REDWOOD CITY, Calif., April 2 /PRNewswire-FirstCall/ -- Cardica, Inc. and Century Medical, Inc. (Century) today announced that based on the success of their partnership, they have extended their agreement to distribute the PAS-Port(R) Proximal Anastomosis System in Japan for an additional five years, through July 2014.
"We have been extremely successful in marketing the PAS-Port system in the Japanese market, where the majority of all bypass procedures are performed on a beating heart. Currently, over 330 doctors at 220 hospitals throughout Japan have been trained on the PAS-Port system, and today, we have over 20 percent market share of all proximal anastomoses performed using a vein bypass graft during CABG surgery in Japan," said Mr. Toshio Konishi, President and Chief Executive Officer of Century Medical, Inc. "We are pleased and proud that the distribution agreement was extended for an additional five years. This allows us to continue to respond to the increasing demand for this well- performing device."
In conjunction with the distribution extension, Cardica and Century have agreed to restructure Cardica's outstanding $3 million note to Century. Cardica will make a principal payment of $1 million toward its outstanding indebtedness to Century, with the remaining $2 million due in June 2010, two years beyond the original maturity date.
"We are pleased to extend our distribution agreement with Century, as they have done an excellent job establishing and growing the market for our PAS- Port system in Japan," commented Bernard A. Hausen, M.D., Ph.D., President and Chief Executive Officer of Cardica, Inc. "In addition, by restructuring our note with Century, we will be able to apply more of our cash reserves to the commercialization and development of our automated anastomosis systems, which we believe have significant growth potential in the years ahead."
Cardica and Century entered into a distribution agreement to market the PAS-Port system in Japan in June 2003, and the product was launched in the Japanese market in February 2004. Century has a direct sales organization of approximately 16 representatives who are responsible for the development of the anastomotic device market and work directly with the cardiac surgeons. Century provides clinical training and support for end-users in Japan. Cardica provides Century with promotional support, ongoing clinical training, representation at trade shows and guidance in Century's sales and marketing efforts. Upon signing the original agreement, Cardica issued a $3 million note to Century, with the principal originally due in June 2008.
About PAS-Port Proximal Anastomosis System
The PAS-Port system is a fully automated device used to perform an end-to- side proximal anastomosis (or connection) between a saphenous vein and the aorta. The innovative design of the PAS-Port system allows the surgeon to load the bypass graft and rapidly complete the anastomosis, typically in approximately two minutes, with little or no injury to the bypass graft vessel or the aorta. An important advantage of the PAS-Port system is that, in contrast to conventional hand-sewn proximal anastomoses, the vascular connections created can be performed without clamping the aorta, potentially avoiding the associated risks such as stokes and neurological complications. The PAS-Port system is approved for sale and marketed in Europe and Japan. Cardica is currently conducting a multi-center, international clinical trial of the PAS-Port system under an Investigational Device Exemption in the U.S.
About Cardica, Inc.
Cardica designs and manufactures automated anastomosis systems for coronary artery bypass graft (CABG) surgery. By replacing hand-sewn sutures with easy-to-use automated systems, Cardica provides cardiovascular surgeons with rapid, reliable and consistently reproducible anastomoses, or connections of blood vessels, often considered the most critical aspect of the CABG procedure.
Cardica's C-Port(R) Distal Anastomosis Systems are marketed in Europe and the United States. The PAS-Port(R) Proximal Anastomosis System is marketed in Europe and Japan and is being evaluated in a pivotal trial in the United States and Europe. Cardica also is developing additional devices to facilitate vascular and other surgical procedures. Go to www.cardica.com for more information.
Forward Looking Statements
This press release contains "forward-looking" statements, including statements relating to the ongoing sales for the PAS-Port(R) Proximal Anastomosis System in Japan, growth potential for automated anastomosis systems and other matters. Any statements contained in this press release that are not historical facts may be deemed to be forward-looking statements. The words "believe," "plan," "expect," "estimate," "intend" and "will" or similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause Cardica's results to differ materially from those indicated by these forward-looking statements, including risks associated with the timing and success of the clinical trial using the PAS-Port(R) Proximal Anastomosis System, the degree of market acceptance for our products as well as other risks detailed from time to time in Cardica's SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended December 31, 2006. Cardica does not undertake any obligation to update forward-looking statements. You are encouraged to read the Company's reports filed with the U.S. Securities and Exchange Commission, available at www.sec.gov.