MicroMedical loss 'expected'

Artificial heart developer MicroMedical Industries (ASX: MMD) has forecast a larger full-year loss than it experienced last year, but said it was an expected outcome.

The company explained the losses were largely a result of the commencement of the commercialisation of its third generation Left Ventricular Assist Device (LVAD) artificial heart.

The losses were also attributed to a restructuring of MicroMedical's cardiac equipment monitoring business.

In 2000, the company's net consolidated losses topped $3.2 million.

Chief executive officer Michael Spooner would not say what the losses to June 30, 2002, would be, refusing to given even a percentage increase on last year.

"From my perspective, what I am looking for the market to understand is not, 'let's hold off looking at MicroMedical until it has gone through the process and completed everything', because then it will be too late," Spooner said.

"We want people to focus on each of the milestones we have set as we go through."

Spooner said the company should not be seen as a research and development company as it had already finished that phase.

"Now we're going through the clinical trial process, we have raised over $17 million to propel us through the first stages and we're on track doing all the right things we should be doing," he said.

"We're pleased with how we are going and I think the market expects us to spend this money to get through the clinical trials as quickly and as wisely as we can."

In February the company announced it had begun commercialising its VentrAssist artificial heart, with the first human implants scheduled for later this year.

"The market for VentrAssist is independently and conservatively estimated at between $US7.5 and $US12 billion a year," Spooner said.

"VentrAssist has the potential to become as commonplace and reliable as pacemakers."

With regard to the company's cardiac equipment monitoring business, MicroMedical said its restructure was in response to challenging market conditions.