XTENT, maker of an innovative stent that received the European CE Mark just two months ago, is closing its doors after failing to find a partner or buyer, a goal first announced in January.
The Company’s Board of Directors voted yesterday that “it is in the best interests of the Company and its stockholders to liquidate the Company’s assets and to dissolve the Company.” The plan is subject to stockholder approval.
The stock closed at $1.00, up since hitting a low of $.18 in January, but a fraction of the $16 it traded for when it went public two years ago. 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 — a concept that cardiologists have said has much merit.
One difficulty that interventional cardiologists face is choosing the proper length of 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 a healthy section of the artery, something which also increases the risk of blockage. With the XTENT, physicians can tailor 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.
In March, XTENT CEO Greg Casciaro expressed hopefulness to Angioplasty.Org that a strategic alliance would be formed, because “this technology is really a significant advance in care and will maximize the potential of the drug use.“
In its press release, the Company stated, “Although the Company’s Board of Directors has approved the Plan of Dissolution, it will continue to consider any reasonable alternative strategic proposals presented to the Company.”