Anteris Technologies (AVR: $23.00) finished the March quarter with $32 million in cash following a $35 million capital raise in the quarter at $24 per share. The company's net cash outflow for the last three quarters from operational and investment activities was $14.5 million.

The company expects to start a 15 patient early feasibility study (EFS) with its novel aortic heart valve following the very strong results from the first 13 patients implanted. The EFS will be conducted this quarter at seven specialty clinics, with rapid interim results expected in the following quarter. This study will open the path for a pivotal study next year.

Last month the company announced a program expansion to begin development of novel repair devices for mitral and tricuspid valves using a transcatheter, 'edge-to-edge' approach. The technology emerged from Columbia University and was developed by Dr Vinne Bapat, a cardiologist who is a medical advisor to Anteris.

It aims to improve on existing transcatheter repair approaches to these valves, incorporating the knowledge and systems Anteris has developed for its first program, the DurAVR for aortic stenosis. This includes knowhow and technology for navigating through the blood vessels and the ability to rotate the implant to ensure precise alignment. In mitral and tricuspid valve repair, the aim is to achieve better closure of the valve, where in aortic stenosis the aim is to better open the aorta.

The technology is owned by a private company (v2vmedtech) with Dr Bapat being the major shareholder. Anteris will acquire a 30% stake initially, and will fund and coordinate the product development. After US$10 million has been invested, Anteris will own between 58% -60% of the company, with the option to discontinue following each of the first five development stages. A 2.5% - 8% royalty will be payable to Dr Bapat (and another shareholder).

Bioshares recommendation: Speculative Buy Class