The shares in Carmat SA have posted their biggest gain, in over seven years, since the company received approval to sell the first complete artificial heart in Europe. The creation was completed after a 27-year effort that was initiated from a pitch by a cardiac surgeon from France to an aerospace company.
In Paris, at 11:29 a.m. the stock rose by 34% to 32.05 euros, after rising as much as 50%, which was its slargest gain in a day since the month of May in 2013. The company’s market value is now approximately 407M euros, or $496M, after a 66% increase in their shares this year.
Carmat can now sell their device in the European Union, after obtaining a CE mark. Their device serves as a bridge to heart transplant for patients suffering from irreversible heart failure at the end stage.
In 1993, Alain Carpentier, a heart-valve inventor and surgeon, made a proposal to develop an artificial heart to the French industrialist, Jean-Luc Lagardere. The latter, by putting a few laboratories and engineers from his missile company, Matra, at Carpentier’s disposal, allowed the project to expand over time. Expansion was also succeeded by the mergers that led to Matra becoming part of Airbus SE. Carpentier owns approximately 5.3%, while Airbus SE is Carmat’s biggest shareholder, holding 13%.
On an interview with BFM Business televison, Stephane Piat, Carmat’s Chief Executive Officer, stated that it took a decade for the company to receive the CE mark, a record time due to the device’s complexity. He continued by saying that the company will have to collaborate with medical centres and doctors to provide their therapy and seek out patients, and that the production phase will be a delicate one.
The four year CEO, states that Carmat is planning to increase the device’s manufacturing in January, with a second shift.
Mohamed Kaabouni, the analyst from Portzamparc, noted that the artificial heart created by Carmat has amazing potential and could gain 700 million euros in annual sales by the year 2030, in Europe alone.
Kaabouni continued by stating that the thing everyone was waiting for is finally here! Obtaining the CE mark is crucial for patients and given the increasing medical need, along with the ratity and ineffectiveness of other soluitions, the Carmat got approval for a blockbuster.
Carmat stated that the device will be available for sale in Q2.