Cardica receives $2 million in milestone payments from Cook

Cardica received the fourth and final milestone payment of $500,000 for the delivery of the Cook Vascular Closure Device (CVCD), an innovative automated system designed to close access openings in femoral arteries after interventional vascular procedures. Cook also paid $1.3 million to Cardica for the successful completion of the first phase of design and development of a specialized device designed to close holes in the heart known as patent foramen ovales (PFO), genetic heart defects. Cardica also received a payment of $180,000 from Cook for the initial purchase of parts to build a specific number of these vascular closure devices for commercial use.

Under the agreement for the CVCD, Cardica has received a total of $2 million in milestone payments and has expanded this collaboration to include a second product in the vascular closure device product line. Similarly, under the agreement for the PFO closure device, Cardica has received to date $2.15 million in fees and milestone payments and may receive an additional $1.4 million in development milestone payments. With both products, Cardica is also entitled to receive royalties on any future worldwide sales by Cook, and Cook has exclusive worldwide commercialization and marketing rights.

Brian Bates, senior vice president of business development for Cook, said: “We expect to introduce the CVCD in a limited number of sites in Europe early this year.”