If these guys expect to get to 50mm in revs to command a better buy out price they had better get a marketing strategy going. Will they partner with Applied? Why would they move a 30mm stapler to the front of their devlopment line-up when the biggest market sellers are the larger 45mm and 60mm lines? At 500 a piece for device and a couple reloads they will have to sell 100,000 units (device/reload packages) to get to 50MM annual sales. Not gunna be easy for small no-name start-up.
Is it possible they align with Applied? Applied fills a gap in their product offering and Cardica gets the help of an established partner. A temporary marketing agreement between the two could then become a buyout/merger or a complete divorce depending on how it all goes.
Agreed. Uless they are smart enough to tap into an establish network. They wont commeand the same margins but the that sacrifice could have a greater outcome. They could gain value in an established partner that has an established network at the cost of lower margins. This could allow them faster market penetration with backing of an established name and sales/distribution network.....which could also help begin the branding of their name in th estapling arena.....if they try to go it alone it will end up a disaster.