Healthcare Industry News: Cambridge Heart
News Release - October 13, 2006
Cambridge Heart Announces Management ChangeFormer HP Executive Joins as CEO
BEDFORD, Mass.--(HSMN NewsFeed)--Cambridge Heart, Inc. (OTCBB:CAMH ) today announced that on October 13, 2006 the Board of Directors accepted the resignation of David A. Chazanovitz as President and Chief Executive Officer and a member of the Board of Directors. Mr. Chazanovitz has served as President and Chief Executive Officer of the Company for the past 6 years and during that time has overseen a significant expansion in the reimbursement coverage for the Company's diagnostic test, including the National Coverage Decision issued by the Centers for Medicare and Medicaid Services (CMS) earlier this year.
"The Board of Directors would like to thank David for his leadership and for positioning the Company to reach even greater heights," commented Robert Khederian, Chairman of the Board.
The Board of Directors has appointed Jeffrey J. Langan as President and Chief Executive Officer of the Company effective October 13, 2006. Mr. Langan has served as a member of the Board of Directors since 1999 and is very familiar with the opportunities and challenges facing the Company.
Mr. Langan resigned as Chairman of the Audit Committee and a member of the Compensation Committee effective October 13, 2006. The Board of Directors has appointed Reed Malleck to serve as Chairman of the Audit Committee effective October 13, 2006.
Commenting on Mr. Langan's appointment, Mr. Khederian stated, "Jeff has over 30 years of experience in the medical diagnostic and instrument industry with a proven track record of success. The Board believes that Jeff's short and long term vision for the Company will enhance value for our shareholders."
For the last several years, Mr. Langan has been founder and a principal of Maine Point Associates, a firm specializing in customer focused strategic and operational business consulting. In that role, Mr. Langan has worked with biotechnology, life science and analytical instrument firms, often in COO or CEO roles, to develop and focus strategic business plans with the goal of instilling a stronger customer orientation coupled with the creation of shareholder value. More recently, Mr. Langan has joined the Business Advisory Board of Optherion Inc., a genetic therapeutic/diagnostic start-up located in New Haven, Connecticut.
Mr. Langan's previous career accomplishments include leading the marketing effort in the successful launch of Hewlett Packard's (HP) diagnostic cardiology ultrasound business. As HP's North American Medical Sales Manager, he led the integration of direct, major account, and distributor sales organizations across all of HP's North American medical product lines substantially growing sales in the face of major changes in reimbursement for the product lines. Later as General Manager of HP's Clinical Systems business unit, he drove the global strategy and increased earnings performance for all of that unit's Patient Monitoring, Diagnostic Cardiology, and Defibrillator businesses, which served hospitals, cardiologists and physicians worldwide. After HP, Mr. Langan served as President and CEO of Thermedics Detection, Inc., leading that firm's turnaround and initial public offering and establishing close relationships with shareholders and analysts in the process. Later, Mr. Langan served in various capacities at IDEXX Laboratories, including President, Chief Operating Officer and Chief Executive Officer during the firm's 1998 turnaround. Mr. Langan received an M.B.A. from the Harvard University Graduate School of Business Administration.
"We have a great team in place that is focused on building stronger customer relationships to drive both new unit and sensor (usage) sales of the Company's Microvolt T-Wave Alternans Technology through continued efforts to expand third party reimbursement coverage and more intense interaction with current and future customers," said Mr. Langan. "It is also my goal to take advantage of and to create new opportunities for business partnerships with others in the cardiology industry, to strengthen international sales, to establish major account sales, and to explore opportunities to utilize Microvolt T-Wave Alternans Technology in other segments of cardiac diagnostics."
Mr. Langan added that he looks forward to discussing the Company's third quarter results, including its continued growth in sales, on the Company's third quarter conference call on November 2, 2006.
About Cambridge Heart
Cambridge Heart is engaged in the research, development and commercialization of products for the non-invasive diagnosis of cardiac disease. Using innovative technologies, the Company is addressing such key problems in cardiac diagnosis as the identification of those at risk of sudden cardiac arrest. The Company's products incorporate its proprietary technology, Microvolt T-Wave Alternans, and are the first diagnostic tools cleared by the U.S. Food and Drug Administration to non-invasively measure microvolt levels of T-wave alternans. The Company, founded in 1990, is based in Bedford, Massachusetts and is traded on the OTCBB under the symbol CAMH. More information about Cambridge Heart can be found at www.cambridgeheart.com. The Company also files regular reports with the U.S. Securities and Exchange Commission, which are available at no charge either through the Company or via the Internet at www.EDGAR.gov.
About the Cambridge Heart Microvolt T-Wave Alternans Test
The Cambridge Heart Microvolt T-Wave Alternans Test measures extremely subtle beat-to-beat fluctuations in a person's heartbeat called T-wave alternans. These tiny heartbeat variations - measured at one millionth of a volt - can be detected in any clinical setting where titration of the heart rate is possible. The test involves placing proprietary sensors on a patient's chest, after which the Company's proprietary algorithms assess the data and deliver the results in a format that can be easily understood by the attending physician. Extensive clinical research has shown that patients with symptoms of or, who are at risk of, life threatening arrhythmias who test positive for T-wave alternans are at significant risk for subsequent sudden cardiac events including sudden death, while those who test negative are at minimal risk.
Statements that are not purely historical are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. In some cases, we use words such as "believes", "expects", "anticipates", "plans", "estimates", "could" and similar expressions that convey uncertainty of future events or outcomes to identify these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements. Factors that may cause or contribute to such differences include customer delays in making final buying decisions, decreased demand for our products, failure to obtain funding necessary to develop or enhance our technology, adverse results in future clinical studies of our technology, failure to obtain or maintain patent protection for our technology, failure to obtain or maintain adequate levels of third-party reimbursement for use of our products and other factors identified in our most recent Annual Report on Form 10-K under "Factors Which May Affect Future Results", which is on file with the SEC and available at www.EDGAR.com. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so except as may be legally necessary, even if our estimates should change.
Source: Cambridge Heart
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