Surgical devices maker Cardica (NasdaqGM:CRDC - News) has achieved the second milestone for its Microcutter product line under its distribution pact with Century Medical, a leading supplier of medical equipment in Japan. The Microcutter line of novel endoscopic stapling devices is geared for use in a variety of surgeries that require cutting and stapling.
The agreement, which was inked in September 2011, provides Century Medical with exclusive rights to distribute the Microcutter products in Japan. In exchange, Century Medical agreed to provide Cardica with a loan of up to $4 million. Century's obligation to offer the loan is contingent upon certain development milestones for the Microcutter devices.
Cardica reached the first Microcutter milestone in September 2011, which has allowed it to draw down $2 million under the loan facility. With the attainment of the second milestone, the company can now draw the remaining $2 million under the loan commitment.
The balance drawdown of the loan by Cardica will be due in September 2016, contingent upon specific conditions. The company plans to use the loan to fund the ongoing development and commercialization activities across Europe and the U.S.
Cardica's Microcutter product line has been geared to offer genuine multi-fire endoscopic stapling for a number of procedures, such as thoracic, colorectal as well as general surgery.
The Microcutter line-up is expected to cut and staple on a continuous basis, thereby permitting the surgeon to complete consecutive deployments without removing the device to reload the cartridge. The Microcutter XPRESS 30 is the first product in the Microcutter family which Cardica intends to market.
Cardica makes stapling devices for endoscopic and cardiac surgery procedures. Its proprietary technology is designed to reduce operating time and enable minimally-invasive and robot-assisted surgeries.
The company markets its automated anastomosis systems for CABG surgery and has sold over 37,000 units globally. Cardica competes with larger players such as Johnson & Johnson (NYSE:JNJ - News) and Covidien (NYSE:COV - News) in the laparoscopic stapling and sealing devices market.
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