Outset Medical Stock Is Soaring: Here's Why Even Bigger Gains Could Be Ahead
Medical device companies can't market or ship their products unless the U.S. Food and Drug Administration (FDA) says they can. So when Outset Medical (NASDAQ: OM) suspended shipments of its Tablo hemodialysis system for home use in June pending FDA clearance, it was a big blow.
The healthcare stock plunged 34% in the immediate aftermath of the news. Outset's shares were already down more than 50% year to date with the company reporting disappointing first-quarter results and the S&P 500 briefly entering bear market territory. But investors reacted especially negatively to the shipment hold for the home market.
That hold, though, is no longer a problem. On Monday, Outset announced that the FDA had cleared Tablo for home use.The stock soared 27% on Monday with the FDA's decision. But here's why even bigger gains could be ahead.
Source Fool.com
