I don't understand the concern about Broadfin taking cardica private. Cardica is still a development company that is losing money. Hedgefunds are not in the business of taking on a company that is losing money. They will however invest in a company that can increase in value. Owning stock and being responsible for making a profit of an operating company are two very different things. Broadfins expertise is in investing. They see an undervalued asset that has huge upside.
Agree with Ernie, BF knows the answer to that. If they didn't sell off in the secondary IPO we would have raised the same amount of money with half the shares. They sell off or keep a lid on the price every time we have good news to drive shareholder frustration to gain votes for their BOD members. They are really beginning to get their legs with product development and new introductions. If they weren't screwed in the secondary by BF they could have hired more reps for the commercialization. These guys thus far have not helped us shareholders and for that reason I cannot give them my vote.
I think Hausen would make a great Chief Scientific Officer. If they are going to become a real commercial sales organization then yes they need a new CEO. If they are really all about development and then selling company, there is no need for change.
CRDC management will have to wow on tomorrow's earnings to survive proxy battle on December 11th. They need to show real movement in their ability to execute a strategy with the microcutter launch. I think their go to market sales force is just to small to execute. Really need a US Marketing Partner! Cannot go it alone!
now the short shaft is launched and we are down? This smells to me! Let's see if Levi & Korinsky follow this press release with one of their own again to blunt the good news today. Timing of Broad Fin and class action by a major law firm on a microcap company is very coincidental!
Sentiment: Strong Buy
As much as I'm not thrilled about BF's tactics, let's be very honest with the simple fact that if there was more demand for the stock, Cardica management wouldn't have to worry about BF.
We are in an interesting place with Cardica. While this feels like the darkest hour we are actually in the best position. Now have an experienced BOD with healthy conflict that will create pressure that creates intense focus. Cardica has been all over the place. Introducing many new products, iterations of Microcutter 30, 45 etc. With limited capital they need to get it right and have a broad launch. Can't keep introducing new iterations with limited launches. Very confusing to customers and investors. Also very costly to keep scrapping old inventory and then building enough for current customer base. I think getting to a final design of the 30 and seeking a US marketing partner is the key. Can't compete in a duopoly by adding a few reps each quarter. Never will hit the "S" Marketing curve of adoption. I feel better about broadfin because they really have smoked out all the BS and lack of transparency on earnings calls. Also feel we need a real CEO commercially proven that can sell large customers, marketing partners and investors. Make Hausen the Chief technology officer where he can focus on getting the products right. BOD was old, out of touch and comfortable. Company has enough money to complete development of exchange 30, 45, and build inventory. Find a marketing partner that will take on the cost & execution of commercialization. Probably best time to invest in CRDC. Once we complete the shareholder meeting, I'm sure management will hold a conference call to explain to investors and customers. Tax selling will also be behind us.
Broadfin Healthcare Master Fund, LTD, or Broadfin, has initiated a proxy contest with respect to the election of directors at our 2014 annual meeting of stockholders, or the Annual Meeting. Broadfin is proposing to solicit proxies in opposition to us for the purpose of voting in favor of its three nominees for election to our board of directors. Further, in discussions with Kevin Kotler of Broadfin, Mr. Kotler had expressed a desire to replace our chief executive officer, Dr. Hausen. Our business, operating results or financial condition could be harmed by the proxy contest because, among other things:
responding to the proxy contest is costly and time-consuming, is a significant distraction for our board of directors, management and employees, and diverts the attention of our board of directors and senior management from the pursuit of our business strategy, which could adversely affect our results of operations and financial condition;
perceived uncertainties as to our future direction, our ability to execute on our strategy, or changes to the composition of our board of directors and our chief executive officer, may lead to the perception of a change in the direction of our business, instability or lack of continuity which may be exploited by our competitors, cause concern to our current or potential future customers and suppliers, and may result in the loss of potential business opportunities and make it more difficult to attract and retain qualified personnel and business partners;
the expenses for legal and advisory fees and administrative and associated costs incurred in connection with responding to the proxy contest and any related litigation may be substantial; and
we may choose to initiate, or may become subject to, litigation as a result of the proxy contest or matters arising from the proxy contest, which would serve as a further distraction to our board of directors, management and employees and would require us to incur significant additional costs.
Here's what Caruso said, according to a webcast of the call and a transcript:
As you know, we made the determination some time ago that we’re going to focus on surgery, general surgery, and specialty surgery, and orthopedics and have less of a focus on cardiovascular and we got out of the drug-eluting stent business as we saw that become a commoditized business.
