* To cut 42 pct of its workforce
* Says restructuring plan to result in $1.6-$2.3 mln cash
* Sees $1.0 mln in severance benefits
* Sees $3-$5 mln in addl charges
* Shares at year-low
July 29 Heart devices maker World Heart
Corporation said it will end its Levacor heart device
study, for a delay related to changes previously made in the
device, and said it would cut its workforce by 42 percent,
sending its shares down to a year-low.
The device, Levacor Ventricular Assist Device, is a
magnetically levitated centrifugal heart pump to provide
unobstructed blood flow for adults who suffer from late-stage
However, World Heart said it will keep providing technical
support to existing Levacor VAD recipients and clinical centers.
In February, the company had suspended patient enrollment
for its heart device study as it awaited regulatory approval for
changes made in the device.
The company said it would now focus its resources on
PediaFlow and MiFlow VADs, its minimally invasive ventricular
assist devices that are currently in development.
In a regulatory filing, World Heart -- which had 65
full-time employees, as of March 15, -- said severance and
benefit payments are expected to total about $1 million.
It also expects $3-$5 million in additional restructuring
charges related to inventory and equipment write-downs.
The company expects about $1.6-$2.3 million of aggregate
cash expenditures because of the restructuring plan. About
$1.5-$2.0 million of this may be in the third and fourth
quarters of 2011 and the remainder in 2012.
World Heart shares fell 39 percent to a year-low of 52 cents
on Friday on Nasdaq.
(Reporting by Shailesh Kuber in Bangalore; Editing by Joyjeet