According to OTC Markets, Dextera Surgical (NASDAQ: DXTR) traded over 55 times its 30-day average daily trading volume on March 6, 2016. The stock returned just over 30% that day, and it’s been significantly outperforming its industry. That in mind, DXTR returned over 15% over the past week. Moreover, the stock was up 55.21% YTD, while the medical instruments and supplies industry was up just 11.93%.
Here’s a look at Dextera Surgical’s performance in 2017 thus far:
Dextera Surgical Product Could Shorten Hospital Stays
DXTR announced Dr. Marco Nardini of James Cook University Hospital in Middlesbrough, U.K. presented data on the results of patients undergoing Microlobectomy. This was great news for the company. The data on the results indicated the Microlobectomy procedure using DXTR’s product reduced hospital stays by at least two days, when compared to traditional procedures. Moreover, the data suggested over 20% of patients were able to go home the day after the procedure. Consequently, Dextra Surgical shares were up over 30% on the day, on heavy trading volume.
According to the study, the median length of hospital stays was only three days. The hospital discharged 17 patients the day after and 14 patients two days after the surgery, in the 82-patient study. Consequently, this could lead to immense cost savings for hospitals, if surgeons shift to the MicroCutter 5/80 surgical stapler.
According to Dr. Nardini, “The Microlobectomy procedure, enabled by the MicroCutter 5/80 surgical stapler, due to the slim profile of the five-millimeter diameter with 80 degrees of articulation, reduces postoperative pain and complications compared to traditional open procedures and overall, improves a patient’s recovery after a major lung resection.”
Dr. Nadini added, “These data further support what surgeons around the world are experiencing when performing the Microlobectomy – that the less invasive nature of this procedure shortens hospital stays when compared to a traditional open lobectomy, with 20.7% of patients able to return home within 24 hours.”
Dextera Surgical Vice President of Worldwide Sales and Marketing, Liam Burns, stated, “The interest in the presentation at the meeting reflects the global interest in technologies like the MicroCutter 5/80 that enable less invasive approaches to lobectomy that may accelerate the adoption of video-assisted thoracic surgery (VATS) techniques and other surgical procedures.”
Dextera Surgical Second Quarter 2017 Results
On Feb. 7, 2017, Dextera Surgical announced its second quarter 2017 results. The company reported a net loss of 41 cents per diluted share for the quarter ended on December 31, 2016. The company lost slightly less per share than it did during the same quarter in 2015. Despite recording a net loss, the company accomplished some milestones during the quarter.
Dextera Surgical CEO stated, “As we begin to extend our commercial reach, we are pleased to see increasing demand for the MicroCutter 5/80 surgical stapler, both in Europe and the United States. dding sales staff in the U.S. and initiating sales in Spain in partnership with B. Braun Surgical S.A. will further raise visibility of the MicroCutter 5/80. In addition, we have expanded our efforts to explore opportunities to raise additional capital through strategic relationships or other means.”
The company is banking on the MicroCutter 5/80 surgical stapler to be a cash cow. Now, if the MicroCutter 5/80 surgical stapler is widely accepted, then DXTR could increase its earnings and revenues.
Dextera Surgical Business Highlights
- The MicroCutter 5/80 was highlighted as a tool to help enable less invasive lung surgery procedures at the Society of Thoracic Surgeons 2017 annual meeting in January. Joel Dunning, M.D., thoracic surgeon at James Cook University Hospital in the UK, demonstrated how the MicroCutter 5/80 helps enable both the subxiphoid and subcostal uniportal lobectomy procedures as well as a new procedure called the microlobectomy.
- Dextera Surgical added two new U.S.-based sales support staff, as part of its plan to expand commercial presence by adding two to three sales support staff per quarter.
- Continued the co-development program with Intuitive Surgical to develop a surgical stapler and cartridge for use with Intuitive’s da Vinci® Surgical System.
- DXTR enrolled additional patients and added new sites for the MicroCutter-Assisted Thoracic Surgery Hemostasis (MATCH) post-market surveillance registry to evaluate the hemostasis and ease-of-use for the MicroCutter 5/80. This is a prospective, open-label, multi-center registry. Dextera Surgical expects to enroll up to 120 patients requiring surgical stapling during a lobectomy or segmentectomy at leading centers in the U.S. and Europe.
- Engaged JMP Securities LLC to explore a full range of strategic alternatives including a possible sale of the company.
Could DXTR Still Rise?
The news pushed DXTR to a high of $1.98, but pulled back and closed at $1.49 on the day. That in mind, the stock has a 30-day average daily trading volume of 120K, making it thinly-traded. However, traders exchanged over 6M shares on the day of the release. The stock is still over 60% off its 52-week high, according to OTC Markets. If Dextera Surgical could lengthen its commercial reach, the company could see increasing demands for the MicroCutter 5/80 surgical stapler. Consequently, this could lead to increased revenues and earnings. This bullish news could be one of the catalysts the stock needed to breakout and potentially retest its 52-week high.