SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                               ------------------

                                    FORM 6-K

                        REPORT OF FOREIGN PRIVATE ISSUER
                              RULE 13a-16 OR 15d-16
                                     OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                         For the month of November 2001




                             World Heart Corporation

                                 1 Laser Street
                                 Ottawa, Ontario
                                     K2E 7V1












           Indicate by check mark whether the registrant files or will
             file annual reports under cover Form 20-F or Form 40-F.

                           Form 20-F   X            Form 40-F
                                     -----                       -----

           Indicate by check mark whether the registrant by furnishing
             the information contained in this Form is also thereby
          furnishing the information to the Commission pursuant to Rule
              12g3-2(b) under the Securities Exchange Act of 1934.

                           Yes                      No    X
                               -----                    -----


         If "Yes" is marked, indicate below the file number assigned to
          the registrant in connection with Rule 12g3-2(b):82-________.
<PAGE>



                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                          World Heart Corporation


Date: November 29, 2001
                                          By: /s/ Ian Malone
                                             -----------------------------------
                                             Name:   Ian Malone
                                             Title:  Vice President Finance
                                                     and Chief Financial Officer
<PAGE>
                             WORLD HEART CORPORATION



                            THIRD QUARTER 2001 REPORT



                                  FOR THE THREE
                                 AND NINE MONTHS
                            ENDED SEPTEMBER 30, 2001

















<PAGE>


MESSAGE TO SHAREHOLDERS


The third  quarter saw  significant  advances in both market  response to assist
devices  in  treatment  of  heart  failure,  and in  World  Heart  Corporation's
(WorldHeart) position in that market.

The first implant of AbioMed's fully  implantable  total artificial heart (TAH),
in  Louisville  Kentucky in July,  drew a high level of attention  from both the
clinical  community and the general public. A common theme of commentary was the
hope that artificial heart technology offers to patients dying of heart failure,
and the view that most of these patients  require a device to assist their heart
rather than to replace it.

In August,  Thoratec's  REMATCH  clinical trial was ended after 129 enrollments.
The Trial, supported by the National Institute of Health and managed by Columbia
Presbyterian  Hospital,  was designed to assess the safety and  effectiveness of
left  ventricular  assist devices (LVADs) as destination  therapy for late stage
heart  failure  patients.  The  HeartMate  VE product was the device used in the
trial.  Expectations at the conclusion of the trial were that results would show
significant  extension of life of LVAD recipients and improvement in the quality
of life,  compared  to the  control  group.  This  expectation  was borne out by
results  published in November 2001,  and presented to the annual  conference of
the American  Heart  Association,  and  published in the New England  Journal of
Medicine.

These high profile  events came after years of successful  use of assist devices
in support of patients for brief periods while  recovering from surgery or other
temporary conditions, and for periods of months or years while waiting for heart
transplantation.  This history, and current developments,  have moved mechanical
heart assist for destination  therapy into the consciousness of the clinical and
patient community.

WorldHeart's  current  product,  Novacor(R)  LVAS, and next  generation  product
HeartSaverVAD(TM), have the opportunity to be leaders in this field, both in the
short term and in the future.

HeartSaverVAD(TM)  continues to be the only  pulsatile LVAD designed to be fully
implantable  in  the  chest,   remotely   powered,   monitored  and  controlled.
Pre-clinical trials of HeartSaverVAD(TM)  continued through the third quarter in
both bench and animal  tests.  The  results of these  tests were very  positive.
However,  further  technical  improvements were required in implanted cables and
connectors  to  ensure  long-term   reliability.   These  improvements  will  be
integrated into the system in the fourth quarter. Bench and animal tests will be
conducted  in the first  half of 2002,  and are  expected  to  demonstrate  high
reliability.  Clinical  trials are expected to begin in Canada and Europe in mid
2002, and in the United Stated in early 2003.

The  Novacor(R)  LVAS  continues to  demonstrate a high level of  reliability in
support of heart failure  patients.  Less than 1% of implants  have  experienced
device reliability issues,  with no deaths due to device failure,  and with some
patients supported for more than four years.


<PAGE>

Published REMATCH results indicate an expected failure rate for HeartMate VE of
35% after two years, with seven patient deaths attributed to device failure and
10 devices replaced due to malfunction. This represents an observed device
failure rate of 25% (17 of 68 implant recipients).

As described in the second quarter report,  the clinical trial named INTrEPID is
well underway in the United States to support a Pre-Market Approval  application
for Novacor(R) LVAS as destination  therapy.  During the third quarter, the Food
and  Drug  Administration  approved  expansion  of  the  trial  from  25  to  40
enrollments. Successful completion of this trial will be a significant factor in
expanding the use of Novacor(R)  LVAS in the United States prior to the approval
and market introduction of HeartSaverVAD(TM).

The number of Novacor(R) LVAS implants increased to 37 in the third quarter,  up
from 32 in the second quarter and 19 in the first quarter.  These were primarily
bridge to  transplant  recipients,  with most of the  increase  coming  from the
United States.

Revenues for the quarter ended September 30, 2001 were $2,636,728, compared with
$2,218,995 in the previous quarter and $2,897,489 in the same quarter last year.
All revenue is generated  from sales of the  Novacor(R)  LVAS (left  ventricular
assist  system).  The gross margin for the quarter ended  September 30, 2001 was
$487,289,  compared with a $337,879 gross margin during the previous quarter and
a negative gross margin of $976,147 for the quarter ended September 30, 2000.

Research and development  expenses for the third quarter,  and first nine months
were,  respectively,  $6,687,450 and  $22,448,320  compared with  $4,828,482 and
$11,204,941  for the  corresponding  periods  in 2000.  Total  cash  applied  to
operations  during  the  quarter  and  first  nine  months  were,   respectively
$9,743,622 and $29,690,081 compared with $6,061,829 and $14,719,689 for the same
periods last year. Net loss for the third quarter was $14,550,062,  or $0.96 per
share,  and for the first nine months was  $42,775,567  or $2.83 per share.  The
comparable  results  for  the  same  periods  last  year  were  a  net  loss  of
$11,359,451,  or  $0.75  per  share  for the  third  quarter,  and a net loss of
$19,872,375, or $1.34 per share, for the first nine months.

