WorldHeart Reports Third Quarter 2007 Financial Results



    
    - Levacor(TM) Rotary VAD Advancing Towards U.S. Trials -
    

    OAKLAND, Calif., Nov. 14 /CNW/ -- (Nasdaq:   WHRT, TSX: WHT) -- World Heart
Corporation (WorldHeart), a developer of mechanical circulatory support
systems, today reported its third quarter 2007 financial results.
    Revenue for the third quarter ended September 30, 2007 was $531,000,
compared with revenues of $1,387,000 reported in the third quarter ended
September 30, 2006.  For the nine month periods ended September 30, 2007 and
September 30, 2006, revenues were $2,228,000 and $7,660,000, respectively. The
decrease in revenue resulted from the Company's decision, in the fourth
quarter of 2006, to discontinue the RELIANT Trials and reduce commercial
activities associated with its first-generation Novacor(R) LVAS and to focus
its efforts on the next-generation Levacor VAD, for which commercial sales
have not yet commenced.
    The net loss for the 2007 third quarter was $3,018,000, or $0.26 per
share, compared with a net loss of $7,619,000, or $1.37 per share, in the
prior year's third quarter.  For the nine month period ended September 30,
2007, the net loss was $10,925,000, or $0.95 per share, compared with a net
loss of $14,949,000, or $2.69 per share, in the first nine months of 2006. The
decrease in the net loss for the quarter, compared with the 2006 quarter,
resulted from a non-recurring inventory write-down of $3,600,000 in the third
quarter of 2006 related to the legacy Novacor(R) LVAS product, coupled with
reduced operating expenses and an increase in other income from the Levacor
Rotary VAD clinical product in the 2007 quarter.  The decrease in the net loss
per share for the third quarter and nine month periods of 2007 compared to
2006 resulted from net loss decreasing and an increase in common shares
outstanding resulting from the private placement of common shares during the
fourth quarter of 2006.  The weighted average shares outstanding used to
calculate the loss per share in both years were adjusted retroactively for the
Company's one-for-ten reverse share split in the second quarter of 2007.
    "Following initial clinical success in Europe last year with our Levacor
VAD, we are focused on activities leading to the start of a U.S. feasibility
trial with the Levacor," said Jal S. Jassawalla, President and Chief Executive
Officer of WorldHeart.  "We believe we are making excellent progress in our
development activities and have had discussions with the FDA about our pre-
clinical qualification program and the clinical study design."
    
    Additional Financial Information
    
    WorldHeart's cash and cash equivalents were $2,414,000 at September 30,
2007, a decrease of $9,803,000 from December 31, 2006 and a decrease of
$4,161,000 from June 30, 2007.  Management plans to maintain reduced spending
levels in the near term, while continuing to focus its resources on the
Levacor VAD.  The Company is also fully assessing various financing
alternatives, including equity or debt transactions as well as corporate
collaborations to strengthen its balance sheet.
    Selling, general and administrative expenses for the three months ended
September 30, 2007 decreased by $508,000, or 26%, compared with the same
period in 2006.  For the nine month period ended September 30, 2007, selling,
general and administrative expenses were 33% lower than the comparable 2006
period.  The decrease was due primarily to reduced selling expenses for the
Novacor LVAS product in the United States and Europe.
    Research and development expenses for the three months ended September
30, 2007 decreased by $266,000, compared with the three months ended September
30, 2006.  For the nine month period of 2007, research and development
expenses were $923,000 less than in the first nine months of 2006.  Higher
clinical expenses were incurred in the first quarter of 2006 associated with
the Levacor clinical implants in Europe.  In addition, the Company conducted
development work on both the Novacor and Levacor products in the first half of
2006.  Novacor development work was subsequently discontinued in the fourth
quarter of 2006, with research focused on the Levacor VAD in the first half of
2007.
    
    Recent Events and Highlights
    
    Efforts are currently directed towards completion of pre-clinical
qualification activities in advance of the planned Levacor VAD clinical trial.
Refinements to external system components, intended to enhance system
ergonomics and improve the quality of life of VAD recipients, have been
implemented and are undergoing final testing.  Enhancements to manufacturing
capabilities in WorldHeart's Salt Lake City facility have been completed.
Specific recent activities include:
    
    -- In September 2007, WorldHeart announced a successful chronic animal
       implant of a miniaturized, pediatric, ventricular assist device,
       developed by a consortium including WorldHeart and the University of
       Pittsburgh, and funded by the National Institutes of Health.  The
       PediaFlow VAD design is also the platform for a future minimally
       invasive adult VAD, intended to meet a large clinical need for earlier-
       stage heart failure patients.
    

    
    -- In September 2007, a pre-IDE submission detailing the protocol for the
       US Levacor clinical study was sent to the FDA.  The protocol was
       discussed at a subsequent, productive meeting with the agency.  Key
       discussion points included trial expansion timelines and the patient
       discharge program.
    

    
    -- In October 2007, WorldHeart received a Notice of Allowance from the US
       Patent and Trademark Office, indicating that the pending patent for the
       Levacor's unique low profile inlet port will issue soon.  This key
       feature of the Levacor pump yields an optimized anatomic configuration.
    

