Cardica’s MicroCutter
Cardica Inc. (NSDQ:CRDC) drew the final $2 million of a $4 million secured note purchase through Century Medical Inc. after reaching a milestone with its MicroCutter laparoscopic stapling device.
The distribution agreement with Century Medical allowed the Redwood City, Calif.-based med-tech company to draw the remaining $2 million of its loan commitment.
Cardica’s MicroCutter stapling device is designed to cut and staple without requiring hospital staff to replace cartridges during bariatric, thoracic and general surgery.
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"The achievement of this milestone provides us with access to additional capital as we prepare for product introductions, and demonstrates our continued commitment to bring our proprietary stapling and miniaturization technology to the surgical stapling market." Bernard Hausen, Cardica president & chief executive officer said in prepared remarks.
The note purchase, announced in early September, allows Cardica to sell up to $4 million in secured notes to the Japanese distributor.
Cardica drew the first $2 million after satisfying a milestone two weeks after the original agreement was signed.
The balance of all amounts drawn by Cardica will be due in Sept. 2016.
Cardica’s MicroCutter was used on patients in Europe the first time earlier this month. The cardiac device maker enrolled and discharged the first patients from two investigative sites in a European clinical study to evaluate the efficacy and safety of MicroCutter for transections, resections and anastomoses during gastrointestinal surgical procedures.
Despite meetings its first MicroCutter milestone, Cardica lost big in its first quarter. The cardiac device company saw a 25 percent drop in sales in the three months ended Sept. 30.
Cardica posted a 24.92 percent decrease in sales to $747 thousand, compared to $995 thousand during the same period last year.
Company profits were way down $3 million, or 11 cents per diluted share, compared to an increase of $6.2 million, or 24 cents per diluted share in Q1 of 2010.