Thoratec Corp (NASDAQ:THOR)

CAPS Rating: 3 out of 5

The Company manufactures, develops and markets medical devices used for circulatory support.

Recs

2
Player Avatar Tastylunch (29.36) Submitted: 10/26/2008 11:44:04 PM : Underperform Start Price: $20.71 THOR Score: +2.71

After hours Press Release admits their heart pumps are defective and can be lethal.Already 5 recipients are dead.Lost 50% already in after market trading (and it may actually rebound and kill my score, but I make this pick in the interest of community intelligence)http://www.reuters.com/article/marketsNews/idINBNG39608320081024?rpc=44This is one short that is a real tragedy and shouldn't be made light of.My thoughts and prayers go out to the families affected by this.Please no jokes or flippant comments :-(

Member Avatar rdm1961 (< 20) Submitted: 10/30/2008 7:21:58 PM
Recs: 0

I'm not surprised by the short term drop in price after the recall announcement but the thing to understand here is how the medical community (surgeons and cardiologists) will react to this device defect information. Remember that this is a life support device that is used as a last hope for patients that are very near death. Normally with in days or weeks in their doctors opinion. Also important is the affect the news has on patient confidence. http://newsok.com/bad-heart-pump-is-still-a-blessing/article/3317053 http://www1.umn.edu/news/features/UR_CONTENT_100270.html With 27 failures out of nearly 2000 implants the failure rate is about 0.014 (1.4%). As a patient or family member faced with the decision of certain death within weeks or a pump that can extend life for years but has some posiblity of failure I still see most patients (and their doctors) going with the pump. I see a lot of upside for THOR.

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