I'd rather see Cardica raise cash but a sale of themselves would also be attractive.
I think Cardica could sell themselves for about $500 million. They have to skillfully start a bidding war with Covidien, Johnson & Johnson, and the stent makers. Currently Cardica's market cap is $35 million. If you think I'm crazy consider the following November 8 news release:
On the other hand Cardica can sell stock to Aspen for cash, see the 10-K. To minimize dilution, Cardica should raise cash on news driven stock pops only, such as the European launch, and raise just enough cash to get them to the next pop.
This is how I forsee the cash raising program:
Raise $1M in Dec 2012 when the stock pops on news of EU launch.
Raise $2M in Jan 2013 on news of full enrollment
Raise $2M in Apr 2013 on news of positive data from microcutter trial
Raise $4M on June 1st on news of FDA submission for microcutter.
Raise $40M on Sept 1st on news of microcutter FDA approval.
The important thing is too have enough cash to get to the FDA approval. After that, Cardica will become a self sustaining growth company.
Is it possible a larger player could buy a call option on Cardica. Cardica could write
a call to a big player who may be waiting to see if their deviceses qualify. Big player benefits by gaining control with reduced risk....Cardica benefits with call premium. Big player could exercise the call to buy in the future at set price....no bid war.
Getitdone, with your experience with one of the big 2. Is Cardica's microcutter technology
being discussed? If yes, are they trying to come up with their own technology to compete.
I started hearing about this product over 2 yrs ago. Your input is always appreciated.
Boston Scientific Corp. has acquired Vessix Vascular Inc., a developer of catheter technology. Boston Scientific will pay $125 million upfront, plus $300 million in additional clinical and sales-based milestones.