Investors wary as Ventracor trading recommences

Investors were spooked by uncertainty at Ventracor (ASX:VCR) today, with shares dropping 6 per cent to AUD$1.50 by press time as the artificial heart maker recommenced trading following Friday's trading halt.

The halt was called by Ventracor in the wake of a report in last Friday's Sydney Morning Herald which suggested that a trial of the company's VentrAssist implant had been delayed while the Alfred Hospital reviewed the device following the death of one of the patients in the trial earlier this month.

The article quoted hospital spokesperson Trisha Lee as saying that "the review could take as long as a coronial inquest -- up to two years -- although it would probably be less."

Ventracor confirmed this morning that following a meeting between the company and the hospital, the pilot trial -- which is currently at the halfway mark -- would be continuing.

"Ongoing reviews are part of the agreed clinical protocol," the company said in a statement today. "The data indicates the VentrAssist system performed to specifications in all patients. However, it is not clear whether or not the deaths are entirely unrelated to the implantation or performance of the system."

Ventracor CEO Dr Colin Sutton said the company planned to commence a global pivotal trial -- the next stage after a pilot trial -- in hospitals in Australia, New Zealand and UK in July this year. An international team of medical investigators for the pivotal trial is meeting in Sydney today. Data from the pivotal trial will be used to support Ventracor's bid for European CE Mark status.