition and financing will permit WorldHeart to accelerate the development of both next-generation systems. Preclinical animal and bench testing of the HeartQuest are already under way. Development of the Novacore II will continue in parallel, with animal implants scheduled to begin in 2005.

As part of the acquisition, MedQuest employees in Salt Lake City will be retained by WorldHeart. The operations in Salt Lake City will serve as the development and manufacturing site for the rotary pump products of WorldHeart.

"WorldHeart will now be the only company with small, silent next-generation pulsatile and rotary systems under development, as well as having the most durable and reliable current-generation pulsatile device on the market today,” remarked Jal S. Jassawalla, president and CEO of WorldHeart.





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