Summer Street still bullish on Sunshine Heart after HeartWare/CircuLite deal

HeartWare (HTWR -0.7%) has acquired CircuLite, maker of the SYNERGY system which treats ambulatory chronic heart failure patients.

The deal is for $30M ($18M in HTWR stock and $12M in cash).

Here's HTWR CEO Doug Godshall: "The partial-support system developed by CircuLite represents the industry's most intriguing platform for the treatment of patients with earlier stage heart failure." (PR)

This raises some rather obvious concerns for Sunshine Heart (SSH -0.7%) and the C-Pulse system.

"Circulite, like SSH, focuses on circulatory support for patients that have failed resynchronization therapy but are not yet sick enough for LVAD. This is a large market which we detail extensively in our SSH reports. Circulite is slightly ahead of SSH in commercializing their products in CE-Mark countries but have also run into problems and have had to pull the product," Summer Street's Mark Landy says, reiterating a Buy rating on SSH.

"The main differences between Circulite and SSH are that Circulite's products are pumps that 'touch the blood' whereas SSH product does not and that Circulite's products are implanted in hybrid cathlab whereas SSH products as of now require surgery procedure in OR," Landy adds. SSH price target reiterated at $16.

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Comments (5)
  • 166649
    , contributor
    Comments (382) | Send Message
    SSH versus Heartware ...there is a much greater difference in the technology than the clip described.


    Recall the approved NYSCHFIII study was to include all three.. HTWR didn't make the cut so it was left to THOR and SSH. Now only SSH ... since THOR causes blood clots AND they knew and didn't notify FDA ... the Clinicians did.... horrible!


    SSH's German "Pdufa" is in February .... wait until then .... there are several European centers ready to go.


    Rosa actually comments in his last presentation that many institutions were not really interested in SSH ... they were already committed to THE LVAD units ...


    he then went on to say that "NOW, these US Clinicians were coming back to SSH" ... SSH is presenting this week -In Europe
    2 Dec 2013, 02:39 PM Reply Like
  • coolhand79
    , contributor
    Comments (359) | Send Message
    Sunshine Heart needs only 1% of the EU/US Class III CHF market to have a market cap in the billions.


    Competition for Class III patients is likely to happen but a monopoly isn't necessary.


    Regarding the HTWR quote: "The partial-support system developed by CircuLite represents the industry's most intriguing platform for the treatment of patients with earlier stage heart failure."
    As HTWR also use a similar technology in their LVADs, it makes sense that they see the future of VA devices being blood-contacting pumps. If they thought the C-Pulse method was the way forward, they'd be developing a similar technology and hailing the C-Pulse as the "most intriguing platform".
    2 Dec 2013, 04:26 PM Reply Like
  • sa_member_756157
    , contributor
    Comments (1364) | Send Message
    But this is what we sensed was happening, and there must be a problem with patent. Least that's what we think.. ('we' being my more well educated partner who works in industrial sector.._)


    So now its a matter of who gets to market share first, and what areas of the world Sunshine Heart versus CircuLite get to ship their product to. There could be a performance difference.


    We contributed (a loss) after investing our small amt. in SSH. Good luck to all, may you get the return we didn't get.
    17 Dec 2013, 09:27 AM Reply Like
  • coolhand79
    , contributor
    Comments (359) | Send Message
    "There must be a problem with the patent"? What do you mean and where is your source? Would you like to see my source that one of SSH's founders is/was a patenter?


    Who gets to market first? This sounds like scare-mongering. SSH need 1% of the Class III CHF market to become a multi-billion-dollar company. Do you really think a competitor is going to steal 100% of the market, especially with an apparently inferior product?


    Say this investment becomes a worthwhile venture, and for our $10.50 we eventually see $25-$50. I doubt we will bemoan the fact that it fell back to $7-$8 for a while..
    17 Dec 2013, 11:25 PM Reply Like
  • coolhand79
    , contributor
    Comments (359) | Send Message
    I'm still awaiting some objective criticism of SSH and/or the future of the C-Pulse, but so far I'm met only with sloppy messages full of worry and doubt.


    I'm not trying to be unpleasant, I would sincerely like to read a well-written criticism of SSH that illustrated issues thus far unmentioned...
    17 Dec 2013, 11:29 PM Reply Like
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