Cash and  short-term  investments  totaled  $13,933,086  at  September  30, 2001
compared with $25,156,919 at June 30, 2001. All financial  figures are expressed
in Canadian  dollars and are  prepared in  accordance  with  Canadian  generally
accepted accounting principles.

Financial  results  were as budgeted  for the period,  and quarter  over quarter
operating  expenses  were  consistent  except  for a  reduction  in the level of
research and development expenses from the second quarter reflecting recognition
of a  refundable  tax credit  totaling  $2.77  million,  which is expected to be
received  in 2001.  This  amount,  together  with cash on hand as well the $9.98
million  investment by Technology  Partnerships  Canada announced on November 2,
2001, are expected to fund operations into the second quarter of 2002.

WorldHeart  continues to believe that total  implantable and thoracic  placement
will be significant  advantages and that  HeartSaverVAD(TM) is a key product for
the future of WorldHeart. The experience with Novacor(R) LVAS, and the evolution


<PAGE>


of this  treatment  area  over the past  year  make  clear,  however,  that very
significant  demand exists for the Novacor(R) LVAS when  regulatory  approval is
obtained  for  its  use  as  destination  therapy  in  the  United  States.  The
Corporation  is  therefore  pursuing   completion  of  the  INTrEPID  trial  and
commencement of HeartSaverVAD(TM) clinical trials as complimentary priorities.


<PAGE>
WORLD HEART CORPORATION

Consolidated Statements of Loss
(Canadian Dollars)

<TABLE>
-----------------------------------------------------------------------------------------------------------------------

<CAPTION>

                                                          Three months ended                    Nine months ended
                                                  September 30,    September 30,      September 30,       September 30,
                                                           2001            2000               2001               2000
------------------------------------------------------------------------------------------------------------------------
                                                     (unaudited)     (unaudited)       (unaudited)          (unaudited)

<S>                                              <C>               <C>              <C>                  <C>

Revenue (Note 3)                                 $    2,636,728    $   2,897,489    $    5,458,380        $   2,897,489
                                                 -----------------------------------------------------------------------

Cost of goods sold
   Direct materials, labour and overhead             (1,750,790)      (1,003,366)       (5,023,812)          (1,003,366)
   Indirect overhead and other                         (398,649)      (2,870,270)       (1,548,183)          (2,870,270)
                                                 -----------------------------------------------------------------------

                                                     (2,149,439)      (3,873,636)       (6,571,995)          (3,873,636)
                                                 -----------------------------------------------------------------------


Gross margin                                            487,289         (976,147)       (1,113,615)            (976,147)
                                                 -----------------------------------------------------------------------


Expenses
   Selling, general and administrative               (3,417,809)      (2,386,329)       (9,355,951)          (5,311,431)
   Research and development                          (6,687,450)      (4,828,482)      (22,448,320)         (11,204,941)
   Amortization of intangibles                       (3,733,165)      (3,735,566)      (11,199,485)          (3,735,566)
                                                 -----------------------------------------------------------------------
                                                    (13,838,424)     (10,950,377)      (43,003,756)         (20,251,938)
                                                 -----------------------------------------------------------------------




Loss before the undernoted                          (13,351,135)      11,926,524)      (44,117,371)         (21,228,085)


Other income (expenses)
   Foreign exchange gain                                257,815          467,948           237,803              467,948
   Investment income                                    193,907          825,895         1,148,955            1,614,532
   Interest expense                                  (1,731,457)      (1,547,018)       (5,033,198)          (1,547,018)
                                                 -----------------------------------------------------------------------


Loss before income taxes                            (14,630,870)     (12,179,699)      (47,763,811          (20,692,623)


Recovery of future income taxes (Note 4)                 80,808          820,248         4,988,244              820,248
                                                 -----------------------------------------------------------------------

Net loss for the period                             (14,550,062)     (11,359,451)      (42,775,567)         (19,872,375)


Accumulated deficit, beginning of the period        (91,206,978)     (41,640,010)      (62,981,473)         (33,127,086)


Premium on redemption of common shares (Note 6)        (425,318)               -          (425,318)                   -
                                                 -----------------------------------------------------------------------

Accumulated deficit, end of the period           $ (106,182,358)   $ (52,999,461)   $ (106,182,358)       $ (52,999,461)
                                                 =======================================================================


Weighted average number of common shares             15,099,392       15,069,597        15,111,393           14,798,199
  outstanding
                                                 =======================================================================

Basic and diluted loss per common share          $        (0.96)   $       (0.75)   $        (2.83)       $       (1.34)
                                                 =======================================================================


     (The accompanying notes are an integral part of these consolidated financial statements.)


</TABLE>

<PAGE>


WORLD HEART CORPORATION

Consolidated Statements of Cash Flow
(Canadian Dollars)

<TABLE>
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION>

                                                                   Three months ended                  Nine months ended
                                                             September 30,    September 30,      September 30,     September 30,
                                                                     2001             2000               2001             2000
-----------------------------------------------------------------------------------------------------------------------------------
                                                              (unaudited)       (unaudited)       (unaudited)        (unaudited)

<S>                                                         <C>              <C>                 <C>                 <C>

CASH FLOWS FROM (USED IN)

Operating activities
   Net loss for the period                                  $ (14,550,062)   $ (11,359,451)      $ (42,775,567)      $ (19,872,375)
   Items not involving cash
      Amortization and depreciation                             4,388,163        4,235,177          13,157,280           4,377,515
      Interest on preferred shares                              1,731,457        1,547,018           5,033,198           1,547,018
      Recovery of future income taxes (Note 4)                    (80,808)        (820,248)         (4,988,244)           (820,248)
   Change in operating components of working capital           (1,232,372)         335,675            (116,748)             48,401
                                                            ------------------------------------------------------------------------
                                                               (9,743,622)      (6,061,829)        (29,690,081)        (14,719,689)
                                                            ------------------------------------------------------------------------


