Transenterix Inc (NYSEAMERICAN: TRXC) is having a great start to the trading session this morning, and for good reason. The company announced that the FDA has provided clearance for expanded indications surrounding a key product. Of course, the news led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about:
- The FDA clearance;
- what we’re seeing from the stock as a result; and
- what we’ll be watching for with regard to TRXC ahead.
TRXC Heads Up On FDA Clearance
As mentioned above, TransEnterix is having an incredibly strong start to the trading session this morning after the company announced news surrounding the FDA. In a press release issued early this morning, the company announced that it has received 510(k) clearance from the FDA surrounding expanded indications for the Senhance Surgical System.
In the release, TRXC announced that it has received clearance surrounding laparoscopic inguinal hernia and laparoscopic cholecystectomy surgery. Currently, it is estimated that there are 760,000 inguinal hernia and 1.2 million laparoscopic cholecystectomy procedures that are performed each year in the United States. As a result of the additional clearance, the company can now target more than three million procedures per year in the United States. In a statement, Todd M. Pope, President and CEO at TRXC, had the following to offer:
This indication expansion immediately doubles the addressable market for Senhance in the US and validates our regulatory strategy to successfully add to our indications for use… These expanded procedures are commonly performed at over 95% of hospitals in the United States. We believe this indication expansion will significantly increase the applicability of Senhance to more institutions, particularly those with a busy general surgery practice.
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 it’s important to keep a close eye on the news. After all, the news moves the market. In the case of TransEnterix, the news that was released today proved to be overwhelmingly positive. With more than 3 million addressable procedures in the United States, the company is likely to see expanded revenue, which is leading to excitement among investors. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:26), TRXC is trading at $3.82 per share after a gain of $0.69 per share (22.04%) 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 TRXC. In particular, we’re interested in following the story surrounding the company’s growth following the news of the approval of the new indications. After all, this could lead to strong revenue ahead. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!