Endologix Sinks on Temporary Shipping Hold

Health and Healthcare

Published: December 27, 2016 11:35 am

Last Updated: January 12, 2020 4:24 pm

Although the week between Christmas and New Year’s is not a heavily traded one, one company is making a case for it with a double-digit move on Tuesday. Endologix Inc. (NASDAQ: ELGX) saw its shares drop after the company announced a temporary hold on the shipments of its abdominal aortic aneurysms (AAA) treatment.

Specifically, the company is suspending its shipments of its AFX Endovascular AAA System for an investigation into a manufacturing issue with some sizes of the device. The company expects the temporary hold to be lifted for some sizes in the near future.

Excluding Tuesday’s move, Endologix had underperformed the broad markets, with the stock down nearly 30% year to date.

John McDermott, CEO of Endologix, commented:

The temporary hold on AFX is not related to any reported events from physicians and we continue to see very good commercial clinical results with the latest versions of AFX and AFX2. The manufacturing issue was identified through our on-going product testing and we are proactively implementing the hold to ensure we always provide the safest possible products for patients. We believe we will be able to lift the hold on some sizes in the near future, with the timing for the remaining sizes dependent on the outcome of our investigation. In addition, the AFX manufacturing issue is unrelated to the manufacturing process for Nellix and Ovation, which continue to be available in approved markets.

Shares of Endologix were last trading down almost 18% at $5.91, with a consensus analyst price target of $9.60 and a 52-week trading range of $5.76 to $14.50.

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