Cardica files $40 million IPO

By Ted A. Knutson

Washington, Nov. 4 - Cardica, Inc. filed for an estimated $40 million initial public offering of common stock.

A.G. Edwards and Allen & Co. LLC are the underwriters.

The company did not say how many shares it intends to sell nor did it set a price target.

Cardica has applied for the stock to be quoted on the Nasdaq National Market under the symbol "CRDC."

Proceeds will be used to continue development of the company's products, including funding clinical trials and research programs, to build sales and marketing capabilities and for working capital and other general corporate purposes.

Cardica, a Redwood City, Calif.-based firm, designs and manufactures proprietary automated anastomotic systems used by surgeons to perform coronary artery bypass surgery.

Its first two products, the C-Port Distal Anastomosis System and the PAS-Port Proximal Anastomosis System, provide cardiovascular surgeons with easy-to-use, automated systems to perform consistent, rapid and reliable connections, or anastomoses, of the vessels, which surgeons generally view as the most critical aspect of the coronary artery bypass grafting procedure.

The C-Port system received the European Union's CE Mark in April 2004 and is currently under review by the Food and Drug Administration, or FDA, for 510(k) clearance in the United States.

The PAS-Port system received the CE Mark in March 2003, regulatory approval in Japan in January 2004, and has received conditional approval of an Investigational Device Exemption from the FDA to conduct a prospective randomized clinical trial for 510(k) clearance in the United States.

According to the American Heart Association, 13 million Americans have coronary artery disease, and approximately 500,000 people in the United States die each year as a result of the disease.

For the year ended June 30, Cardica had revenues of $719,000 with a net loss of $10.95 million.

Guidant Investment Corp. is the largest shareholder with 3.44 million shares for a 19.1% pre-IPO stake. Sutter Hill Ventures is number two with 2.94 million shares for a 16.3% stake.

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