Cardica and Cook have previously entered into an agreement to develop a patent foramen ovales (PFO) closure device, whereby Cardica is responsible for the design, production and manufacturing, which is directed by a development committee with representatives from both companies.
Cook is responsible for preclinical and clinical development, as well as regulatory approval of the product, and, subject to regulatory approval will have exclusive worldwide commercialization rights to market the PFO closure device.
Cardica has received a total of $3.1 million to date under the agreement. Cardica also is eligible to receive additional payments, of up to $500,000 over the next year if specified milestones are met, as well as royalties on future worldwide sales, if any.
Bernard Hausen, president and CEO of Cardica, said: “We believe the PFO closure market provides a natural extension for our automated closure technology beyond cardiac bypass surgery and that our device addresses an under-served patient population. We look forward to initiating final preclinical testing of our device later this fiscal year.”