Transenterix Inc (NYSEAMERICAN: TRXC) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has received regulatory approval in Japan, exciting investors and sending the stock up. Today, we’ll talk about:
- The regulatory approval;
- what we’re seeing from TRXC stock as a result; and
- what we’ll be watching for ahead.
TRXC Announces Regulatory Approval
As mentioned above, Transenterix is having a great start to the trading session this morning after announcing regulatory approval. The announcement came via press release early this morning.
In the release, TRXC said that it received regulatory approval in Japan for its Senhance Surgical System. The approval from the Japanese Ministry of Health, Labor and Welfare covers the use of the product in laparascopy for general surgery, gynecology, urology and certain thoracic procedures.
This is big news for the company. After all, Japan is the second-largest medical device market in the world. In fact, about $40 billion is spent annually on medical devices in the region, with more than $5 billion being related to capital equipment spending.
In a statement, Todd M. Pope, President and CEO at TRXC, had the following to offer:
Regulatory approval in Japan is a pivotal milestone for our company, as Japan is second only to the U.S. as the world’s largest surgical robotics market. Japan’s high penetration of laparoscopic surgery coupled with their rapid adoption of robotics and the intense focus on procedure cost creates a considerable market opportunity for Senhance.
The above statement was followed up by Professor Shigeki Yamaguchi, M.D., Ph.D., Chief of Colorectal Surgery at Saitama Medical University International Medical Center. Here’s what he had to say:
Approval of the Senhance Surgical System for use in laparoscopic procedures in Japan is a major achievement. As the first hospital in Japan to obtain and utilize the Senhance Surgical System to treat patients, I believe this technology allows surgeons to offer excellent minimally invasive procedures that add precision and visual control while leveraging a familiar laparoscopic approach with minimal additional costs to the health system.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that it’s important to keep an eye on the news. After all, it’s the news that leads to moves in the market. In the case of Transenterix, the news proved to be positive.
After all, the approval in the second largest medical device market in the world has the potential to open the door to a meaningful stream of revenue. So, it’s not surprising to see that excited investors are sending the stock on a run for the top.
As is almost always the case, our partenrs at Trade Ideas were the first to alert us to the gains. Currently (10:11), TRXC is trading at $1.48 per share after a gain of $0.22 per share or 17.46% 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 TRXC. In particular, we’re interested in following the story surrounding the company’s continued work to bring its Senhance Surgical System to hospitals in Japan and around the world. Nonetheless, we’ll keep a close eye on the story and bring 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!