AMERICAN SUCCESS STORY: THORATEC
First of a Series
By GRANT HALL
Successful entrepreneurship is the lifeblood of the United States of America. Companies in this series were built in
the U.S.A. and provide valuable products or services to Americans and the world. These are highly profitable
businesses and may be publically traded. A company under the management of Grant Hall may benefit from share
value changes of companies in this series. Grant Hall does not provide investment advice or broker stocks and
these articles are not for investment advice purposes. The author does not endorse any products or services
provided by companies in this series.
NEW MEDICAL PRODUCT
Thoratec, a leading medical device maker based in Pleasanton, California received FDA approval for its
second-generation heart pump, the Heartmate II during the spring of 2008 (Kelly, 2008).
Analysts expect the Heartmate II to be the number one selling pump on the market for the next several years. The
durable heart device has only one moving part and has the ability to operate for up to ten years according to
Thoratec, CEO, David Smith.
NEW PATIENT MARKET
Destination Therapy (DT) patients received favorable results from the Heartmate II based on preliminary study
results announced December 5, 2008. DT patients are those who have to use the device permanently due to
age and/or medical conditions that make heart transplants not feasible. FDA approval for DT patient use is
expected in 2009.
DOMINANT WORLD LEADER
Thoratec has about 75% of the U.S. market and approximately 65% of the European market.
EARNINGS AND SALES INCREASE
Fiscal year 2008 marked a dynamic increase in sales and earnings for Thoratec as earnings per share increased
by 122% and 325% in the quarters ended June and September of 2008 respectively. For these same periods,
sales increased 44% in each quarter.
DEMAND FOR SHARES
As the stock market indexes bounce off the lows set on November 21, 2008 which was the fourth leg down in this
severe bear market, a follow through (O’Neil, 2002) occurred on December 2, 2008. Not every follow through-a
confirmation of a short-term uptrend, results in a new bull market in stocks, but no bull market has ever started
Thoratec shares, (THOR) have attracted the big money of late as weekly trading volume for the week ending
December 5, 2008 was the highest in over five years. During the week ending December 12, 2008, the stock
price made a new all time high.
Editors Note: Grant Hall is the author of Privacy Crisis: Identity Theft Prevention Plan and Guide to Anonymous
Living. This eBook is available at: www.PrivacyCrisis.com
Kelly, Brad, FDA Approval of Heart Pump May Give New Hope to Patients, Investor’s Business Daily,
August 27, 2008
Medical News Today, Thoratec Says Interim Data Analysis Demonstrates Statistical Superiority for the
Heartmate II (R) in Destination Trial, December 5, 2008, www.MedicalNewsToday.com
O’Neil, William, J., How to Make Money in Stocks: A Winning System in Good Times or Bad,
Third Edition,McGraw-Hill, 2002
William O’Neil + Co., Inc., Daily Graphs Online, www.DailyGraphs.com
Copyright, James Clark King, LLC, December 12, 2008