June 19, 2007 – Cardica Inc. and Cook Medical today announced that they have entered into an agreement to develop and commercialize a specialized device designed to close the patent foramen ovale (PFO), a relatively common heart defect present in approximately 15 to 20 percent of the general population, which targets patients at risk for stroke or systemic embolism.
Under the terms of the agreement, Cardica will receive $900,000 in upfront fees and is eligible to receive approximately $2.7 million in additional milestone payments during the development effort over the next 12 to 18 months as well as royalties on future worldwide sales of the device. Cardica will be responsible for the design, production and manufacturing of the PFO closure device, which will be directed by a development committee with representatives from both companies. Cook will be responsible for preclinical and clinical development, as well as regulatory approval of the product, and will have exclusive worldwide commercialization rights to market the PFO closure device.
“We are pleased to once again partner with Cardica…we believe it will allow us to provide an effective PFO closure device for the patients at risk for stroke or systemic embolism, as well as potentially those suffering from debilitating migraine headaches,” said Brian Bates, senior vice president, business development of Cook Medical. “This is an underserved patient population that would greatly benefit from a less invasive, straight-forward procedure to permanently and effectively close a hole in their heart.”
For more information: www.cardica.com and www.cookmedical.com