    
    -- In the past three months, WorldHeart participated, through
       presentations and exhibits, in numerous recent scientific conferences:
       the Gordon Research Conference on Assisted Circulation; the Heart
       Failure Society of America annual scientific meeting; the Cleveland
       Clinic Heart Failure Summit; the International Society of Rotary Blood
       Pumps; and the Joint Congress of the Japanese Society of Artificial
       Organs and the International Federation of Artificial Organs in Osaka.
    About the Levacor VAD
    
    The Levacor VAD is a next-generation rotary VAD.  It is the only
bearingless, fully magnetically levitated implantable centrifugal rotary pump
in clinical trials.  An advanced, continuous-flow pump, the Levacor uses
magnetic levitation to fully suspend the spinning rotor, its only moving part,
inside a compact housing.  The proprietary levitation technology employs a
unique arrangement of magnetics expected to provide optimal system simplicity
and reliability.  In contrast to pumps with blood-immersed mechanical or
hydrodynamic bearings, full magnetic levitation eliminates wear within the
pump as well as dependence on blood properties for rotor suspension, and is
expected to provide improved blood compatibility by allowing greater
clearances around the rotor and more idealized flow patterns across a wider
range of operation.  The Levacor VAD has been designed with a high safety
profile and robust range of operation to address the needs of current and
future heart-failure patients.
    
    Teleconference
    
    Interested parties may join the teleconference at 8:30 a.m. PST, November
15, 2007, by dialing 866-770-7125 (for North America callers) or 617-213-8066
(for callers outside of North America) and indicating passcode 84868988 at
least 10 minutes prior to the start time.  A telephonic replay of the call
will be available for one week beginning approximately one hour after the
call's conclusion at 888-286-8010 or 617-801-6888, accessed with passcode
51029340.
    
    About WorldHeart
    
    WorldHeart is a developer of mechanical circulatory support systems with
broad-based next-generation technologies.  The Company is headquartered in
Oakland, California, USA with additional facilities in Salt Lake City, Utah
and Herkenbosch, Netherlands.  WorldHeart's registered office is Ottawa,
Ontario, Canada.
    Any forward-looking statements in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995
and include statements regarding the Company's expectations with respect to
the Company's future development plans for its next-generation Levacor VAD and
PediaFlow VAD, including the timing and scope of clinical trials, the
potential scope of use and clinical benefits of these devices, as well as
other statements that can be identified by the use of forward-looking
language, such as "believes," "feels," "expects," "may," "will," "should,"
"seeks," "plans," "anticipates," or "intends" or the negative of those terms,
or by discussions of strategy or intentions.  Investors are cautioned that all
forward-looking statements involve risk and uncertainties, which could cause
actual results to differ materially from those expressed or implied by the
forward-looking statements, including without limitation: the immediate need
for additional financing; delays in development, preclinical qualification,
regulatory approvals and clinical trials, particularly the Levacor VAD;
Destination Therapy adoption rate for VADs; and other risks detailed in the
Company's filings with the United States Securities and Exchange Commission,
including its Annual Report on Form 10-KSB for the year ended December 31,
2006, as amended.



    
    WORLD HEART CORPORATION
    Condensed Consolidated Balance Sheets
    (United States Dollars - in thousands)
    

    
                                         September 30, 2007 December 31, 2006
                                            (Unaudited)
    ASSETS
    Current assets
      Cash and cash equivalents                     $2,414            $12,217
      Trade and other receivables                      463              2,298
      Prepaid expenses                                 847                704
      Inventory                                      1,866              3,088
      Other current assets                             568                750
    Total current assets                             6,158             19,057
    

    
    Long-term assets
      Property and equipment                           582                950
      Other long-term assets                           347                491
    

    Total assets                                    $7,087            $20,498

    LIABILITIES AND SHAREHOLDERS' EQUITY

    
    Current liabilities
      Accounts payable and accrued
       liabilities                                   1,765              3,526
      Deferred revenue and clinical fees                30                470
      Other liabilities                              1,157              1,796
    Total current liabilities                       $2,952             $5,792
    

    Total shareholders' equity                       4,135             14,706

    
    Total liabilities and shareholders'
     equity                                         $7,087            $20,498
    



    
    WORLD HEART CORPORATION
    Condensed Consolidated Statements of Operations
    (United States Dollars and shares in thousands except per share amounts)
    

    
                                     Three Months Ended   Nine Months Ended
    (Unaudited)                        September 30,        September 30,
                                      2007       2006      2007        2006
    Revenue                             $531     $1,387    $2,228      $7,660
    Cost of goods sold                  (381)    (4,524)   (2,274)     (7,847)
    

    Gross profit                         150     (3,137)      (46)      
(187)

    
    Operating expenses
      Selling, general and
       administrative                  1,456      1,964     4,459       6,695
      Research and development         2,164      2,430     7,169       8,092
      Amortization of intangibles         48         48       144         144
    

    Total operating expenses       3,668 -    4,442    11,772 -    14,931

    Operating loss                    (3,518)    (7,579)  (11,818)   
(15,118)

    Other income (expense)               500        (40)      893         169

    
    Net loss applicable to common
     shareholders                    $(3,018)   $(7,619) $(10,925)   $(14,949)
    

    
    Weighted average number of
     common shares outstanding basic
     and diluted                      11,507      5,548    11,507       5,548
    

    
    Basic and diluted loss per
     common share                     $(0.26)    $(1.37)   $(0.95)     $(2.69)
    




For further information:

For further information: Mr. David Pellone, +1-510-563-4775, or Ms.
Peggy  Allman, +1-510-563-4721, both of World Heart Corporation; or Mr.
Stephen Laird  of Genesis Select Corporation, +1-203-341-0214, for World Heart
Corporation Web Site: http://www.worldheart.com

Organization Profile

WORLD HEART CORPORATION

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