Surgical devices maker
Cardica
(
CRDC
) has achieved the second milestone for its Microcutter product
line under its distribution pact with Century Medical, a leading
supplier of medical equipment in Japan. The Microcutter line of
novel endoscopic stapling devices is geared for use in a variety of
surgeries that require cutting and stapling.
The agreement, which was inked in September 2011, provides
Century Medical with exclusive rights to distribute the Microcutter
products in Japan. In exchange, Century Medical agreed to provide
Cardica with a loan of up to $4 million. Century's obligation to
offer the loan is contingent upon certain development milestones
for the Microcutter devices.
Cardica reached the first Microcutter milestone in September
2011, which has allowed it to draw down $2 million under the loan
facility. With the attainment of the second milestone, the company
can now draw the remaining $2 million under the loan
commitment.
The balance drawdown of the loan by Cardica will be due in
September 20 16, contingent upon specific conditions. The company
plans to use the loan to fund the ongoing development and
commercialization activities across Europe and the U.S.
Cardica's Microcutter product line has been geared to offer
genuine multi-fire endoscopic stapling for a number of procedures,
such as thoracic, colorectal as well as general surgery.
The Microcutter line-up is expected to cut and staple on a
continuous basis, thereby permitting the surgeon to complete
consecutive deployments without removing the device to reload the
cartridge. The Microcutter XPRESS 30 is the first product in the
Microcutter family which Cardica intends to market.
Cardica makes stapling devices for endoscopic and cardiac
surgery procedures. Its proprietary technology is designed to
reduce operating time and enable minimally-invasive and
robot-assisted surgeries.
The company markets its automated anastomosis systems for CABG
surgery and has sold over 37,000 units globally. Cardica competes
with larger players such as
Johnson & Johnson
(
JNJ
) and
Covidien
(
COV
) in the laparoscopic stapling and sealing devices market.
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COV
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CRDC
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JNJ
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