While biotech companies are usually the biggest movers in the healthcare sector, there was one stock on the NASDAQ that more than doubled during Wednesday’s trading session that doesn’t have anything to do with pharmaceuticals. That company was ReWalk Robotics (NASDAQ: RWLK), which shot up 122%.
The story with ReWalk Robotics isn’t a great one for shareholders, unfortunately. Share prices have fallen by around 87 percent over the course of the year, while those who have held onto the stock for three years saw over 98 percent of their value get destroyed.
However, the company staged a dramatic turnaround when the U.S. Food and Drug Administration gave the go-ahead for the company to sell its soft exo-suit system to rehabilitation centers across the country.
“The exo-suit achieves our commercial goal to offer a functional and affordable system that can be utilized in the ‘Main Street’ clinics in every community,” said ReWalk CEO Larry Jasinski in an official press release. “With a launch price of $28,900 as well as leasing options, ReStore offers cutting edge innovation with features that redefine therapy at a price that is accessible for a broader range of clinics than existing robotic technologies. The current gait training reimbursement codes enable immediate penetration and sales growth as part of our pathway to become a break even and profitable company.”
At the moment, Rewalk is the only company that offers such a system with FDA clearance and is meant to be used for stroke survivors struggling with mobility issues. Around 17 million people worldwide suffer a stroke each year, with as much as 80 percent of them suffering from some type of mobility impairment in the process.
The proprietary exo-suit was first developed at Harvard University’s Wyss Institute for Biologically Inspired Engineering, as well as undergoing clinical testing there that showed stroke victims could walk better using the technology.
Even with this much-needed development, it’s hard for analysts to recommend Rewalk as anything more than a speculative investment at the moment.
While revenues are expected to shoot up thanks to FDA approval, it’s not certain whether this will be enough to make up for a terrible past few years. Regardless, Rewalk does have the advantage of being the only FDA approved company of its type, meaning that it won’t have to worry about other competitors for some time.
Rewalk Robotics Company Profile
ReWalk Robotics Ltd is an Israel based medical device company. It is engaged in designing, developing and commercializing the Rewalk systems which are exoskeletons allowing wheelchair-bound individuals to stand and walk once again.
The ReWalk systems allow the users to sit, stand, walk, turn and have the ability to climb and descend stairs. It offers two systems, ReWalk Personal which is designed for every day and all day use by individuals at home and in their communities and is custom-fit for each user; and ReWalk Rehabilitation which is designed for the clinical rehabilitation environment where it provides the user with valuable training exercise and therapy. The company generates maximum revenue from the United States. – Warrior Trading News