Investing activities
   Purchase of shortterm investments                                           (22,161,579)           (500,000)        (50,671,639)
   Redemption of shortterm investments                                          17,518,302          22,832,961          42,190,768
   Payment of expenses relating to the Novacor acquisition                      (1,266,267)         (1,215,262)         (2,330,962)
   Purchase of capital assets                                    (285,884)        (383,339)           (763,074)           (670,715)
                                                            ------------------------------------------------------------------------
                                                                 (285,884)      (6,292,883)         20,354,625         (11,482,548)
                                                            ------------------------------------------------------------------------


Financing activities
   Capital lease repayments                                       (40,989)         (38,074)           (120,735)           (104,472)
   Repurchase of common shares                                 (1,220,655)               -          (1,220,655)                  -
   Issuance of common shares through public offering                    -                -                   -          15,331,875
   Payment of expenses relating to the issue of common shares           -                -                   -            (199,133)
   Issuance of common shares through exercise of options                -           35,458                   -             109,990
   Issuance of common shares through exercise of warrants               -          667,066                   -             765,054
   Issuance of preferred shares                                         -                -                   -          29,612,000
                                                            ------------------------------------------------------------------------
                                                               (1,261,644)         664,450          (1,341,390)         45,515,314
                                                            ------------------------------------------------------------------------


Effect of exchange rate changes on cash and cash equivalents       67,317           24,188             259,067              24,188
                                                            ------------------------------------------------------------------------


Change in cash and cash equivalents for the period            (11,223,833)     (11,666,074)        (10,417,779)         19,337,265


Cash and cash equivalents beginning of the period              24,430,603       41,972,738          23,624,549          10,969,399
                                                            ------------------------------------------------------------------------


Cash and cash equivalents end of the period                 $  13,206,770    $  30,306,664        $ 13,206,770       $  30,306,664
                                                            ========================================================================




      (The accompanying notes are an integral part of these consolidated financial statements.)

</TABLE>
<PAGE>


WORLD HEART CORPORATION
Notes to the Consolidated Financial Statements
Three and nine months ended September 30, 2001


1.      Basis of Presentation

The accompanying  unaudited interim consolidated  financial statements have been
prepared by  management  in  accordance  with  accounting  principles  generally
accepted  in Canada  (GAAP) and  pursuant  to the rules and  regulations  of the
Ontario Securities  Commission regarding interim financial  reporting.  However,
these interim  consolidated  financial statements do not conform in all respects
to the  requirements of GAAP for annual financial  statements.  They include all
assets,   liabilities,   revenues  and  expenses  of  World  Heart   Corporation
(Corporation  or WorldHeart)  and its wholly owned  subsidiary  World Heart Inc.
These unaudited condensed notes to the interim consolidated financial statements
should be read in conjunction  with the audited  financial  statements and notes
for the year ended December 31, 2000.

The  preparation  of  these  unaudited   consolidated  financial  statements  in
conformity with GAAP requires  management to make estimates and assumptions that
affect the amounts  reported in the  consolidated  financial  statements and the
accompanying  notes.  Actual  results could differ from these  estimates and the
operating  results  for  the  interim  periods  presented  are  not  necessarily
indicative  of the  results  expected  for the  full  year.  In the  opinion  of
management, these unaudited consolidated financial statements reflect all normal
and recurring  adjustments  considered necessary to state fairly the results for
the periods presented.


2.      Going Concern

These  financial  statements  have  been  prepared  on the  basis of  accounting
principles  applicable to a "going  concern",  which assume that the Corporation
will  continue  in  operation  for the  foreseeable  future  and will be able to
realize  its assets  and  discharge  its  liabilities  in the  normal  course of
operations.

The viability of the Corporation is dependent upon the access to capital through
various  financing  options and the  Corporation  is  currently  pursuing  these
options.  The Corporation expects results for the next quarter may be similar to
those  experienced in the current  quarter and accordingly the Corporation has a
plan  ready  for  implementation  that  would  significantly   reduce  costs  if
additional  financing is not received.  If additional financing is not received,
the cost reduction plan is not completed or successfully implemented in the near
term,  or the  Corporation's  operating  results do not improve,  there would be
substantial doubt that the Corporation could continue as a "going concern".

If the "going  concern"  assumption  were not  appropriate  for these  financial
statements, then adjustments would be necessary in the carrying values of assets
and  liabilities,  the reported  revenues and  expenses,  and the balance  sheet
classifications used.


3.      Distribution Agreement with Edwards Lifesciences

In the fiscal year ended  December  31,  2000,  the  Corporation  entered into a
distribution  agreement (the Distribution  Agreement) with Edwards  Lifesciences
LLC (Edwards) whereby Edwards will be the sole distributor, except in the United
States, of the Corporation's  heart assist and heart replacement  products for a
period of five years  commencing  July 1, 2000. As a result of the  Distribution
Agreement,  WorldHeart  has  guaranteed  a minimum of US $2 million  annually to
Edwards in gross  profit on Edwards  sales of  WorldHeart  products,  where such
sales are less than US$10 million per year.


<PAGE>


The obligation to Edwards accrued and included as a reduction of revenue,  is as
follows:

<TABLE>
<CAPTION>

                                              Three months ended                       Nine months ended
                                     -------------------------------------    -------------------------------------
                                          September,        September, 30,       September, 30,      September, 30,
                                           30, 2001             2000                 2001                2000
                                     --------------- ---- ----------------    ----------------- -- ----------------

<S>                                   <C>                 <C>                    <C>               <C>
  Gross revenue                       $ 2,636,728         $  3,045,732           $ 6,990,763       $ 3,045,732
  Less: Rebate to Edwards                       -             (148,243)           (1,532,383)         (148,243)
                                     --------------- ---- ----------------    ----------------- -- ----------------

  Net revenue                         $ 2,636,728         $  2,897,489           $ 5,458,380       $ 2,897,489
                                     =============== ==== ================    ================= == ================
</TABLE>


4.      Income Taxes

In the third  quarter of fiscal  2001,  the  Corporation  recorded a recovery of
future  income taxes of $80,808  (2000 - $820,248)  on a net loss before  income
taxes of $14,602,874  (2000 - $12,179,699).  For the nine months ended September
30,  2001,  the  Corporation  recorded  a  recovery  of future  income  taxes of
$4,988,244  (2000 -  $820,248).  The  recovery of future  income  taxes  relates
entirely to United  States  operations  and  reflects  the reversal of temporary
differences and related recognition of loss carryforward amounts.


