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January 23, 2009 -- In an announcement today, Xtent Inc. (NASDAQ: XTNT) located in Menlo Park, California, stated that it is engaging the services of an investment bank to help the company pursue strategic alternatives, possible sale of some or all of the company's assets, or other type of acquisition. And of it 121 employees, all but nine have received termination notices, effective March 23. CEO and President, Gregory D. Casciaro, stated:
When Xtent went public in two years ago, its stock traded at over $16. Today Xtent closed at $.20, a mere 1% of its original value. However, the company's situation has much to do with the current economic landscape and shrinking of credit, and less to do with the company's main product: the customizable stent.
To gain U.S. approval, the company would need to run a large clinical trial, well beyond its current capabilities. However, with its current valuation at $5 million, Xtent might be a bargain for one of the larger device manufacturers (Abbott Vascular, for example, is a 15 minute drive from Xtent headquarters). Should such a scenario evolve, it is possible that the 119 employees would not be laid off. Stay tuned....
Reported by Burt Cohen, January 23, 2009 |
One difficulty the interventional cardiologists
face is choosing the proper length stent for a blockage. Too short
a stent doesn't completely cover the diseased area, a situation which
become high risk for increased cell growth around its edges and subsequent
restenosis (blockage). Likewise, if the stent is too long, metal
is being placed in too large a healthy section of the artery, something
which also increases the risk of blockage. With the Xtent, physicians
can tailor, on the spot, the length of the stent during the procedure.
The Xtent is a cobalt-chromium metal stent, covered with a biodegradable
coating which eludes Biolimus A9™, a drug which suppresses
excess cellular growth, licensed from Biosensors.