Surmodics gains after Needham upgrades stock rating to 'buy'

SurModics

13/06/2023 19:38

** Shares of Surmodics Inc  SRDX.O  jump 15.4% at $26.2
    ** Brokerage Needham upgrades medical device coatings
maker's stock rating to "buy" from "hold" 
    ** Sees a likely FDA approval for co's experimental vascular
disease device in its financial Q4 of 2023, sooner than
brokerage previously expected 
    ** SurVeil Drug-Coated Balloon is a potential treatment for
peripheral artery disease, which causes a reduction of blood
flow through arteries
    ** SRDX submitted an amended premarket application (PMA) in
May that it believes addresses the FDA's concerns, after the
agency in January "indicated" the PMA was not currently
approvable 
    ** Brokerage believes shares can return to at least the
low-$30 range and potentially higher, if the device which will
be distributed by Abbott Laboratories  ABT.N , is approved by
the FDA
    ** Sees SurVeil as a meaningful growth driver helping bridge
the gap until co's other two products materially contribute
to growth 
    ** Including session's gain, stock fell 22.4% YTD

 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))