5.      Tax Credit Receivable

In the third  quarter  of fiscal  2001,  the  Corporation  recorded  an  Ontario
Business  Research  Institute (OBRI) tax credit  receivable of $2,770,000.  This
research  tax credit was applied to reduce  research  and  development  expenses
during the quarter.  The province of Ontario  permits this refundable tax credit
for scientific research and development expenditures incurred in the province as
part of an eligible research institute contract.


6.      Normal Course Issuer Bid

On September 20, 2001, the Toronto Stock Exchange accepted a Notice of Intention
to make a normal course issuer bid filed by the Corporation.  Under the terms of
the normal course issuer bid, the  Corporation has the right to purchase up to a
maximum of 200,000 of its common  shares  (representing  1.3 % of the issued and
outstanding  common shares of the  Corporation  as at September  17, 2001).  The
shares will be purchased  through the facilities of the Nasdaq  National  Market
(NASDAQ) at market  prices.  The normal  course issuer bid will remain in effect
until the earlier of November 17, 2001 or until the  Corporation  has  purchased
the  maximum  number of shares  permitted  under the bid.  No  director,  senior
officer or insider,  or any person  holding 10% or more of  WorldHeart's  common
shares intends to sell shares of WorldHeart in connection with the normal course
issuer bid.

During the third quarter,  ended September 30, 2001, the  Corporation  purchased
163,000  common  shares in  accordance  with the normal  course issuer bid for a
total cost of approximately $1,220,000. Of this total amount paid, approximately
$425,000 has been charged  directly to deficit,  representing  a premium paid on
redemption of common shares with the balance being charged to share capital.


All repurchased shares have been cancelled.

<PAGE>
WORLD HEART CORPORATION

Financial Statements
For the Three and Nine Months Ended September 30, 2001

<PAGE>
7.      Segmented Information

Operating  segments  are  defined as  components  of an  enterprise  about which
separate financial  information is available that is evaluated  regularly by the
Corporation's  chief  decision  maker in deciding how to allocate  resources and
assess  performance.  The  Corporation's  chief  decision maker is the Executive
Office.

The Corporation's  reportable segments are its commercial  operations related to
the sale of Novacor LVAS and related  components  and  research and  development
focused mainly on development of HeartSaver.

The accounting policies of the Corporation's  operating segments are the same as
those described in the Corporation's  audited financial  statements for the year
ended  December 31, 2000. On June 30, 2000,  the  Corporation  acquired  Novacor
whose commercial operations now comprise the Corporation's commercial operations
segment.

The following  presents segment  operating results for the three and nine months
ended  September  30, 2001 and September  30, 2000 and  identifiable  long-lived
assets as at September 30, 2001 and September 30, 2000.


<PAGE>
<TABLE>
<CAPTION>
                               Three months ended September 30, 2001                    Three months ended September 30, 2000
                       ------------------------------------------------------   ----------------------------------------------------
                       Commercial         Research and        Total             Commercial         Research and        Total
                       operations         development                           operations         development
                       ------------------------------------------------------   ---------------------------------------------------

<S>                     <C>               <C>              <C>                  <C>                <C>               <C>
Revenue                     $ 2,636,728     $      -       $ 2,636,728          2,897,489               -            $ 2,897,489
                       ------------------------------------------------------   ----------------------------------------------------

Cost of goods
sold
     Direct materials
     and labour              (1,750,790)           -        (1,750,790)         (1,003,366)             -             (1,003,366)
     Overheard and
     other                     (398,649)           -          (398,649)         (2,870,270)             -             (2,870,270)

                             (2,149,439)           -        (2,149,439)         (3,873,636)             -             (3,873,636)
                       ---------------------------------------------   ----------------------------------------------------------


Gross margin                    487,289            -           487,289            (976,147)             -               (976,147)
                       ---------------------------------------------   ----------------------------------------------------------

Expenses
     Selling, general
     and administrative      (1,548,933)     (1,868,876)    (3,417,809)         (1,030,103)          (1,356,226)     (2,386,329)
     Research and
     development                       -     (6,687,450)    (6,687,450)                  -           (4,828,482)     (4,828,482)
                       ------------------ ------------------ ----------------   ------------------------------------
                             (1,548,933)     (8,556,326)   (10,105,259)         (1,030,103)          (6,184,708)     (7,214,811)
                       ------------------------------------------------------   ------------------------------------
Loss before the          $   (1,061,644)   $ (8,556,326)    (9,617,970)        $(2,006,250)        $ (6,184,708)     (8,190,958)
undernoted             ===================================                     ======================================


      Amortization of intangibles                               (3,733,165)                                              (3,735,566)

      Other income (expenses), net                             (1,279,735)                                                (253,175)
      Recovery of future income taxes                              80,808                                                  820,248
                                                             ----------------                                         --------------

Net loss for the period                                       $(14,550,062)                                            $(11,359,451)
                                                             ================                                         ==============


Long-lived assets        $ 16,947,611     $ 27,290,272        $ 44,237,883       $ 24,148,345         $36,517,330      $ 60,665,675
                       ======================================================   ====================================================
Additions to
long-lived assets       $                    $ 285,884          $  285,884       $        -           $   383,339      $    383,339
                       ======================================================   ====================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                               Nine months ended September 30, 2001                      Nine months ended September 30, 2000
                       ------------------------------------------------------   ----------------------------------------------------
                       Commercial         Research and        Total             Commercial         Research and        Total
                       operations         development                           operations         development
                       ------------------------------------------------------   ----------------------------------------------------

