August 27, 2010 / 4:42 PM / 7 years ago

UPDATE 1-Victhom Human Bionics raises going concern doubts on JV

* JV partner voluntarily funds project

* Q2 rev down 94 percent

Aug 27 (Reuters) - Victhom Human Bionics Inc VHB.V raised doubts about the ability of its joint venture with Otto Bock HealthCare GmbH to continue as a going concern, citing delays in its investigational device that helps stimulate ankle muscles in people with walking difficulty.

The joint venture Neurostream Technologies, in which Victhom has a 44.4 percent stake, is developing Neurostep -- an implantable device for people suffering from foot drop.

“The overall Neurostep project is taking longer than anticipated and Neurostream is late on a partnership milestone on the product registration in Europe that was due on May 1,” Victhom Chief Executive Normand Rivard said.

However, Victhom, which had cash of C$172,185 as on June 30, said its joint venture partner has continued to fund the operations on a voluntary basis.

Shares of the company, which have lost 88 percent of their value June 2009, were trading down 12 percent at 7.5 Canadian cents Friday on the Toronto Venture Exchange.

The company also said its second-quarter revenue fell 94 percent to $27,901, hurt by a transfer of product support and development activities to Ossur which was completed during the first quarter.

Ossur has the rights to commercialize the Powerknee, a motor-powered, artificially intelligent prosthesis for above-knee amputees, developed by Victhom. (Reporting by Aftab Ahmed in Bangalore; Editing by Roshni Menon) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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