Cambridge Heart, Inc. (NASDAQOTCBB:CAMH)

CAPS Rating: No stars

The Company is engaged in the research, development and commercialization of products for the non-invasive diagnosis of cardiac disease.


Player Avatar SteadySaber (68.30) Submitted: 12/31/2006 7:19:24 PM : Underperform Start Price: $2.77 CAMH Score: +149.43

I spoke with a few doctors and they pointed out that the ultimate users and buyers of this equipment have a disincentive to use it because they make more money installing the defibs and therefore don't want to find out what patients will not benefit from the defibs. Moreover, the cost of the machine is so high that only groups of 30-50 can afford to make the purchase and these groups I'm told only conduct a few tests a week. If hospitals start buying it for the cardios then that may change the limitations to some extent. Bottom line, this stock has a huge cult following and therefore I think is overly hyped as is what typically happens in the market. Once reality sets in, they will not be able to sell nearly as many of these equipment as people think. This is one to watch AFTER some decent sales start happening and not before. All the

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Member Avatar SteadySaber (68.30) Submitted: 3/21/2007 5:53:59 PM
Recs: 1

They just reported a joint marketing deal with St. Jude. The terms of royalties are not disclosed nor even remotely suggested. They raised guidance by a couple million which makes me think they don't get much. On top of all this, isn't this like asking old man winter to sell heaters when all old man winter wants to do is freeze as many peoples butts off. St. Jude wants ICDs in the patients. MTW tells you which patients don't need ICDs. Get the point. If you really want to buy this stock, wait for sales or wait for Medicare to REQUIRE the test.

Member Avatar downwithpumpers (99.35) Submitted: 3/22/2007 10:43:43 AM
Recs: 2

You're totally missing the point. Patients die and lawsuits result because people receive defibrillators they don't need. This device will help ensure that only patients who need them receive them. It will also help ensure that doctors have a more convincing rationale for choosing this (expensive) treatment.

Here's the text of the article trom today's New York Times:
St. Jude Medical is stepping in to prop up a start-up company that it hopes can help revive the stagnating $6 billion market for implantable heart defibrillators.

The start-up, Cambridge Heart, based in Bedford, Mass., said yesterday that St. Jude Medical would take over efforts to sell its product: stress test equipment that doctors use to assess patients as candidates for defibrillators.

St. Jude will also pay Cambridge Heart $12.5 million in convertible stock, a financial infusion that eliminates the possibility that Cambridge Heart could run out of cash in the next year.

Heart defibrillators sold by St. Jude and others are implanted electronic devices that can restore normal cardiac rhythms if the heart starts beating erratically. The devices can cost up to $50,000 including implantation surgery, and insurers have begun balking at paying for them because three-quarters of patients end up never needing a defibrillator shock to save their lives.

Medicare has urged the use of Cambridge Heart’s test, which costs $300 to $400, as a way to screen patients to determine who is unlikely to need a defibrillator. Cambridge Heart’s system measures what are known as T-Wave alternans, which are tiny variations in a single electrical wave in the heart.

Normal T-wave signals are seen as a reliable predictor that a heart-failure patient is not at risk of having a heart attack in the next year. At the same time, abnormal or unclear T-wave results have been associated, although not quite as strongly, with heightened risks of having a heart attack.

Cambridge’s system is far less invasive than previous devices that measured T-waves.

But as St. Jude’s investment reflects, the test might also encourage more doctors to recommend the implants, which could revive sales.

Besides the questions raised by insurers, the defibrillator has been clouded in the past year by widespread publicity about failures of the implants involving a small number of patient deaths.

An advertising campaign by Medtronic, the market leader, has had little apparent effect in allaying the concerns. Medtronic invested $6.5 million in Cambridge Heart in 2003. Medtronic, St. Jude and the other maker of defibrillators, Boston Scientific, have paid for clinical trials of Cambridge Heart’s test equipment.

In announcing the deal yesterday, Cambridge Heart raised its projected revenues for this year by $2 million, increasing it to a range of $14 million to $16 million. But the company projected that losses would widen because of spending to support St. Jude’s sales force.

Cambridge’s shares fell 4 cents, to $2.71. The announcement was made after the market’s close.

Member Avatar SteadySaber (68.30) Submitted: 3/22/2007 4:24:19 PM
Recs: 0

All this deal represents is further truth to the old adage: "keep your friends close to you and your enemies closer". When the news broke about MTW receiving Medicare approval as being "reasonable and necessary" analysts from all the ICD makers were on the call questioning about the impact. It was pretty obvious that they were looking at this as something that would take away ICD growth.

I have no beef with the technology. I have spoken to one of the top 5 in country in this field at a medical rep dinner talk and the science is legit.

Folks, put this on the watch-list. Buy after Medicare requires the test or buy after listening to conference calls from St. Jude discussing how they are pouring millions into marketing this product and how interest is strong. Then wait for real growth in sales (a couple quarters). Then I would be believer they have CAMH's interests at heart and might be a buyer. I'd rather pay $4 per share after a few good quarters and proof that St. Jude will do the right thing. Losses hurt.

Although its pure speculation, the original CEO left I think because he didn't want to join with these companies. Read the PRs and you'll see this between the lines.

Member Avatar SteadySaber (68.30) Submitted: 7/10/2007 10:08:35 PM
Recs: 0

As the top bear pitch, I'm getting my head handed to me with this selection. I'll keep the torch lit on this one if you guys up my recs from six. Thanks.

Member Avatar 99picks (< 20) Submitted: 7/19/2007 2:27:39 PM
Recs: 0

It doesnt take much spin in the market for the stock to go up. It will probably continue to do so. Long term their business plan has some flaws that will eventually come to light, especially if some fast following competitors enter the market. Considering the size of the company it wont take much penetration to make a profit, so they will probably continue to see price appreciation.

Member Avatar SteadySaber (68.30) Submitted: 8/17/2007 5:40:50 PM
Recs: 0

Game over for Cambridge Heart - GE is trying to muscle in now to prevent the monopoly.

Member Avatar SteadySaber (68.30) Submitted: 9/14/2007 6:09:13 PM
Recs: 0

Inside director just sold ALL of his shares. Wonder what the quarter is going to look like?

Selling on the way down is always a bad omen.

This guy owns nothing of CAMH.ob now and he's a director. Why do you still own?

Member Avatar SteadySaber (68.30) Submitted: 10/8/2007 12:34:32 PM
Recs: 0

October 8th. Just pre-announced a terrible quarter and that they will miss the guidance for this year. With $2 million per quarter run rate, $8 million sales does not justify a $200 million market cap company.

Buy this when they prove themselves with sales. Until then, this is just a market hyped ob stock.

Member Avatar SteadySaber (68.30) Submitted: 11/6/2007 10:36:14 AM
Recs: 0

Study says follow AHA and do not buy the machine. Read last sentence.

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