A Medical Device Daily

Cardica (Redwood City, California) yesterday reported receiving $1.25 million from Cook Medical (Bloomington, Indiana) for development and "high-volume" production tooling for the Cook Vascular Access Closure Device, an automated system for closing access openings in femoral arteries after interventional vascular procedures.

The device, also known as the X-Port device, is being developed by Cardica in partnership with Cook.

Brian Bates, senior VP of business development for Cook, said, "We are pleased with Cardica's development of the Cook Vascular Access Closure Device, and believe that with its unique features and streamlined design, this product has the potential to address the large and growing market need for next-generation vascular closure devices. We have initiated human feasibility studies with the goal of securing CE mark."

In December 2005, Cardica and Cook entered into an agreement to develop the X-Port device, with Cardica responsible for design and preclinical development, Cook responsible for clinical development and regulatory approval. With regulatory approval, Cook will have exclusive commercialization rights to market the X-Port.

Cardica said that, to date, it has received about $2.75 million in development milestones and payments for high volume production tooling under the collaboration, and it could receive $500,000 upon completing final product development milestones. It will receive royalties on any worldwide sales.

"Our partnership with Cook highlights the broad applicability and diverse market opportunities for our proprietary microchip technology, and we look forward to exploring additional uses for this innovative device," said Bernard Hausen, MD, PhD, Cardica president/CEO.

Cardica manufactures automated anastomosis systems for coronary artery bypass graft surgery to replace hand-sewn sutures connecting blood vessels.

Cardica's C-Port Distal Anastomosis Systems are marketed in Europe and the U.S. The PAS-Port Proximal Anastomosis System is marketed in Europe and Japan and is being evaluated in a pivotal trial in the U.S. and Europe.

Cook bills itself as the world's largest privately-held manufacturer of medical devices.

In other financing activity:

• Del Global Technologies (Franklin Park, Illinois) reported completing its rights offering launched on Feb. 7, selling 12,027,378 shares of its common stock, representing 100% of the shares offered, at the $1.05 a share through the exercise of both basic and over-subscription privileges.

Proceeds were $12,628,746.90. In total, about 68% of the rights, representing 8,137,123 shares of the company's common stock, were subscribed for as a result of the basic subscription privilege; the remaining 3,890,255 shares were sold to shareholders exercising their oversubscription privileges. The total shares of the company's common stock outstanding is now 24,054,756.

Del Global is primarily engaged in the manufacture of high performance diagnostic imaging systems for medical, dental and veterinary applications through the Del Medical Systems Group.

• Baxter International (Deerfield, Illinois) reported that it has authorized the repurchase of an additional $2 billion of the company's common stock to be executed upon completion of the existing share repurchase program. Baxter has about $800 million of remaining authorization under the $1.7 billion program as supplemented by its board in February 2006.

The company said it expects to complete the expanded program during the next three years.

"The quality of our ongoing cash flow generation and growth expectations, as well as the proceeds of our recent sale of the transfusion therapy business, give us confidence that we have the necessary capital to make appropriate investments in internal growth initiatives and selective acquisitions that enhance growth, while returning value to shareholders," said Robert Davis, corporate VP and CFO. He said more details would be provided today at an investor conference and at its May 1 annual meeting in Chicago.

Baxter, through its subsidiaries, provides technologies and systems in medical devices, pharmaceuticals and biotechnology.

• Laboratory Corporation of America Holdings (LabCorp; Burlington, North Carolina) reported that its board has authorized a new stock repurchase program to purchase up to an aggregate of $500 million of its common Stock .

The purpose of LabCorp's stock repurchase program is consistent with its goal of making investments of the company's cash resources that enhance shareholder value.

LabCorp develops diagnostic technologies and says that it is the first in its industry "to embrace" genomic testing.