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Cardica Inc. Message Board

  • gene_ramirez_vox gene_ramirez_vox Feb 14, 2014 4:22 PM Flag

    When will Cardica break even.

    Since Cardica burned $17M in cash during fiscal 2013 my guess is that they'll need about $20M revenues to break even.

    Assuming $700 of revenue per unit (microcutter, pas-port, or c-port) it would take 28,000 units per year to reach break even ($20M per year).

    Assuming 5,000 units sold in 2014, tripling in 2015, and doubling in 2016, Cardica would break even towards the end of 2016.

    Year ... Units Sold
    2014 ... 5,000
    2015 ... 15,000
    2016 ... 30,000 (28,000 assumed for break even)

    How would you estimate break even?
    GR

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    • Vox - It would be interesting to see what the Exchange 30 device price approx. is. Also what the cartridges
      number and price associated with each device is as well. What are the competitions staple and coresponding cartridges approx. go for too as a guide since CRDC will probably price them in a similar fashion. Gross margin est. too?

      • 2 Replies to mojo3176
      • Just poking around I found a 2011 study on cost comparison of staplers in gastric bypass by J. K. Champion MD and Mike Williams MD. The staplers compared were the USSC Endo-GIA Universal six row stapler and the Ethicon ETS-Flex six row stapler. The table from the study doesn’t breakdown the individual handle and cartridge costs but lumps them together. So the per patient cost was $1544.32 for the Endo-GIA and $1225.32 for the ETS-Flex.

        From the study:

        Endo-GIA (n=50) ETS-Flex (n=50)

        Total # cartridges 442 448
        Total # handles 50 81
        Total Cost($US) $77,215.78 $61,266.22



        Verification via eSutures prices -- for Ethicon ETS FLEX (45mm)

        Handle/cutter $290
        Cartridges ($1140 / Box of 12) $95 ea.

        81 X $290 = $23,490
        448 X $95 = $42,560
        Total = $66,050

        Close enough at today's prices.

      • andersongordon@ymail.com andersongordon Feb 17, 2014 7:40 AM Flag

        Good idea. If anyone has any info on these questions please post them. With these costs to produce and potential revenues from sales one could build a break even/ profitability model for Cardica.

        GSA

    • 28,000 units needed for breakeven would represent only 3.3% of the 850,000 surgical procedures for which the MicroCutter would be an ideal device.

 
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