March 27, 2015
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
Redwood City, Calif.-based medical device maker Cardica, Inc. said this week that it will lay off 24 percent of its workforce, cutting 15 workers across all departments except research and development as it attempts to conserve cash and launch its MicroCutter Xchange 30 surgical stapler.
As part of the announcement, Cardica said Vice President of Manufacturing & Operations Frederick will retire on May 15.
“Cardica is engaging in the restructuring to conserve cash, in order to use its capital in the most efficient way and to more appropriately match its use of cash with its stage of development,” the company said in a statement.
The company came under intense pressure from investors in November 2014 when it decided to delay the launch of the MicroCutter Xchange 30, a move which pushed its share price down 22 percent. It said it made the decision after a “controlled commercial launch” of 200 of the devices brought back feedback that the product needed improvement. Around 100 units remain in use in the field in their current iteration.
The new move of revamping the device will cost it around $200,000, said the firm, and could take up to six months.
“Cardica’s decision to engage in the corporate restructuring and layoff resulted from necessary improvements required for the MicroCutter XCHANGE 30 blue cartridge, which are expected to take approximately four to six months to complete, as well as the pursuit of a 510(k) clearance to gain a vascular application use in the United States,” said the statement.
BioSpace Temperature Poll
U.K.-based GlaxoSmithKline filed a WARN letter in late February with the state of Pennsylvania indicating another 150 people would be laid off in its commercial and research and development group near Philadelphia. BioSpace wants to know if you think Pharm Country will do what it takes to keep biotech jobs in the area?
