Shares of Endologix Inc. tumbled 15% Tuesday, as analysts weighed in on the news that the company was placing a temporary shipping hold on its AFX device because of manufacturing issues. Analysts at Leerink said the AFX Endovascular AAA System, which treats abdominal aortic aneurysms and was first approved by the Food and Drug Administration in 2011, accounts for about 63% of the company’s estimated sales for 2016. The news “is another piece of disappointing news from ELGX,” analysts wrote in a note, citing the recent CE Mark suspension for AFX in Europe and delays in approval of its Nellix device. The company said that the issue was discovered during its product testing and doesn’t relate to Nellix or its Ovation aortic treatments. Endologix shares have dropped 27.4% year-to-date, compared with a 10.9% rise in the S&P 500 . Shares were priced at $7.19 as of Friday’s close.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News