Caruso continued on the theme that surgery holds a big promise as does orthopedics in terms of future growth. He even pointed to Medtronic buying Covidien as a confirmation of his belief in where future growth lies.
So nothing has really changed. We believe these are the two main areas in MD&D that we’re going to focus on: surgery and orthopedics with selective investments in selective growth areas within cardiovascular medicine.
My wild guess is that the CRDC update you are looking for will be given by a new CEO! The news and update will be more credible by a new leader with a track record. I think they are in the middle of a search and therefore the reason for the silence. I may be wrong, but having worked through similar situations at Medical Device companies this is my gut instinct on what's happening.
Cardica, Inc. (NASDAQ:CRDC): 2 Analyst have given the stock of Cardica, Inc. (NASDAQ:CRDC) a near short term price target of $1.38. The standard deviation reading, which is a measure by which the stock price is expected to swing away from the mean estimate, is at $0.53. The higher price target estimate is at $2 while the lower price estimates are fixed at $1.
Many Analysts from different Brokerage Firms have commented on the company rating and price targets.Craig-Hallum downgrades its rating on Cardica, Inc. (NASDAQ:CRDC). The global brokerage major lowers the current price target from $2.5 per share to $1 per share. Analysts at the Craig-Hallum have a current rating of Hold on the shares. The shares were previously rated Buy.
Cardica, Inc. (NASDAQ:CRDC), In a major negative the short interest in Cardica, Inc. shot up by 68.7% or 167,760 shares. The final shorts are 0.5% of the total floated shares. The positions increased from 244,110 shares on December 15,2014 to 411,870 on December 31,2014. Inculcating the per-day average trading of 440,784 shares, the days to cover are 1.
In this time of silence, I imagine their may some interviewing going on within the sr leadership team. I can see a new dynamic CEO and Hausen as the CTO. As disappointed as everyone is here, one must not forget that the IP of staple on a strip has real value. The stapling divisions of JNJ and MDT are their cash cows that much of their bundled contracts are driven. ISRG is a real believer in microcutter technology. This is the year you will see it on the DaVinci. Japan will approve microcutter. Also, the Medical Device Tax is very likely going to be repealed. Current stapler patents expire this year. Applied loses is JNJ bundled contract provision this year. It has been a real bumpy road, however, a best in class IP with FDA clearance is really worth a lot more than is currently being assigned. It's no easy business. If you've hung in this far, might as well hang in this year as we really are getting much closer to the finish line!
Credit Suisse Assigned $6 to Kadcyla Royalties, $7.00 Pipeline and $1 to NOL & Cash. This is an exaggerated affect due to options. It will settle in the $7-8 area after tax selling. This may actually make it more appealing to an acquirer such as Sanofi, Novartis or Amgen.
In addition this proxy battle will cost money further taking capital away from executing a successful microcutter launch. How does that help us shareholders?
Agreed, Cardica has to find out a way to move this stock prior to the december shareholder meeting. If the stock continues to stay at this price, BF will have their way. Only stock movers (that's if BF allows the stock to move with out them selling to offset any gain as they did last time) are an ISRG announcement on DaVinci, Japan Approval, Exchange 45 FDA submission, Joint USA Marketing and Sales agreement or spike in sales. It's now up to Cardica Management to deliver in order to save their jobs. Either way the technology is worth 350-500 Million.
Who's Thompson-Pique? I googled the name and nothing comes up.
Didn't listen to conference call? If it weren't for the GSK service revenue, they would be down 30% thus the 20-30% restructuring. All of their business resides with the cardiovascular specialty labs that are now under fire from the OIG. Their business is declining. As the one analyst also asked if they had seen any impact from a Major Payer (Cigna) suing their largest customer Health Diagnostic Lab 85million. The PLAC activity is to hopefully save some business when the current method goes off patent next year. The CHF test is just going into development so much work yet to be done before going to market and yet to be determined if its a valuable marker of BNP. I do not see anyone wanting to acquire this company.
AMG 595 and AMG 172 Glioma and Renal Cell Carcinoma, respectively - Data from partnered programs Q4:14
IMGN779 AML Preclinical data at ASH Dec 2014
IMGN529 Non-Hodgkin's lymphoma Additional Phase I data - ASH Dec 2014
So are all the stories about women not losing their hair on Kadcyla or feeling like hell after a chemo treatment insignificant when it comes to price?
If you have ever been an insider of a company via a BOD you would then know that their are restricted trading windows. Broadfin will have to comply with those. I see no problems here.