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Shares of Medical Device Maker Alsius Plunge on Sales Shortfall

Shares of Irvine medical device maker Alsius Corp. fell 15% on Friday after it said its third-quarter revenue would be below expectations.

Alsius, which makes catheters and other instruments to control patients’ body temperature in hospitals, said in a statement that it expects $1.9 million in sales in the period ended Sept. 30, up 5%.

Alsius also said that it probably won’t meet an earlier 2007 revenue forecast of $11.5 million to $12.5 million. The company now estimates its revenue will come in at $8.5 million to $9.5 million.

While Alsius isn’t losing business, the company isn’t closing sales as fast as expected, Chief Executive Bill Worthen said.

Worthen also noted that “we have a large number of hospitals evaluating our products.”

Alsius had planned a $40 million initial public offering in 2006, but was sold for that same price a year ago to New York-based Ithaka Acquisition Corp., a shell company. Alsius then began trading and has a market value of about $105 million.

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