On February 28, Ra Medical Systems Inc. (RMED) announced to have filed a 510(k) application for its DABRA Catheter with the FDA. Consequently, the stock added 17.02% in the following market session on March 01. The gain called for-profit booking and corrections in the after-hours on Tuesday.
The news resulted in investors flocking towards the stock on Tuesday as its volume reached 85.47 million. During the regular session, RMED stock was able to add a value of $0.07 or 17.02%. The stock closed the session at a price of $0.50 per share. Subsequently, the stock fell under corrections in the after-hours to lose 4.96%. Hence, the stock was trading at a value of $0.48 per share in the after-hours on Tuesday.
The dermatologic and cardiovascular diseases excimer lasers developer, Ra Medical Systems Inc. was founded in 2002. The company has a market capitalization of $11.24 million with 26.33 million shares outstanding.
RMED stock Analysis
While Tuesday’s regular session gains were enough to call for profit booking, the stock had been in an uptrend for the past few days. Thus, RMED stock was bound to fall under corrections with the extended gains on Tuesday. Therefore, the stock succumbed to corrections in the after-hours as it had added 40.00% in the past five days.
The uptrend of the stock before the news seemed to have been due to the recent downfall of the stock. With the apparent crash of the stock market due to the Russia-Ukraine conflict, RMED also declined to its new low on February 24. Following this, the stock rebounded as investors started buying the stock due to the low price.
510(k) Application Filing
As per Monday’s announcement, RMED submitted the 510(k) for its DABRA catheter with a braided over jacket and six-month shelf life. The application was filed for the catheter as a device for crossing chronic total occlusions in symptomatic infrainguinal lower extremity vascular disease patients. It also includes an intended use for ablating a channel in occlusive peripheral vascular disease.
This marks a significant step achievement in the company’s flagship commercial DABRA catheter.
The company manufactures the DABRA excimer laser and catheters in an ISO 13485 vertically integrated facility.
RMED’s Financial Summary
In Q3 2021, the company reported net revenue of $5000 from continuing operations and $0.5 million from discontinued operations.
Furthermore, RMED had $7.4 million in loss from continued operations and $0.4 million from discontinued operations in the quarter.
