Here’s Why Second Sight Stock is Skyrocketing 400% Today
The company’s latest vision system just received FDA approval.
Shares of Second Sight Medical Products (NASDAQ:EYES) were surging today after the company announced that the Food and Drug Administration (FDA) has approved the company’s Argus II retinal prosthesis system.
The company’s stock skyrocketed more than 400% on the news,
Second Sight says the Argus II helps retinitis pigmentosa (RP), which can cause blindness, by providing “electrical stimulation that bypasses the defunct retinal cells and stimulates remaining viable cells inducing visual perception in individuals with severe to profound RP.”
The system works by converting images captured by a small video camera mounted on eyeglasses and transmitting them to electrodes that are implanted on a person’s retina surface. The electrical stimulation bypasses “defunct retinal cells” and instead stimulates viable cells.
The Argus II is an updated version of Second Sight’s previous Argus system, with new ergonomic improvements to the hardware, increased processing power, and the potential for improved video processing.
“We are very pleased to have received this approval, as it presents an opportunity to offer external hardware that we believe enhance comfort and aesthetics compared with the legacy Argus II system,” Matthew Pfeffer, the acting CEO of Second Sight, said in a statement.
When Will Second Sight Begin Production?
While the device has received approval from the FDA, Second Sight said that a decision on “when or if” to begin production will be determined by the company’s “planned business combination” with Pixium Vision.
“Should the business combination be completed, the new management team will then evaluate how best to proceed with the Argus 2s Retinal Prosthesis System, as well as all other products in development,” the company said.
Pixium Vision and Second Sight entered into an agreement in January to become a controlling shareholder, with 60% of total equity, of the combined companies.
It’s clear that investors are buying Second Sight’s stock based on the news today. That can be risky for investors because these massive share price swings can go the other way as well. For example, Second’s Sight share price was up by more than 530% at one point today, but lost a chunk of those gains by the afternoon — though the stock was still up by more than 400% as of this writing.
It’s not clear yet whether or not Second Sight will actually produce the new Argus II system. If it doesn’t, Second Sight investors can likely expect a huge share price decline when/if that news surfaces.
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