Alphatec Holdings Inc (NASDAQ: ATEC) is flying in the market this morning after announcing that it has received FDA clearance. Of course, the news means that the company may now sell its product in the United States, opening the door to revenue. Today, we’ll talk about:
- The FDA clearance;
- what we’re seeing from ATEC stock as a result; and
- what we’ll be watching for ahead.
ATEC Stock Climbs On FDA Clearance
As mentioned above, Alphatec is having a great day in the market today after announcing that it has received FDA clearance. In a press release issued early this morning, the company said that the United States FDA has cleared the automated SafeOp neuromonitoring system for use in real-time intraoperative nerve location and health assessment.
This is a crucial milestone for the company as it means that the company’s device can now be sold and used throughout the United States. In a statement, Pat Miles, Chairman and CEO at ATEC, had the following to offer:
I could not be more excited to integrate this revolutionary technology into our growing number of spine approaches. Many of us at ATEC were previously instrumental in developing, validating, and marketing a neuromonitoring platform that became foundational to a billion-dollar spine company. The SafeOp solution is better. It has no peer and it elevates the requirements for others to participate. Today, we have raised the bar in delivering objective actionable information that drives safer and more reproducible spine surgery.
Surgeons yearn for information to enable better surgery. SafeOp not only provides actionable intraoperative information regarding nerve location during access, but for the first time, it also allows surgeons to monitor patient nerve health, in real-time, during surgery. The development of this system demonstrates ATEC’s commitment to revolutionize how the world approaches spine surgery.
The above statement was followed up by Luiz Pimenta, MD, PhD, CMO At ATEC Here’s what he had to offer:
Neuromonitoring technology is critical for a safe and reproducible lateral surgery. The SafeOp system has not only improved the EMG capability to find nerves, but now surgeons will be able to monitor the health of nerves in the lumbar plexus throughout the entire procedure. This technology will provide more surgeons with the confidence to perform lateral surgeries and will improve patient care.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Alphatec Holdings, the news proved to be overwhelmingly positive.
After all, the clearance announced today opens the door to a potentially strong revenue opportunity. So, it’s not surprising to see that excited investors are reacting by pushing the stock up.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:16), ATEC is trading at $1.64 per share after a gain of $0.18 per share or 12.32% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ATEC. In particular, we’re interested in following the company’s work to bring its SafeOp system to market now that it has been legally cleared to do so. Nonetheless, we’ll continue to follow the story clsoely and bring the news to you as it breaks!
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