Medical device manufacturing company Medigus Limited (NASDAQ:MDGS) is the talk of the market on Friday morning as MDGS stock surged by as much as 50% following the announcement that it had bagged a substantial order in partnership with A. M. Surgical Inc. The company announced along with A. M. Surgical it has received an order for 1,400 units of its integrated visualization device.
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The deal is worth $650,000, and Medigus reiterated that the order is the first big order for this particular device. The device in question is apparently useful during endoscopic carpal tunnel release and gives a surgeon much greater control and visual help. More importantly, the device could be useful in thousands of surgeries and procedures that are undergone by patients every year.
Investors are enjoying the big news as MDGS stock is up a whopping 50% at $3.38 on hefty volume.
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In a nutshell, this is a significant development for the company not only because of the monetary value of the order but also because it could eventually turn into one of its more popular products. The Chief Executive Officer of Medigus Liron Carmel spoke about the technology that is used in this device and talked about the benefits of its deployment. He said, “We are confident that the integration of our micro ScoutCam™ technology with the Stratos could provide surgeons with a powerful device to help their patients live with less pain.”
Hence, it is a product that could offer the company long term potential and a product that could be eventually used by many healthcare institutions in the United States and in the rest of the world.
In addition to that, it would be interesting to see how the company’s trademarked ScoutCam technology helps it in the future as it has a range of products that uses the same technology and it is currently in the process of creating other products that use it. The company is also interested in producing integrated visualization products.
Despite today’s big jump, MDGS stock is still down 62% from its 52-week high of $9.42.
Featured image: DepositPhotos © AntonMatyukha
