hey michelle. Warren Buffett stomped over your Mr Market long ago. Your cynical arguments sound more desperate every week. Your "big brand" companies don't have a 5 mm stapler-cutter either, or FDA cleared anastomosis. haaaa! haaaa!
CEO Bernard Housen would lose big time if the stock price didn't go up, since he is loaded to the gills with stock options
The stock price tumbled, and some believe that its because the FDA will not clear the micro-cutter. Its been cleared in Europe and being used in Germany. If its good enough for fussy Germans, I'm sure it'll be good enough for the FDA. This ain't no pill with wacky side effects.
But I wouldn't be surprised if Mr. Hillal of Applied Medical Corporation sold some of his 500,000 shares in order to squash the stock price. He'd like to offer a ridiculously low price to buy Cardica.
Don't forget that current stapler-cutters haven't changed in 20 years and that they are too bulky for delicate work. The microcutter satisfies an unmet medical need. The current stapler cutters are also going off patent soon, and the producers will probably eye Cardica as a takeover target. Also, don't forget about Cardica's anastomosis products. I am sure they will be successful as the older fuddy duddy cardiac surgeons retire and the new blood come in.
Cardica's anastomosis products are innovative and would make surgeons job easier, but they haven't taken off. My guess is because the those products aren't covered by insurance, and that Cardica doesn't have the resources to market those products and to train surgeons. However the PAS Port sales have been on a gradual uptrend, selling over 1000 units per quarter.
Did you mean specificity for accuracy? The blood culture takes about 8 hours so we are talking about 9 total hours for Biofire versus 10.5 total hours for Nanosphere.
Competitor Biofire diagnoses Sepsis in 1 hour after blood culture.
Nanosphere diagnoses Sepsis 2.5 hours after blood culture.
The competitor is faster. Wonder if Nanosphere can compete successfully.
In the latest earnings conference call, Hausen said that they had already received the FDA's questions and had already replied.
I remember that when Cardica first announced the microcutter development, they said it would have a lot less parts than the current staplers.
Cardica management compensation is way too high. They each need to take a $100K cut. They stand to make a lot of money from their options. The cash burn rate is running at ~$12M per year.
Thanks. I've been trying to learn more. I got into VMware because the Value Line recommends it (Portofolio 1).
Jeffrey Bird of Sutter Hill Ventures has dealt with Covidien's Pharmaceuticals Business. He could grease the skids if Covidien were to acquire Cardica.
I think Bernard Hausen and Bob Newell should make sure that the large medical device makers know about Cardica's portofolio in case Applied Medical attempts to acquire Cardica at a give-away price. I think Applied Medical will try to suppress Cardica's stock price but will fail when the FDA clears the microcutter.
I don't see any bad news coming. Revenues and earnings will be good in the December quarter. The competition is just getting started but it will be a while before they gain momentum. Just as in the stent market, there's room for a couple of players.