Medtech company electroCore (NASDAQ:ECOR) is likely celebrating today after a big announcement shot its stock price right up. What happened? The U.S. Food and Drug Administration granted its gammaCore nVNS breakthrough designation. And boy, have investors noticed. ECOR stock closed up 64%.
So what else do you need to know?
Essentially, electroCore wants patients to be able to use this device themselves to treat post-traumatic stress disorder (PTSD). In trials, it has so far demonstrated that it can reduce symptoms 31%. And this is a big deal, because approximately 15 million adults in the U.S. live with PTSD.
gammaCore nVNS has distinguished itself in several ways from its competition, and its results speak for themselves. In layman’s terms, nVNS works by blocking the inflammatory responses to traumatic memories, substantially reducing the symptoms of PTSD. Preventing this inflammation can in turn prevent cluster headaches or migraines.
Dr. J. Douglas Bremner spoke on its novelty and effectiveness.
“gammaCore represents a new class of treatment separate from medication or psychotherapy that is safe, relatively free of side effects, and does not involve costly and invasive procedures for implantation, like previous VNS devices approved by the FDA for treatment of refractory depression.”
ECOR Stock Soars After Inspiring FDA Designation
The breakthrough device designation is a major win for the company, as it substantially accelerates the time to market. Additionally, the label in many ways validates the technology’s legitimacy.
“The Breakthrough Devices Program is a voluntary program for certain medical devices and device-led combination products that provide for more effective treatment or diagnosis of life-threatening or irreversibly debilitating diseases or conditions. The goal of the Breakthrough Devices Program is to provide patients and health care providers with timely access to these medical devices by speeding up their development, assessment, and review, while preserving the statutory standards for premarket approval, 510(k) clearance.”
A number of conditions need to be met to receive the prestigious label. Clearly, the achievement is nothing to sneeze at, something investors have already noticed.
Today’s jump is something of a long time coming for ECOR investors. Since it went public in 2018, electroCore has had a relatively quiet few years. The stock has progressively fallen from its initial $16 price range down to its current 85 cents level. But given its current price targets, it could be set for a rebound.
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On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.