Ra Medical (NYSEMKT:RMED) stock is rocketing higher on Tuesday after the medical device company got an update from the U.S. Food and Drug Administration (FDA).
The big news here is the FDA giving clearance to the company’s DABRA 2.0 catheter as part of the DABRA Excimer Laser System. This new catheter has a braided overjacket designed to improve “deliverability and kink resistance when navigating tortuous anatomy.”
While this is welcome news for Ra Medical, the company is currently looking over strategic alternatives. This has already seen it cut its workforce by 68% as the board of directors works to maximize shareholder profits.
Will McGuire, CEO of Ra Medical, said this about the FDA news.
“While we are pleased to receive this regulatory clearance, it comes as our Board continues its evaluation of strategic alternatives to optimize our Company’s path forward in the current challenging economic environment. As we have previously announced, the DABRA 2.0 catheter represents an interim step in our work to develop a guidewire-compatible version of the DABRA catheter, and at this time we have no plans to commercialize the DABRA 2.0.”
Even so, the FDA clearance has shares of RMED stock seeing heavy trading today. As of this writing, roughly 80 million shares of the stock have changed hands. That’s a massive jump from its daily average trading volume of about 1.3 million shares.
RMED stock is up 66.6% as of Tuesday morning. However, the stock is still down 68.9% since the start of the year.
Investors on the lookout for more recent stock market news are in luck!
InvestorPlace has them covered with all of the latest stock market news they need to know about! For Tuesday, that includes what’s happening with shares of Newmont (NYSE:NEM), Exxon Mobil (NYSE:XOM) and airline stocks. You can find out more on these matters at the following links!
More Tuesday Stock Market News
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- Airline Stocks UAL, AAL, DAL Slip After Record Travel Weekend
On the date of publication, William White 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.