Cardica and Intuitive Surgical Amend License Agreement
January 07 2016 - 8:00AM
Cardica, Inc. (Nasdaq:CRDC) today announced that the company has
amended its license agreement, initially signed in August 2010,
with Intuitive Surgical, Inc. (Nasdaq:ISRG) to include an agreement
providing for the evaluation and potential development of a
surgical stapling cartridge for use with Intuitive Surgical’s da
Vinci Surgical Systems.
Under the terms of the amendment, Intuitive Surgical has paid
Cardica $2 million to extend its rights to improvements in
Cardica’s stapling technology and certain patents until August 2018
and to provide for a feasibility evaluation period of up to six
months.
The feasibility evaluation allows Intuitive Surgical to test and
evaluate Cardica’s MicroCutter XCHANGE technology. Upon completion
of the evaluation, Intuitive Surgical will have the option to
initiate a joint development program, for an 8 millimeters in
diameter surgical stapling cartridge for use with the da Vinci
Surgical System. Cardica may receive further funding for
development of the cartridge and tooling as well as a unit-based
royalty on commercial sales.
“We believe the relationship with Intuitive Surgical highlights
two innovative technologies coming together to facilitate less
invasive surgical procedures, for the ultimate benefit of surgeons
and their patients,” said Julian Nikolchev, president and CEO of
Cardica. “Importantly, with our new management team in place, this
amendment to our agreement with Intuitive Surgical aligns with our
plans to extend the MicroCutter product line while maintaining
internal focus on completing the development of the MicroCutter
XCHANGE® 30.”
About CardicaCardica designs and
manufactures proprietary stapling and anastomotic devices for
cardiac and laparoscopic surgical procedures. Cardica's
technology portfolio is intended to reduce operating time and
facilitate minimally-invasive and robot-assisted surgeries.
Cardica’s MicroCutter XCHANGE® 30, includes a cartridge-based
articulating surgical stapling device with a five-millimeter shaft
diameter and staples, is manufactured and cleared for use in the
United States for multiple open or minimally invasive surgical
procedures for the transection, resection, and/or creation of
anastomoses in small and large intestine as well as the transection
of the appendix. In Europe the device has applications in
multiple general, gynecologic, urologic, thoracic and pediatric
surgical procedures. In addition, Cardica manufactures and markets
its automated anastomosis systems, the C-Port® Distal Anastomosis
Systems and PAS-Port® Proximal Anastomosis System for coronary
artery bypass graft (CABG) surgery, and has shipped over 56,500
units throughout the world.
Forward-Looking StatementsThe statements in
this press release regarding Cardica’s beliefs as to the benefits
of Cardica’s surgical stapling technology for use with Intuitive
Surgical’s da Vinci robotic surgical system, as well as the
benefits expected to be obtained from the use of the MicroCutter
XCHANGE® 30, are "forward-looking statements." There are a number
of important factors that could cause results to differ materially
from those indicated by these forward-looking statements,
including: that the testing to be performed by Cardica at
Intuitive’s request may not be successful in the six-month
feasibility period and development of the 8mm device may not
proceed forward; that Cardica may not be successful in its efforts
to make the improvements necessary to its enhanced MicroCutter
device due to unanticipated technical or other difficulties; risks
inherent in obtaining regulatory approvals; as well as other risks
detailed from time to time in Cardica’s reports filed with the U.S.
Securities and Exchange Commission, including its Quarterly Report
on Form 10-Q for the quarter ended September 30, 2015, under the
caption “Risk Factors,” filed on November 12, 2015. Cardica
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein. You are encouraged to read Cardica’s reports
filed with the U.S. Securities and Exchange Commission, available
at www.sec.gov.
Contact:
Bob Newell
Vice President, Finance and Chief Financial Officer
(650) 331-7133
investors@cardica.com