Spectranetics shares rise on analyst upgrade
Spectranetics shares rise as analyst upgrades to 'Buy', says FDA investigation could end soon
On 10:57 am EDT, Monday October 26, 2009
Buzz up! Print.Companies:The Spectranetics Corporation
NEW YORK (AP) -- Shares of Spectranetics Corp. rose Monday after a Stifel Nicolaus analyst upgraded the medical device maker to "Buy" from "Hold," saying he believes an ongoing investigation into the company's business practices could close soon, boosting the stock.
Related Quotes
Symbol Price Change
SPNC 6.34 +0.27
{"s" : "spnc","k" : "c10,l10,p20,t10","o" : "","j" : ""} The stock added 29 cents, or 4.8 percent, to $6.36 in morning trading. Shares have traded between $1.91 and $6.89 over the last 52 weeks.
Analyst Thomas Kouchoukos said he recently met with Spectranetics management. "We came away more optimistic with respect to the company's efforts to resolve the ongoing FDA investigation, and note that management appears increasingly confident that it can resolve this issue prior to the end of this year," he said.
In September 2008, the FDA and U.S. Immigration and Customs Enforcement jointly served the company a search warrant. It sought information concerning the promotion, use, testing, marketing and sales of a certain product and payments made to medical personnel. The warrant also sought details of catheter guidewires and balloon catheters made by foreign parties, two post-market studies and compensation packages for certain personnel whom the company didn't identify.
Spectranetics stock has already rebounded from a sharp drop last year and will likely see more of a boost when the investigation is resolved, Kouchoukos added.
"Although it remains difficult to predict the timing of this event, recent conversations with management leave us increasingly confident that this matter can be resolved by year-end," he said.
After the investigation is resolved, he said, investors will likely focus on improvements in the company's business, which includes vascular intervention products and disposable medical products.
Spectranetics is headquartered in Colorado Springs, Colo.
