Thoratec Acquires DuraHeart® II Ventricular Assist System

          Thoratec Acquires DuraHeart® II Ventricular Assist System

PR Newswire

PLEASANTON, Calif., July 1, 2013

PLEASANTON, Calif., July 1, 2013 /PRNewswire/ --Thoratec Corporation (NASDAQ:
THOR), a world leader in device-based mechanical circulatory support therapies
to save, support and restore failing hearts, said today it has acquired the
DuraHeart^® II ("DH-II") ventricular assist system from Terumo Corporation
(TSE: 4543 Section 1) for an upfront cash payment of $13 million and potential
future milestone payments, based on regulatory approvals and product sales, of
up to $43.5 million. As part of the agreement, a team of Terumo employees
will transition to Thoratec and will continue to be based in Ann Arbor,
Michigan. Additionally, Thoratec and Terumo have entered into a distribution
partnership, in which Terumo will commercialize DH-II in Japan and potentially
other parts of Asia.

DH-II is an ultra-compact, full-support, centrifugal flow chronic VAD
utilizing a unique technology foundation known as "force balance" suspension.
The device utilizes primary magnetic forces, balanced by hydrodynamic support,
to achieve consistent gaps across the operating range of the pump, independent
of pump speed. This approach is designed to create a pumping mechanism with
excellent blood-handling characteristics. Preclinical testing has shown a
favorable profile for DH-II with respect to hemolysis, bleeding, and
thrombosis.

Thoratec intends to apply its resources and expertise in mechanical
circulatory support in order to advance the DH-II program through product
development and clinical trials. Thoratec anticipates a first-in-human
implant of the DH-II pump in 2016 to be followed by clinical trials in the
U.S. and abroad. Following clinical trials, the distribution partnership
between Thoratec and Terumo should optimize patient access to the DH-II
technology on a worldwide basis.

"Thoratec is committed to delivering a steady cadence of innovative new
products to the VAD market in the coming years," said Gary F. Burbach,
President and Chief Executive Officer of Thoratec. "DuraHeart II brings a
differentiated approach to mechanical circulatory support to Thoratec's R&D
portfolio and will be an integral component of our product development
strategy, along with continued evolution of the HeartMate II^® system,
next-generation pump platforms including HeartMate III^TM and HeartMate
PHP^TM, which are expected to begin pivotal CE Mark trials in the second half
of 2013, and breakthrough cross-platform technologies such as our fully
implantable system."

"Terumo believes that the transfer of the development of DuraHeart II to
Thoratec is the best and fastest way to commercialize the technology and to
ensure access for patients in Japan, the U.S., and the rest of the world. We
are pleased that Thoratec recognizes the value of the DuraHeart II platform
and will be applying its expertise and resources to develop and bring this
exciting product to market," said Yutaro Shintaku, President and
Representative Director of Terumo Corporation.

Thoratec anticipates that the acquisition will add incremental ongoing
operating expenses, primarily related to research and development, of
approximately $6-7 million in the second half of 2013. Additionally, Thoratec
will recognize transaction-related expenses, including the amortization of
intangible assets, which will be quantified in the company's second quarter
earnings report and following the completion of the purchase price allocation
for the transaction.

Thoratec is a world leader in therapies to address advanced-stage heart
failure. The company's products include the HeartMate® LVAS (Left Ventricular
Assist System) and Thoratec® VAD (Ventricular Assist Device) with more than
20,000 devices implanted in patients suffering from heart failure. Thoratec
also manufactures and distributes the CentriMag® and PediMag®/PediVAS® product
lines. Thoratec is headquartered in Pleasanton, California. For more
information, visit the company's website at http://www.thoratec.com.

Thoratec, the Thoratec logo, HeartMate and HeartMate II are registered
trademarks of Thoratec Corporation and IVAD is a trademark of Thoratec
Corporation. CentriMag and PediMag are registered trademarks of Thoratec LLC,
and PediVAS is a registered trademark of Thoratec Switzerland GmbH.

DuraHeart is a registered trademark of Terumo Corporation. Tokyo-based Terumo
Corporation is one of the world's leading medical device manufacturers with $4
billion in sales and operations in more than 160 nations. Founded in 1921,
the company develops, manufactures, and distributes world-class medical
devices including products for use in cardiothoracic surgery, interventional
procedures, and transfusion medicine; the company also manufactures a broad
array of syringe and hypodermic needle products for hospital and physician
office use. Terumo contributes to society by providing valued products and
services to the healthcare market and by responding to the needs of healthcare
providers and the people they serve.

Many of the preceding paragraphs, particularly but not exclusively those
addressing financial results or future performance contain forward-looking
statements within the meaning of Sections 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. These statements can
be identified by the words, "anticipates," "believes," "views," "expects,"
"plans," "projects," "hopes," "could," "will," "estimates," and other similar
words. Actual results, events or performance could differ materially from
these forward-looking statements based on a variety of factors, many of which
are beyond Thoratec's control. Therefore, readers are cautioned not to put
undue reliance on these statements. Investors are cautioned that all such
statements involve risks and uncertainties, including risks related to
regulatory approvals, the development of new products, including development
and clinical trial timing, and new markets including Destination Therapy, the
growth of existing markets for our products, customer and physician acceptance
of Thoratec products, changes in the mix of existing markets for our products
and related gross margin for such product sales, the effects of FDA
regulatory requirements, our ability to address issues raised by FDA
inspections adequately and on a timely basis without a resulting recall of
products or interruption of manufacturing or shipment of products, the
effects of competition and the effects of any merger, acquisition and
divestiture related activities. Forward-looking statements contained in this
press release should be considered in light these factors and those factors
discussed from time to time in Thoratec's public reports filed with the
Securities and Exchange Commission, such as those discussed under the heading,
"Risk Factors," in Thoratec's most recent annual report on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K and other SEC
filings. These forward-looking statements speak only as of the date hereof.
Thoratec undertakes no obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof, or to reflect the occurrence of
unanticipated events.

SOURCE Thoratec Corporation

Website: http://www.thoratec.com
Contact: Taylor Harris, Vice President and Chief Financial Officer, Thoratec
Corporation, (925) 738-0047
 
Press spacebar to pause and continue. Press esc to stop.