Endologix shares slide 24% as medical-device maker halts shipments of top product

Shares of Endologix Inc. slipped 24% Tuesday as analysts weighed in on the information that the corporate used to be inserting a temporary shipping grasp on one in every of its greatest-selling devices as a result of manufacturing considerations.

The stock fell to its lowest stage on the grounds that October 2010 on the information in regards to the company’s AFX Endovascular AAA device, which treats stomach aortic aneurysms and used to be first authorized by means of the food and Drug Administration in 2011. The device money owed for about sixty three% of the ELGX, -23.ninety nine%  estimated sales for 2016, in keeping with analysts at Leerink.

The information “is any other piece of disappointing information from ELGX,” they wrote in a be aware, citing the recent CE Mark suspension for AFX in Europe and delays in approval of its Nellix device.

the corporate mentioned that the difficulty was once found out throughout product testing, when it identified damage to the graft material in sure sizes of the device. It emphasized that it does now not relate to Nellix or its Ovation aortic therapy. The dangle may be lifted within the near future, Chief government John McDermott told analysts on a convention name.

“At this level, it’s too early to predict the impact that this will likely have on the company,” he said. “however we felt it was once important to share the guidelines quickly whereas we work diligently to complete the investigation, put in force corrective movements and release the dangle.”

the corporate is planning every other update with the aid of the tip of the week. Leerink rates the inventory market perform.

Endologix shares have dropped forty five% in 2016, compared with an 11%% upward push within the S&P 500 SPX, +zero.31%  .

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