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UPDATE 1-Cardica signs licensing deal with Intuitive Surgical
August 17, 2010 / 9:08 PM / 7 years ago

UPDATE 1-Cardica signs licensing deal with Intuitive Surgical

* Intuitive gets rights to co’s tissue cutting, stapling IP

* Intuitive pays Cardica $12 mln

* Cardica shares jump 46 pct in extended trade

Aug 17 (Reuters) - Cardica Inc CRDC.O said it sold the worldwide rights to its intellectual property related to tissue cutting, stapling and clip appliers to Intuitive Surgical Inc (ISRG.O) for use in robotics.

Shares of Redwood City, California-based Cardica were up 46 percent at $2.43 in after-hours trade.

Intuitive, which makes robotic surgical systems, paid Cardica $12 million for a royalty-bearing license and about 1.25 million Cardica common shares.

Cardica said under the license agreement, the two companies may also enter into future product development deals.

Separately, Cardica posted a slightly wider-than-expected loss for the fourth quarter as a smaller direct sales force led to a drop in product sales. Total revenue for the quarter was about $991,000, compared with $2.0 million a year ago. [ID:nASA00O2Y]

Development of the company’s device to close a hole in the heart was put on hold during the second quarter, and as a result no development revenue was recorded during the fourth quarter, the company said.

Cardica shares, which have risen 39 percent over the past 12 months, closed at $1.66 Tuesday on Nasdaq. Intuitive shares closed at $316.92. (Reporting by Esha Dey in Bangalore; Editing by Anne Pallivathuckal)

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