Kips Bay Medical, Inc. (OTCMKTS:KIPS) is suffering from a setback in its phase-1 clinical feasibility trials for eMESH I. As per the announcement, the early angiographic results reflected poorly on the implants and the company would be winding down operations. Initially, there were 50-patients enrolled in the trial, who were treated with the new surgical technique. This number was later increased to 106, with at least 50-patients being implanted with the eSVS.
The eMESH was to be used in coronary artery bypass, for external SVG support. The test results were to demonstrate the safety and initial performance of the device to the FDA. Had the results been encouraging, the company was looking forward to an Investigational Device Exemption (IDE). Unfortunately, 26 of the 50 implanted patients had poor angiographic results for the first 6-months. The failure was also accompanied by some bad news for the investors. The board of directors, in light of the company’s current cash position and after review of strategic alternatives, has approved the liquidation and dissolution of the company.
The directors find it best if the company was dissolved and the remaining cash was returned to the stockholders. Kips had filed its 1Q2015 last month and the company had reported a decrease in year-over-year sales and gross profits. Additionally, the company had been conserving cash by reducing positions and reducing the costs of operations. At the end of its 1Q2015, Kips had $2.5 million in cash, $3.5 million in assets, $416,000 in liabilities, just $8,000 in revenues and a quarterly net loss of $844,000. Considering how quickly the company was heading south, it seems to be a favorable decision for the investors to dissolve the company. The recent setback is the most major blow Kips has had to suffer, had the product gone through, it would have revolutionized the medical industry.
Kips Bay Medical, Inc. (OTCMKTS:KIPS) traded a total of 2.38 million shares during the June 29 session to report a decline of 18.18% in its share value and close at a stock price of $0.027.