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

|By:, SA News Editor

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.