Kips Bay Medical Slashes Staff and Salaries to Save Money While Finishing Trial

Cash-strapped Kips Bay Medical said Monday it is implementing drastic money-saving tactics to keep the company afloat through the end of 2015. At stake is a feasibility trial of the eSVS Mesh product, which Kips Bay hopes to complete.

To that end, Minneapolis, Minn., devicemaker has cut two sales directors, two administrative positions and one operations position — reducing total personnel from 13 to eight. The company’s chief officers have also agreed to temporary salary reductions, Kips Bay said.

The combined measures will reduce monthly operating expenses to $200,000, excluding costs related to the trial, the company said. Enrollment in the eMESH I study is nearing completion, with two to seven patients still needing to be added to the current 99.

The sleeve-like eSVS Mesh is intended to strengthen saphenous vein grafts used in coronary artery bypass graft surgery. Data from the eMESH I trial will serve as the basis for a request to perform a larger pivotal study in the U.S., Kips Bay said. The company hopes to have the trial and any follow-up studies completed by October. — Kellen Owings