<S>                    <C>                <C>              <C>                  <C>                <C>              <C>
Revenue                   $ 5,458,380     $        -       $ 5,458,380          $ 2,897,489               -         $ 2,897,489
                       ------------------------------------------------------   ----------------------------------------------------

Cost of goods
sold
     Direct materials
     and labour            (5,023,812)                  -   (5,023,812)          (1,003,366)              -          (1,003,366)
     Overheard and
     other                 (1,548,183)                  -   (1,548,183)          (2,870,270)              -          (2,870,270)
                       ------------------------------------------------------   ----------------------------------------------------

                           (6,571,995)                  -   (6,571,995)          (3,873,636)              -          (3,873,636)
                       ------------------------------------------------------   ----------------------------------------------------


Gross margin               (1,113,615)                  -   (1,113,615)            (976,147)              -            (976,147)
                       ------------------------------------------------------   ----------------------------------------------------

Expenses
     Selling, general
     and administrative    (4,263,147)         (5,092,804)  (9,355,951)          (1,030,103)        (4,281,328)      (5,311,431)

     Research and
     development                    -         (22,448,320) (22,448,320)                   -        (11,204,941)     (11,204,941)
                       ------------------ ------------------ ----------------   --------------------------------

                             (4,263,147)      (27,541,124)     (31,804,271)      (1,030,103)       (6,184,708)      (16,516,372)
                       ------------------------------------------------------   --------------------------------
Loss before the
undernoted               $ (5,376,762)       $(27,541,124)     (32,917,886)     $(2,006,250)      $(6,184,708)      (17,492,519)
                       =====================================                    ================================


     Amortization of intangibles                               (11,199,485)                                          (3,735,566)
     Other income (expenses), net                               (3,646,440)                                            (535,462)
     Recovery of future income taxes                             4,988,244                                              820,248
                                                             ----------------                                      ----------------

Net loss for the period                                       $(42,775,567)                                        $(19,872,375)
                                                             ================                                      ================


Long-lived assets        $ 16,947,611        $ 27,290,272     $ 44,237,883     $ 24,148,345      $ 36,517,330      $ 60,665,675
                       ======================================================   ====================================================
Additions to
long-lived assets
                        $           -        $    763,074     $    763,074                -      $    670,615      $    670,615
                       ======================================================   ====================================================
</TABLE>
<PAGE>


The following geographic area data includes revenue based on product shipment
destination and long-lived assets based on physical location. As at September
30, 2001, the Corporation has a location in Canada and the United States:
<TABLE>
<CAPTION>

                      --------------------------------------------------------------------------------------
                                        Revenue                              Long-lived assets
                      --------------------------------------------------------------------------------------
                       Three months ended   Three months ended       As at September       As at September
                       September 30, 2001   September 30, 2000        30, 2001              30, 2000
                      --------------------------------------------------------------------------------------
<S>                            <C>                     <C>               <C>                  <C>
Canada                          $      409            $        -       $    5,266,473         $   5,728,124
United States                    1,494,246             1,587,862       $   38,971,410            54,937,551

Europe                           1,142,073             1,457,910                    -                     -

Rest of the World                        -                     -                    -                     -

Less: Edwards Fee                        -             (148,283)                    -                     -
                      --------------------------------------------------------------------------------------
                             $   2,636,728         $   2,897,489       $   44,237,883         $  60,665,675
                      ======================================================================================


                      --------------------------------------------------------------------------------------
                                        Revenue                               Long-lived assets
                      --------------------------------------------------------------------------------------
                        Nine months ended     Nine months ended      As at September       As at September
                       September 30, 2001    September 30, 2000        30, 2001             30, 2000
                      --------------------------------------------------------------------------------------
Canada                         $     52,050            $        -        $  5,266,473         $   5,728,124

United States                     3,966,298             1,587,862          38,971,410            54,937,551

Europe                            2,913,094             1,457,910                   -                     -

Rest of the World                    59,321                     -                   -                     -

Less: Edwards Fee               (1,532,383)             (148,283)                   -                     -
                      --------------------------------------------------------------------------------------
                             $    5,458,380         $   2,897,489        $ 44,237,883         $  60,665,675
                      ======================================================================================
</TABLE>
<PAGE>

8.  New Accounting Pronouncements


Goodwill and other intangible assets

The Canadian  Institute of Chartered  Accountant's  Accounting  Standards  Board
(AcSB) has  approved a new Handbook  Section  replacing  BUSINESS  COMBINATIONS,
Section 1580,  that will require all business  combinations  to use the purchase
method of  accounting.  The AcSB has also  approved a new Section  dealing  with
GOODWILL AND OTHER INTANGIBLE ASSETS,  which will require intangible assets with
an indefinite  life and goodwill to be tested for impairment on an annual basis.
Goodwill and indefinite life intangibles will no longer be amortized. Intangible
assets with a definite  life will  continue to be  amortized  over their  useful
life.  The new  Sections  are  consistent  with those  recently  approved by the
Financial  Accounting  Standards  Board  (FASB) in the  United  States.  For the
Corporation these pronouncements will be effective for the fiscal year beginning
January    1,    2002.     Prior     periods     will    not    be     restated.


Accounting for stock-based compensation

The AcSB has  approved,  subject to written  ballot,  a new Handbook  Section on
Stock-Based  Compensation  and  other  Stock-Based  Payments.  The  new  Section
requires that stock-based  payments to non-employees  and direct awards of stock
to employees and non-employees be accounted for using a fair value-based  method
of  accounting.  The  Section  also  requires  enterprises  to account for stock
appreciation  rights  (SARs)  and  similar  awards  to be  settled  in  cash  by
measuring,  on an on-going  basis,  the amount by which the quoted  market price
exceeds the option price. The new Section encourages,  but does not require, the
use of the  fair  value-based  method  to  account  for  all  other  stock-based
transactions with employees. The new Section is based on FASB Statement No. 123,
Accounting for  Stock-Based  Compensation,  which is one of the two US Standards
covering stock-based compensation arrangements in that country. The AcSB expects
to include the new Section in the Handbook by December 2001. For the Corporation
these  pronouncements will be effective for the fiscal year beginning January 1,
2002 and will only apply to awards granted on or after the date of adoption and,
therefore,  will not apply to  modifications  and  settlements of awards granted
before   fiscal    periods    beginning   on   or   after   January   1,   2002.


