Camber Capital Management Reveals New Position in Cardica, Inc. (CRDC)

Stephen Dubois‘ Camber Capital Management revealed a new stake in Cardica, Inc. (NASDAQ:CRDC). According to a recent 13G filing, the fund now owns 8.37 million shares, almost 10.00% of the company’s common stock total.

Based in Redwood City, CA, Cardica, Inc. (NASDAQ:CRDC) is a designer and manufacturer of an endoscopic microcutter product line for cardiac and laparoscopic surgical procedures. The company’s technology enables minimally-invasive and robot-assisted surgeries and minimizes operating time. One of its main products, MicroCutter XCHANGE 30 is a cartridge-based surgical stapling device with a five millimeter shaft diameter designed for use in gastrointestinal procedures and appendectomies. A month ago, Cardica Cardica announced the completion of the first US procedure using its MicroCutter XCHANGE 30 stapling device. The company believes that its MicroCutter products may revolutionize the stapler market, being significantly smaller than the standard 12 millimeter staplers currently on the market. The microcutter manufacturer generated losses of more than $16.00 million or $ 0.42 per share in 2013, while this year it is expected to produce losses of $0.31 per share. On average, analysts suggest that investors buy the company’s stock, which currently trades at a price of slightly above $1.00 per share.

Kevin Kotler‘s Broadfin Capital owned 4.77 million shares of Cardica, Inc. (NASDAQ:CRDC), valued at $4.65 million, at the end of 2013. Prescott Group Capital Management, led by Phil Frohlich, is another large shareholder at Cardica, with 2.00 million shares worth almost $2.00 million.

Camber Capital Management’s $1.13 billion equity portfolio is almost entirely (95%) invested in the healthcare sector. With a position of 2.00 million shares worth $80.00 million, Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) represents the largest investment in the fund’s portfolio. A few months ago Camber Capital raised its holding in CONMED Corporation (NASDAQ:CNMD) by around 40% to 1.40 million shares.

Disclosure: none

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