Share price of surgical instrument maker Stereotaxis soars on news of global partnership with health care giant
The price of shares in the St. Louis based company soared on Friday after it was announced that they had partnered with a large healthcare company.
Stereotaxis, a St. Louis-based maker of surgical instruments (NYSE:STXS), saw its share price rise significantly on Friday after news that the company had signed a partnership agreement with Abbott Laboratories.
Stereotaxis shares were trading at $2.32 a share in midday Friday's trading, up 37% from the closing price on Thursday of $1.69 a share. Stereotaxis announced in a press release earlier Friday that the company has entered into a global collaboration with Chicago-based Abbott.
Stereotaxis has its headquarters in the Globe Building downtown. It develops robotic technology for treating arrhythmias, and performing endovascular procedures. Abbot develops and markets a variety of health care products. Its fiscal 2022 revenues are $43.7 billion.
Stereotaxis and Abbott have partnered to combine Abbott's EnSite X EP heart mapping technology with Stereotaxis' magnetic robotic navigation system for use in cardiac procedures. The financial terms of the partnership have not been disclosed. Stereotaxis stated that combining the two technologies systems would improve heart procedures, and bring together technologies which offer "real time diagnostic information" with the precision and stability of robots.
David Fischel is the chairman and CEO at Stereotaxis. He said, "This collaboration reinforces our commitment towards meaningful innovations that further advance the frontiers in medical progress." It provides more choice to the robotic community and allows patients, doctors and providers to benefit from the best diagnostic and therapeutic technologies.
Stereotaxis announced in a press release that the integration of both technologies was complete after testing showed that the products were compatible. Stereotaxis announced that the integrated technology is approved for use in Europe. Further regulatory approvals are expected to follow in the near future.
Stereotaxis reported earlier this month that it had revenues of $6.5 millions for the quarter ending March 31. This is down from $7.6 million the previous year. The company reported a net loss in excess of $4.1 million for the same period last year. The company expects a double-digit growth in revenue for the entire year, 'driven primarily by revenue recognition from system backlogs and new orders'