<PAGE>

9. Subsequent Event

Subsequent to the end of the quarter,  the Corporation entered into an agreement
with  Technology  Partnerships  Canada  to  receive  a $9.98  million  repayable
investment  in  support  of  prototype   development   and  clinical  trials  of
WorldHeart's HeartSaverVAD.  The Corporation is entitled to receive 31.1% of its
eligible expenditures.  Funding of this amount will be made on a quarterly basis
as eligible expenditures are incurred. Under the agreement, the Corporation will
pay a 1% royalty on revenues of its  HeartSaver  VAD beginning  from the date of
the first  commercial sale and continuing for a period of six years.  If, at the
end of the  royalty  period,  the total  cumulative  royalty  payments  paid and
payable do not equal or exceed $19.7  million,  the royalty period will continue
until either  $19.7  million has been paid or for up to four  additional  years,
whichever  occurs first.  In addition,  prior to the first  disbursement  by the
Minister of Industry,  650,000 warrants for the purchase of common shares of the
Corporation  will be issued to the  Government of Canada.  The warrants shall be
exercisable any time over a five-year period at a price,  which is equal to 110%
of the closing price on the Toronto Stock Exchange,  at the close of business on
the day before receipt.

<PAGE>


Management's Discussion and Analysis of Financial Condition and
Results of Operations
For the three and nine month periods ended September 30, 2001


INTRODUCTION

The following  discussion is an update of  management's  discussion and analysis
for the year ended December 31, 2000 and the six months ended June 30, 2001, and
includes a discussion of the results of operations  and cash flows for the three
and nine months ended  September  30,  2001.  World Heart  Corporation,  and its
wholly  owned  subsidiary,  World Heart Inc.,  are  collectively  referred to as
"WorldHeart" or the "Corporation".  In this discussion,  references to "dollars"
or "$" or "Cdn$" are to Canadian dollars and references to "US dollars" or "US$"
are to United States dollars.

We wish to caution  readers that this report  includes  certain  forward-looking
information  and statements  within the meaning of US federal  securities  laws.
These forward-looking statements contain information that is generally stated to
be  anticipated,  expected or projected  by  WorldHeart,  and involve  known and
unknown  risks,  uncertainties  and other  factors  which  may cause the  actual
results and performance of WorldHeart to be materially different from any future
results  and   performance   expressed   or  implied  by  such   forward-looking
information.  Potential risks and uncertainties include, without limitation, the
uncertainties  inherent in the development of a new product for use in the human
body,  WorldHeart's need for significant  additional funding,  WorldHeart's need
for acceptance  from  third-party  payers,  extensive  Government  regulation of
WorldHeart's   products,   and  rapid  developments  in  technology,   including
developments by competitors.


OVERVIEW

WorldHeart  is  a  global  medical  device  company  currently  focused  on  the
development  and  commercialization  of  pulsatile  ventricular  assist  devices
through  operations in Oakland,  California,  USA and Ottawa,  Ontario,  Canada.
WorldHeart is currently  focused on two devices,  Novacor(R) LVAS (Novacor LVAS)
and HeartSaverVAD(TM) (HeartSaver).


Novacor LVAS

On June 30,  2000,  the  Corporation,  through  World Heart Inc., a wholly owned
subsidiary  of  WorldHeart,   acquired  the  business,   including   assets  and
liabilities  of Edwards  Novacor LLC  (Novacor)  from Edwards  Lifesciences  LLC
(Edwards).  As a result of the acquisition,  WorldHeart is now manufacturing and
distributing   the   Novacor   LVAS.   The   Corporation   sells  this   product
internationally  through Edwards,  with the exception of the United States where
the Corporation  sells  directly.  With the acquisition of Novacor from Edwards,
WorldHeart  commenced initial  commercial  operations  following four years as a
research and development company.  While the Corporation is engaged in the sales
and  marketing  of the  Novacor  product,  much of the  present  focus is on the
"INTRePID"  clinical  trial,  completion  of which is  expected  to result in an


<PAGE>


expanded therapeutic indication in the United States for use of the device as an
alternative to transplant.


HeartSaver

HeartSaver is in the final stages of pre-clinical  prototype  development  while
continuing  formal  pre-clinical  trials  and  planning  for the  initiation  of
clinical trials in Canada.


RECENT EVENT

Subsequent to the end of the quarter,  the Corporation entered into an agreement
with  Technology  Partnerships  Canada  to  receive  a $9.98  million  repayable
investment  in  support  of  prototype   development   and  clinical  trials  of
WorldHeart's HeartSaverVAD.  The Corporation is entitled to receive 31.1% of its
eligible expenditures.  Funding of this amount will be made on a quarterly basis
as eligible expenditures are incurred. Under the agreement, the Corporation will
pay a 1% royalty on revenues of its  HeartSaver  VAD beginning  from the date of
the first  commercial sale and continuing for a period of six years.  If, at the
end of the  royalty  period,  the total  cumulative  royalty  payments  paid and
payable do not equal or exceed $19.7  million,  the royalty period will continue
until either  $19.7  million has been paid or for up to four  additional  years,
whichever  occurs first.  In addition,  prior to the first  disbursement  by the
Minister of Industry,  650,000 warrants for the purchase of common shares of the
Corporation  will be issued to the  Government of Canada.  The warrants shall be
exercisable any time over a five-year period at a price,  which is equal to 110%
of the closing price on the Toronto Stock Exchange,  at the close of business on
the day before receipt.


RESULTS OF OPERATIONS

All financial  information  is prepared in accordance  with  generally  accepted
accounting principles (GAAP) in Canada and is stated in Canadian dollars.

