Shares of Abiomed surged to an all-time high Wednesday after a strong third-quarter results and marketing approval for a new heart device.
The Food and Drug Administration granted a humanitarian device exemption for Abiomed's Impella RP, meaning it can be put into use without typical delays. Humanitarian device exemptions are granted to devices that treat rare diseases when there aren't any similar products on the market.
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Impella RP is designed to improve circulation in patients who have acute heart failure or other problems affecting the right side of the heart. The device is threaded to the heart through a catheter inserted in the leg, and it works for up to two weeks.
It also topped Wall Street expectations for both profit and revenue in the third quarter. Abiomed Inc., based in Danvers, Massachusetts, raised its revenue forecast by about $14 million after the market closed Tuesday and is now expecting $223 million to $226 million in revenue for the fiscal year ending March 31. That means the company is projecting at least $60 million in fourth-quarter revenue. FactSet says analysts were projecting $57.1 million.
The company expects $260 million to $270 million in revenue for the next fiscal year, and analysts expected $248.6 million on
Shares climbed almost 32 percent, or $12.21, to $50.84 in afternoon trading. Shares peaked at $53.89.