Forum Archive Index - October 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

Readers,

 

We are expecting the Annual report on 16 Oct. 2001 followed by the Annual meeting on 10 Nov. 2001. Let us hope that those two events will kick some life in the present 59 cents share price!

 

 MMD website: < www.micromed.com.au >.

This post is not a substitute for the contents of the MMD web site and the reader must go back to that site to obtain the true statements or facts or any other matter pertaining to MMD.

I cannot be held responsible for any omissions, misstatements or any misinterpretations by myself or by any reader, in this post. Readers are not asked to buy, hold or sell MMD shares; to do so will be entirely at their own risk!

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MMD has two divisions:
1. The e-Health division. Their ECG readers are being used by staff to certify a heart attack by any passengers in planes.

The readings are transmitted to earth via satellites and medical staff can then issue instructions back to the plane.
These readers can also be used in doctor's rooms and the results stored on a computer.

MMD is working on a device not much bigger than a pack of playing cards; it will be carried in a pocket and will replace the stethoscope.

This PDA or Personal Digital Assistant will be able to record diagnostic quality ECG's during hospital ward rounds.
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2.The " Artificial Heart "
This pump ought to be imminently suitable " as a bridge to recovery " and will then be connected to the patient for a limited time only.

It could also be used on a permanent basis. The market is estimated at some $US 12 Bill./year and 800,000 people in the US alone suffer from end stage heart failure.

The artificial heart is one of 5 rotary devices currently being used in trials. MMD considers theirs of superior quality as it has only one moving part, the impeller:

" The impeller of this device, also called " Artificial heart", or " VentrAssist ", actually " floats " in the blood. It is pumping and does not require contact bearings nor shafts nor seals ".

" Because it is hydrodynamically suspended, the impeller of our rotary blood pump is a substantial technological advantage over the much more complex electromagnetic suspension systems incorporated into other rotary blood pumps currently under development by competitors ".

The CEO of MMD said that " hydrodynamic suspension offered simplicity, reliability and increased device longevity "

Normally, there are two related risks encountered by a patient wearing any " Artificial heart " device:

(A)The number of moving parts and the corresponding longevity of the device. The MMD's, unlike the others, has only one moving part and therefore is long lasting. It is a revolutionary device!

(B): The degree of destruction of blood platelets and the consequential creation of blood clots, a real worry for patients and surgeons alike!

One can say that as the number of moving parts increase, the greater the chance that this destruction of blood platelets increases.

The MMD device has only one moving part, the impeller. Through refinement of this part, MMD is now getting to the stage where this effect " is difficult to measure ".

These are two big positives in this exacting device!
Adding to that is the small size of the artificial heart - the size of a child's fist - and one readily understands that many patients are awaiting the successful completion of any human trials!

These are to start at the beginning of 2002. 

The device is made of titanium and has electromagnetic coatings. Late last year, vibration tests were applied to this device, using an earthquake simulator.

The CEO of MMD said that " The artificial heart had operated exceptionally well in several such animal trials over the past year.

These tests have enabled us to further refine performance and reduce in size what we believed was already an excellent device ".

" With our artificial heart implanted, people who were previously so debilitated that they were unable to get out of bed, will be able to enjoy a normal life, apart from having to wear the artificial heart's battery supply on their waist ".

The CEO of MMD, Dr Woodward said that following an Australian patent, a US patent was obtained in May 2001.

" This patent give the rights to commercialise the patents for all applications."

Planned human trials will be held in the Alfred Hospital in Melbourne; it has a high standing in the world.

The CEO of MMD, Dr Woodard " was previously in charge of the blood path design team for the current version of the NOVACOR heart assist- device ": See page 15 of the 2000 Annual Report.
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Markets.

There are two distinct markets for Artificial Heart devices:

1. A device which completely replaces the patient’s current heart. Normally, this patient would be the recipient of a transplant.
Abiomed Inc.( ABMD ) has produced such a device, weighing over 1 kg., a large sized object which can only be fitted to a grown-up person. This device is being trialled and will be expensive. The market for this device is about $US 1 Bill.

2. The “ Heart Assist “ device, discussed previously. Arising from heart attacks, this device will be connected to an existing heart for a shorter or much longer period. It can give the heart time to recover; reports indicate that up to 40 % of patients recover after only three months on an artificial heart.

The device can be disconnected when wanted and the patient will continue to live his/her normal life.

A few of these devices will be trialled in the next two years, however, as mentioned before, the MMD’s “ VentrAssist “ device is radically different and has some very attractive features not shared by other devices.
The market for these Heart Assist devices is some $US 11 Bill. and is rising due to an increasing rate of heart failures. It is a massive market!

MMD hopes to get a large chunk of this market pending the successful outcome of the human trials which are to take place early in 2002. 

Commercialisation could then start in 2003: MMD’s device does not require long periods for testing as is required when testing pharmaceutical products.

 Developments.

MMD has refined their “ VentrAssist “ device which can now be fitted to young persons; it has the size of a child’s fist and blood damage is now minimal ( unlike other devices ) as was shown in extensive and successful animal trials, one lasting over six months. There are additional features:

1. It has the potential to be put in without the patient being on heart-lung bypass. Surgery will therefore be less invasive and therefore will have less risks.

2. Post no. 583 is a News Release from MMD and it mentions that a sheep implanted with this device has given birth to a healthy male lamb. This gives new hope to pregnant patients who cannot tolerate risky anticoagulants which need to be used with other Artificial Hearts.

MMD has secured another US patent. This covers all aspects of its device.

MMD already has a second - generation product in mind that will be made of plastic and will cost about a quarter of the current price of the titanium one ( which costs $ A 60 -100 k ). It will be implanted only for three to six months.

MMD will address the following needs for improvement in subsequent models: At present, the power supply needs to be changed two to three times a day. Cables pass through the skin: a transcutaneous control system ( as ABMD’s device for total heart replacement has, see above ) will be less restrictive and this is being looked at.

Gerry