Endologix, Inc. (NASDAQ: ELGX)
Endologix, Inc. (ELGX), a global company that markets medical devices for the treatment of abdominal aortic aneurysms yesterday announced that the company met with the FDA about its Nellix Endovascular Aneurysm Sealing System.
The company announced it will seek US approval of Nellix, as it’s already being sold in Europe and other international markets. Endologix will work with the FDA and expects to get patent approval by the fourth quarter and PMA approval by 2020.
Endologix, Inc. CEO’s Comments
John McDermott, Chief Executive Officer of Endologix, Inc., commented, “While the timeline has shifted from our projections, we appreciate the FDA’s collaboration as Nellix® EVAS proceeds in the regulatory process. We have evidence that our previously updated Nellix® IFU provides excellent patient outcomes and look forward to starting the confirmatory clinical study with our Gen2 device. We appreciate the support of our physicians worldwide and their continued collaboration in developing new technologies and conducting clinical studies to provide the best outcomes for patients with abdominal aortic aneurysms.” Business Wire
ELGX Technical Analysis
ELGX opened trading yesterday at $6.69 which was down from the previous day’s trading close of $6.80. Shares closed trading yesterday at $6.73 and spiked down after the market closed to $5.50, equivalent to a 18% decrease from the closing price. Taking a look at the daily chart we can see the last time ELGX traded below these levels we have to go back to December 28th, 2016 when it traded at highs of $5.33, which is the price I like to trade for penny stocks.
Taking a closer look at the daily chart we can see that before the spike down ELGX had already been in an overall downward trend dating back to October 10th, 2016 when it traded at $13.21. ELGX has a float of 69.06 million shares and traded below the normal daily trading volume on Wednesday.
For day trading purposes, I would like to see ELGX open trading on Thursday below $5.90 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.15 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. It offers minimally-invasive endovascular repair (EVAR) products, including AFX (Anatomical Fixation) endovascular AAA system, which is a minimally invasive delivery system; VELA Proximal Endograft, which is designed for the treatment of proximal aortic neck anatomies with AFX; and the ovation abdominal stent graft system.
The company also provides endovascular sealing (EVAS) product that is based on the Nellix EVAS system to seal the aneurysm, and provides blood flow to the legs through two blood lumens. In addition, it offers proximal aortic extensions and limb extensions, which attach to the main body of its EVAR device, allowing physicians to customize it to fit the patients anatomy; and accessories to facilitate the optimal delivery of its EVAR products, including compatible guidewires, inflation devices, and snares.
The company offers its EVAR products under Powerlink System, IntuiTrak, AFX, VELA Proximal Endograft brand names; and EVAS products under the Nellix EVAS system brand name. It sells its products through direct sales force, network of agents, and independent distributors or agents. The company was formerly known as Radiance Medical Systems, Inc. and changed its name to Endologix, Inc. in May 2002. Endologix, Inc. was founded in 1992 and is headquartered in Irvine, California. Yahoo Finance