Be careful of Company presentations: Just 1 example:
The Society of Laparoendoscopic Surgeons website estimates the US Apendectomy market to be in excess of 270,000 cases per year (lets say less than 280,000 ?) . Treatments are 1)laparoscopic, 2)open surgery, 3)non-surgical (abscess). The Society of American Gastrointestional and Endoscopic Surgeons website states that ruptured appendix's are 270/1000 (27%) and are treated by suture. Furthermore, 110/1000 patients (11%) start off as laparoscopic but convert to open surgery due to rupture.
The Company's 500,000 case number is really (270,000 less 27%, less 11%, less non-surgical at 1% ? 2%) 165,000+/-. Does every clinic, surgery center and hospital in the US have a staple device readily available for an emergency appendectomy ?
Apologies if I was a little harsh.
80% of all coronary surgeries are done using a heart pump and the connections are done by hand sewing. Cardica plays in the 20% off pump market, of which they have 100% of the non-hand-sewn connections and it generates $2.1M per year. COS is higher than the selling price. Heart surgery is not generally a young persons disease and CMS/Medicare/Medicaid does not reimburse the hospital for the device.
From the Company's own 10-K.
* The PAS-port was FDA approved in Sept 2008, C-port Nov 2006. Today is Feb 2014.
* The competitors withdrew everything by 2004. J&J, Stryker, Guidant.
* None of Cardica's products are paid for by Medicare or Medicaid.
* Boston Scientific/Guidant sold their 25% ownership of Cardica in Oct 2007 and cancelled the distribution agreement.
* 80% of all coronary surgeries are done on pump, leaving only 20% for potential Port connections.
* Since FY05, the Company has generated $29.6M of product revenues vs. COS of $31.9M for their heart related products. Plus R&D and SG&A expenses.
* Your recent headcount post highlights they gave up on the market in 2008 by laying off the sales force.
* They have 100% of the market at $2.2M per year but the products cost more to make.
At least post something relevant to this company or at a minimum something semi-intelligent.
All facts and not board hyperbole. Fact, great time for the stock but terrible time for the company. They now have to sell these devices, something they have proven consistently they can not do with this management team since the last 510k approvals in 2006 and 2007. A 510k approval is a copycat of an approved product, proven to be a copy and not superior in function. Did any of the other staple device companies trade down on the news, none have. They could care less. Furthermore, Cardica has 100% market share in the PAS/C-port market worldwide. Excluding Japan ($2M) that is all of $1M per year. Now they have to compete against the big boys for scraps, remember a 510k is a copycat designation. When was the last time IRSG mentioned this company, anyone ? not since the R&D deal in 2008. Point is money has been made. I wish them well but not with my money.
Very positive long-term clinical data for sure, however, we as investors unanimously concur an investment in CRDC for the PAS-Port, C-Port, Flex-Port, Cook collaboration, ISRG takeover, etc. has been moronic at best. Flame me all you want but you can't hide from a bid price of $0.97, vs. IPO price of $10.00 based upon the future of the Port products. Thanks for posting a factual article as good news is nice to see but its also been a complete disaster of an investment. Check the 10-K, Medicare and Medicaid will not reimburse the hospitals for use of the Port family as they do not see a cost benefit. Glad the patients are living longer than this investment.