Compumedics Share Price Up Big on FDA Approval (ASX: CMP)
At time of writing, the share price of Compumedics Ltd [ASX:CMP] is up a significant 25.47%, trading at 87 cents.
It’s been a remarkable 12 months for the stock, with the Compumedics share price rising a total of 154% during this period:
We look at what triggered this move, which involves an important FDA clearance for Compumedics’ product.
Share price up on important FDA clearance
The market greeted the announcement today by pushing the Compumedics share price higher from the start of trading.
It’s an important step for the company as it allows for their Magnetoencephalography (MEG) device to be used in a routine clinical setting. This is mainly to be used for epilepsy and pre-surgical brain function mapping.
The company hopes now that their MEG product will grow to be as widely used as MRIs.
There are 36,000 MRIs installed globally, Compumedics notes.
The machines come in at a price point of between US$3 million and US$4 million.
So if the company is right — you can see that there is a potentially massive addressable market there.
Which goes a long way to explaining what happened to Compumedics’ share price today.
You can see what the product looks like below:
Around 1.2% or 3.4 million people have epilepsy in the US.
In the short term, with such a sharp share price rise, it is conceivable Compumedics may pull back somewhat over the coming days, with investors taking profits after a strong 12-month period.
That being said, the medtech space continues to excite with other big-name winners including companies like PolyNovo Ltd [ASX:PNV].
If this field excites you, be sure to read our free report which picks out three small-caps that could take off this year. One of the picks merges AI with medical imaging — something particularly relevant considering today’s Compumedics announcement.
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