Palomar Shares Soar,Pare Back On Confusion About FDA Approval
NEW YORK (Dow Jones)--Shares of Palomar Medical Technologies Inc. (PMTI) leapt to a six-month high Tuesday but soon retreated to smaller gains after apparent confusion spread in the market about regulator approval for a cosmetic laser device.
The confusion started when the U.S. Food and Drug Administration's Web site showed that a page discussing the regulation of a powered laser surgical instrument had been updated Tuesday. That update, which was for an FDA classification of devices, was apparently taken by some to mean an approval for Palomar.
Internet chatter picked up on the wrong association, and the shares followed suit, leaping as much as 14% to $12.56.
An FDA spokesman said no information was changed on the page and that the timestamp showing the change was a result of ongoing work by the Web staff. A Palomar spokesperson said the company has had no approvals Tuesday and that the page linked on multiple Web sites had nothing to do with Palomar specifically.
Recently, the shares pared back much of that gain, up 4.3% to $11.51, though more than eight times the typical number of shares have traded. That volume of trading has also tapered off since the mid-morning spike.
Palomar's spokesperson also said the company had no news announcements Tuesday.
Some of the confusion may have stemmed from recent FDA approval that was given on a new product for the maker of laser cosmetic surgery devices.
Last month, Palomar began previewing the Artisan Aesthetic System, a skin-resurfacing and skin-rejuvenation laser technology. The company said in a release that Artisan represented "revolutionary advances in light-based aesthetic medicine that will delight practitioners and clients alike."
On March 29, the FDA gave its medical-device clearance to the system. Palomar had previously said it would begin shipments upon clearance.
Canaccord Adams analyst Anup Mehta said it appeared the market had jumped into a story that wasn't fully understood Tuesday, and said while the Artisan is a new product, it's not a game-changing device.
"Artisan was not a major technology. It's a new product for them and it will be exciting for them, but it is not a big deal," Mehta said. "There was absolutely nothing new [Tuesday]."
Still, Mehta did say the stock in general has potential, thanks to Palomar's cosmetic-laser products aimed at home-use for consumers, which would be the first to the market.
-By David Benoit, Dow Jones Newswires; 212-416-2458; firstname.lastname@example.org; (END) Dow Jones Newswires April 06, 2010 15:56 ET (19:56 GMT)
Agree- communication snafu.... nothing more. Best we can wish is that the management team saw what happened to their networth with the run-up and they get off their arse and capture more marketshare and build new products to compete in new spaces.
Funny how we have seen the price going up and have been expecting news. Something is in the works because that's the only thing that makes sense. Many people are watching and yesterday showed this. Hang tight! :)