FDA Warning Letter Sinks Intuitive Surgical Shares

by Christopher Freeburn | July 19, 2013 11:16 am

FDA Warning Letter Sinks Intuitive Surgical Shares

Intuitive Surgical 300x125 FDA Warning Letter Sinks Intuitive Surgical Shares [1]Shares of Intuitive Surgical (ISRG[2]) plunged more than 12% in Friday morning trading after federal regulators advised the company of problems noted during a second-quarter inspection[3] of its facilities.

Intuitive, which manufactures robotic surgical equipment, said that the U.S. Food and Drug Administration (FDA), which announced an investigation of the company in February, had requested that it correct the problems. The company said it would comply with the FDA’s requests, the Associated Press notes.

The company noted that sales of its da Vinci surgical system, which allows surgeons to perform surgery through small incisions with robotic arms and remote sensors, had dropped during second quarter. It expects slower sales for the remainder of the year.

For the quarter, Intuitive said it earned $159.1 million, up 3% compared to the same time last year. Sales climbed to $536.5 million, up 8%. The results were consistent with analysts’ already lowered forecasts.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/12/Intuitive-Surgical.jpg
  2. ISRG: http://studio-5.financialcontent.com/investplace/quote?Symbol=ISRG
  3. problems noted during a second-quarter inspection: http://www.businessweek.com/ap/2013-07-18/intuitive-surgical-slumps-after-fda-warning-letter

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