Soliton Inc (NASDAQ: SOLY) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced an FDA approval yesterday followed by a trial initiation today. Below, we’ll talk about:
- The recent news;
- what we’re seeing from SOLY stock as a result; and
- what we’ll be watching for ahead.
Here’s Why SOLY Is Flying
As mentioned above, Soliton is having a great day in the market today after a couple of big bits of news have been released. Here’s what’s happening:
First and foremost, yesterday, SOLY announced that the FDA has issued clearance that will allow it to bring its Rapid Acoustic Pulse device to market. The device is indicated as an accessory to the 1064 nm Q-Switched laser for black ink tattoo removal on the arms, legs and torso in Fitzpatrick Skin Type I-III individuals.
Nonetheless, this isn’t the only news exciting investors. In fact, the company issued yet another release early this morning, announcing that it has decided to move forward with a new pivotal trial.
The new trial will assess the company’s cellulite treatment. The study will assess the company’s treatment across between 45 and 60 patients. This is great news as cellulite affects up to 90% of women and is a market that generates more than a billion dollars per year.
In a statement, Walter Klem, Co-founder and Executive Chairman at SOLY, had the following to offer:
The market for non-invasive cellulite treatments is about $1 billion in the U.S., so it is clear that many women who are affected by the condition are interested in finding ways to reduce or eliminate it.
The very encouraging results of the POC Trial are driving our decision to launch the pivotal trial as quickly as possible and suggest we may be able to significantly improve the appearance of cellulite with a single completely non-invasive procedure. The procedure requires no recovery time and avoids the risks that go with even minimally invasive surgery.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Soliton, recent news proved to be overwhelmingly positive.
Not only does the company have a new product on the market that will likely generate significant revenue growth, a pivotal trial is beginning that may open the door to yet another stream of revenue. So, it’s not surprising to see that excited investors are pushing the stock for the top.
As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:05), SOLY is trading at $23.22 per share after a gain of $9.09 per share or 63.91% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SOLY. In particular, we’re interested in following the story surrounding the company’s continued work to bring its tatoo removal product into the commercialization stage as well as its cellulite product to market. Nonetheless, we’ll be following the story closely and bringing the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!