Maddtk Company Electrocore (NASDAQ:ECOR) is likely to celebrate today after a big announcement that sent its stock price up. What happened? The U.S. Food and Drug Administration has granted its innovative designation gammaCore nVNS. And boy, did the investors note. ECOR stock closed 64% higher.
So what else do you want to know?
Essentially, ElectroCore wants patients to be able to use this device themselves to treat post-traumatic stress disorder (PTSD). In trials, it has so far been shown that it can reduce symptoms by 31%. And that’s a huge problem, because nearly 15 million adults in the United States live with PTSD.
gammaCore nVNS has distinguished itself in many ways from its competition, and its results speak for themselves. From a layman’s perspective, nVNS works by blocking inflammatory responses to painful memories, which significantly reduces PTSD symptoms. Preventing this inflammation can in turn prevent cluster headaches or migraines.
Dr. C. spoke. Douglas Bremner on its novelty and efficacy.
“GammaCore represents a new class of treatment separate from medication or psychotherapy that is safe, relatively free of side effects, and does not involve invasive and expensive implant procedures, such as previous VNS devices approved by the U.S. Food and Drug Administration for the treatment of resistant depression.”
ECOR shares soared after it inspired an FDA rating
The super designation of the device is a big plus for the company, as it significantly speeds up the time to market. In addition, the label in many ways confirms the legitimacy of the technology.
“The Breakthrough Devices Program is a voluntary program for certain medical devices and device-led combination products that provide the most effective treatment or diagnosis of diseases or conditions that are life-threatening or irreversibly debilitating. The goal of the Breakthrough Devices Program is to provide patients and healthcare providers with real-time access appropriately to these medical devices by accelerating their development, evaluation, and review, while maintaining legal standards for prior market approval, and 510(k) clearance.”
A number of conditions must be met to obtain the prestigious mark. The achievement is clearly not something to sneeze at, something that investors have already taken note of.
Today’s leap is somewhat coming for ECOR investors. Since it went public in 2018, ElectroCore has been relatively quiet in a few years. The stock has gradually fallen from the initial price range of $16 to the current level of 85 cents. But given its current target price, it could be set for a bounce.
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At the date of publication, Shrey Dua did not (directly or indirectly) hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.