Three-month  period ended September 30, 2001 compared to the three-month  period
ended September 30, 2000.

Revenues

All revenue is generated  from the sales of the Novacor  LVAS.  Revenues for the
quarter  ended  September  30, 2001 were  $2,636,728,  a decrease of 9% from the
quarter  ended  September  30,  2000.  In terms of units sold,  during the three
months  ended  September  30,  2001,  there were 30 units sold as compared to 35
units in the same period in 2000. Most of the decrease in unit sales occurred in
Europe.  This decrease is primarily a result of the concern, at the beginning of
the 2001 fiscal  year,  among  implant  centers as to the  continued  support of
Novacor  LVAS and a  general  slowdown  in the  industry.  The  Corporation  has
addressed  the  concerns  relating to the support of the Novacor LVAS and is now
experiencing  an  improvement  of sales from  earlier  quarters  this  year.  In
addition,  there have been positive  clinical  results of Novacor LVAS patients,
particularly those who required the device for extended periods of time.


<PAGE>


Cost of sales and gross margins

The gross margin for the quarter ended September 30, 2001 was 18%, a significant
improvement from the negative gross margin of 34% in the corresponding period in
2000. The primary areas of improvement relate to indirect and overhead expenses.
The  Corporation  has  undertaken  initiatives  during the year to  improve  the
utilization of excess manufacturing capacity in its Oakland facility by using it
to   accommodate   expanding   research  and   development   activities  of  the
organization. In fiscal 2000, this excess capacity was included in manufacturing
overhead and therefore  included in inventory costs and cost of sales.  With the
expansion of research and  development,  some of these costs are now included in
research and development expenses.


Selling, general and administrative

Selling,  general  and  administrative  expenses  consist of payroll and related
expenses for executives,  accounting and administrative personnel,  professional
fees, occupancy costs and other general corporate expenses. Selling, general and
administrative  expenses for the three months ended September 30, 2001 were $3.4
million,  an increase of 43% from the $2.4 million in expenditures for the three
months ended  September  30,  2000.  This  increase is related to the  marketing
(including  seminars  for  clinicians),  finance and human  resource  activities
required to support Novacor LVAS.


Research and development

Research and  development  expenses  consist  principally of payroll and related
expenses  for  development  staff,  proto-type  manufacturing,  trial  expenses,
regulatory  affairs and  quality  control  with  respect to  proto-types.  These
expenses  increased  39% for the third  quarter of 2001 as compared to the third
quarter of 2000, after recognizing a refundable tax credit of approximately $2.8
million in 2001.  During the  quarter,  the  Corporation  received a  favourable
ruling in respect of its eligibility for this refundable tax credit that relates
to research  and  development  expenditures  made in the period from May 1997 to
September  30,  2001 and  management  has now  concluded  that  this  amount  is
receivable.  The tax credit has been  applied to the  research  expenses for the
quarter.  Excluding the tax credit, research expenses for the three months ended
September 30, 2001 were $9.5  million,  an increase of 96% from the $4.8 million
spent in the same  quarter  of  fiscal  2000.  The  increase  is a result of the
INTRePID trials for Novacor LVAS, research activities  undertaken to further the
development of HeartSaver and the commencement of formal  pre-clinical trials of
HeartSaver.  These  trials  will  continue to result in  significant  additional
expenditures  over the balance of the fiscal year.  There were no formal  trials
for HeartSaver in the corresponding quarter in 2000.


Other comments

The recovery of future income taxes for the quarter ended September 30, 2001 was
$80,808 as compared to $820,248 for the quarter ended  September  30, 2000.  The
recovery of future income taxes relates entirely to United States operations and
reflects the reversal of temporary  differences and related  recognition of loss
carry  forward  amounts.  During the  quarter,  the  Corporation  recognized  an
equivalent  amount of future tax assets  relating  to loss  carry  forwards  and
future tax liabilities  relating to the temporary  differences in the intangible
assets acquired from Edwards.  As there can be no assurances that any additional


<PAGE>


benefits from loss carry forwards will be recognized,  no further  recoveries of
future income taxes were recognized.


<PAGE>


Nine-month  period ended  September 30, 2001 compared to the  nine-month  period
ended September 30, 2000.

Prior to the  acquisition  of Novacor on June 30, 2000, the  Corporation  had no
commercial   operations  and  therefore  had  no  revenues  or  cost  of  sales.
Consequently  the  Corporation's  revenues and cost of sales for the nine months
ended  September  30, 2000 only reflect  sales for the  three-month  period then
ended.  Readers  should  refer to the  previous  comparison  of results  for the
three-month   periods  ended  September  30,  2001  and  2000  for  management's
discussion and analysis of changes.


Selling, general and administrative

Selling, general and administrative expenses for the nine months ended September
30, 2001 have increased 76% from the nine months ended  September 30, 2000. This
increase is primarily  attributable  to  additional  product and facility  costs
arising   after  the   acquisition   of  Novacor.   The  selling,   general  and
administrative  expenditures  incurred to support the research  and  development
business  segment  increased  approximately  $811,000 or 16% for the nine months
ended September 30, 2001, as compared to the same period in the prior year. This
increase  relates   primarily  to  the  efforts  and  support  required  by  the
administrative  departments for the commencement of the  pre-clinical  trials of
HeartSaver VAD, during the first quarter of 2001.


Research and development

Research and  development  expenses  increased 100% for the first nine months of
2001,  compared to the same period in 2000.  This increase is a direct result of
the  commencement  of  pre-clinical  trials of  HeartSaver  VAD during the first
quarter  of 2001 and the  INTRePID  trials of  Novacor  LVAS.  With  respect  to
HeartSaver,  expenditures were incurred in 2001, that were not incurred in 2000,
relating to the final design and manufacture of proto-type devices,  increase in
occupancy  space to test devices  before the trials,  training of clinicians and
staff, collection of data and test results and travel to various clinical sites.
With  respect to the  Novacor  LVAS,  enrolment  for the  INTRePID  trial  began
increasing  during the second quarter of 2001. This increase in trial enrolments
resulted in higher expenditures for device costs, travel costs and miscellaneous
hospital and clinical charges.  No similar costs were incurred for the first six
months of 2000 and were minimal for the three months ended September 30, 2000.


LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2001, the  Corporation  had a working  capital balance of $19.5
million  compared to $51 million at December 31, 2000. The Corporation had cash,
cash  equivalents  and short-term  investments of $13.9 million at September 30,
2001 and $46.5 million at December 31, 2000 of which approximately  $226,000 has
been pledged as collateral for the capital lease arrangement.


Cash used during the quarter ended  September 30, 2001 was  approximately  $11.2
million  consisting of $9.7 million consumed in operations,  approximately  $1.2
million to  repurchase  common  shares with the balance  used for  purchases  of
capital assets and capital lease  repayments.  This compares to cash consumption
of approximately  $10.4 million and $12.5 million  respectively in the first two
quarters of fiscal 2001. The cash used in operations  reflects both cash used to
fund the  continuing  research  and  development  activities  and an increase in


<PAGE>


working capital in the quarter of approximately  $1.2 million.  This increase in
working  capital items of $1.2 million  relates  primarily to the accrual of the
$2.8  million  refundable  tax credit and a $1.1  million  reduction in accounts
payable and accruals partially offset by a $670,000 reduction in inventory and a
$2 million reduction in accounts  receivable in the quarter.  Both the inventory
and receivable  reductions  reflect  continued  efforts to manage and reduce the
Corporations' investment in working capital.

Capital expenditures of $286,000 and $763,000, for both the three and nine month
periods ending September 30, 2001  respectively,  consist of office and computer
equipment  to support  the  expanded  selling and  marketing  and  research  and
development  activities as well as equipment  relating to the manufacture of the
Novacor LVAS. The comparable  capital  expenditures for the three and nine month
periods ending September 30, 2000 were $383,000 and $671,000, which also reflect
the purchase of office and computer equipment.

During the third quarter of 2001,  the  Corporation  repurchased  163,000 of its
common shares in  accordance  with the normal course issuer bid for a total cost
of approximately  $1,220,000.  Of this total amount paid, approximately $425,000
has been  charged  directly to  deficit,  representing  the premium  paid on the
redemption of these common shares, with the balance charged to share capital. It
its management's  opinion that the price of the Corporation's  common shares was
subject to unusual and unwarranted trading activities after the tragic events of
September 11, 2001 such that the  repurchase of its common shares was considered
to be an appropriate  use of corporate  funds in light of potential  benefits to
remaining shareholders.

The viability of the Corporation is dependent upon its access to capital through
various  financing  options.  WorldHeart  is  currently  seeking  ways to obtain
additional  sources of  financing,  including  possible  equity  financing.  The
Corporation  expects  that results for the next quarter will be similar to those
experienced in the current  quarter and  accordingly  the Corporation has a cost
reduction plan ready for implementation, which would significantly reduce costs.

Management anticipates these additional sources of financing,  together with the
cash resources on hand and increased  commercial  revenues will be sufficient to
fund operations through to the end of 2002 and into 2003.  However, if financing
is not  received,  the cost  reduction  plan is not  completed  or  successfully
implemented  in the near  term or the  Corporation's  operating  results  do not
improve, the Corporation's  ability to continue as a "going concern" would be in
substantial doubt. Further financing will be required during 2002.


OUTLOOK

WorldHeart  expects to realize  substantial  losses in the remainder of 2001 and
2002 as a result of the  clinical  trial  programs for both the Novacor LVAS and
HeartSaver,  expenses  related to the  regulatory  submissions to Health Canada,
increased  production of HeartSaver  prototypes  for use in trials and increased
spending to market the Novacor LVAS.


<PAGE>


NEW ACCOUNTING PRONOUNCEMENTS


Goodwill and other intangible assets

The Canadian  Institute of Chartered  Accountant's  Accounting  Standards  Board
(AcSB) has  approved a new Handbook  Section  replacing  BUSINESS  COMBINATIONS,
Section  1580 that will require all  business  combinations  to use the purchase
method of  accounting.  The AcSB has also  approved a new Section  dealing  with
GOODWILL AND OTHER INTANGIBLE ASSETS,  which will require intangible assets with
an indefinite  life and goodwill to be tested for impairment on an annual basis.
Goodwill and indefinite life intangibles will no longer be amortized. Intangible
assets with a definite  life will  continue to be  amortized  over their  useful
life.  The new  Sections  are  consistent  with those  recently  approved by the
Financial  Accounting  Standards  Board  (FASB) in the  United  States.  For the
Corporation these pronouncements will be effective for the fiscal year beginning
January    1,    2002.     Prior     periods     will    not    be     restated.


Accounting for stock-based compensation

The AcSB has  approved,  subject to written  ballot,  a new Handbook  Section on
Stock-Based  Compensation  and  other  Stock-Based  Payments.  The  new  Section
requires that stock-based  payments to non-employees  and direct awards of stock
to employees and non-employees be accounted for using a fair value-based  method
of  accounting.  The  Section  also  requires  enterprises  to account for stock
appreciation  rights  (SARs)  and  similar  awards  to be  settled  in  cash  by
measuring,  on an on-going  basis,  the amount by which the quoted  market price
exceeds the option price. The new Section encourages,  but does not require, the
use of the  fair  value-based  method  to  account  for  all  other  stock-based
transactions with employees. The new Section is based on FASB Statement No. 123,
Accounting for  Stock-Based  Compensation,  which is one of the two US Standards
covering stock-based compensation arrangements in that country. The AcSB expects
to include the new Section in the Handbook by December 2001. For the Corporation
these  pronouncements will be effective for the fiscal year beginning January 1,
2002 and will only apply to awards granted on or after the date of adoption and,
therefore,  will not apply to  modifications  and  settlements of awards granted
before   fiscal    periods    beginning   on   or   after   January   1,   2002.