Kips Bay Medical Inc. stock has ceased trading after a vote by shareholders this week to wind down operations because of disappointing results from testing of its sole medical device.
The Plymouth med-tech company had been trying to get U.S. sales approval for a device called the eSVS mesh, which was used to strengthen saphenous vein grafts during coronary bypass surgery.
Early results from a clinical trial to support the Food and Drug Administration application found that patients with the device experienced worse outcomes than those who didn’t have it, prompting the decision to wind down the cash-strapped company rather than continue the research. Kips Bay also surrendered its approval to sell the device in Europe.
Board members at Kips Bay in June approved the plan shareholders voted to accept this week. Although the company had $2 million in cash as of June, that amount was said to be enough to cover outstanding liabilities. It was not clear whether the holders of Kips Bay’s 30 million publicly traded shares would receive a cash distribution following dissolution of the company.
The company was started by longtime medical technology entrepreneur Manny Villafaña, whose past credits include founding St. Jude Medical and Cardiac Pacemakers.