Manny Villafaña, Chairman and Chief Executive Officer of Kips Bay Medical, Inc. (NASDAQ: KIPS) offers a welcome to our new shareholders of Kips Bay Medical, Inc. The Company completed its initial public offering on February 16, 2011, closing on the sale of 2,062,500 shares and resulting in net proceeds of $13.6 million.
“We wish to welcome our new shareholders,” said Mr. Villafaña. “We are excited about the completion of this offering which gives us funds to continue our work in the development of our eSVS Mesh® for use in coronary artery bypass grafting, or CABG, surgery.”
CABG is the most commonly performed cardiac surgery. The American Heart Association estimates that 448,000 surgeries were performed in the United States in 2006. In addition, the Millennium Research Group, an independent market research firm, estimates that there will be 165,000 CABG procedures in Europe per year by 2013.In CABG procedures, surgeons harvest blood vessels, including the internal mammary artery, which supplies blood to the anterior chest wall, and the saphenous vein from the leg, and attach the harvested vessels to bypass, or provide blood flow around, blocked coronary arteries. The effectiveness of the procedure, however, is often limited by the failure rate of saphenous vein grafts. Various studies have shown this failure rate to range from 6% to 20% one year after surgery and up to 60% ten years after surgery. Failure of these grafts, typically evidenced by partial or complete blockage and reduced or stopped blood flow, can lead to the need for further coronary interventions up to and including additional CABG procedures. We believe the use of our eSVS MESH with saphenous vein grafts in CABG surgery could improve the long-term outcome of CABG procedures, including improved openness, or patency, and improved blood flow through the saphenous vein graft, potentially resulting in a reduced need for costly and often complicated reoperations or revascularization procedures.