Sunshine Heart Inc (NASDAQ:CHFS)
Sunshine Heart Inc (NASDAQ:CHFS) traded higher in Thursday’s trading session after announcing plans to relocate the manufacturing of Aquadex Flex Flow system to its own facility. The stock was up by 13.26% share on the news to end the day at $0.76 a share.
Sunshine Heart Inc (NASDAQ:CHFS) is an early stage medical device company specializing in cardiac and coronary disease products. The company is currently commercializing the Aquadex FlexFlow System indicated for the treatment fluid overload in patients who have failed diuretic therapy.
Thursday’s rally did little to alter direction of trade as the stock continues to trade in a strong downtrend. The stock remains suppressed in a tight $0.68 to $0.82 trading range. CHF Solutions has underperformed the overall industry having dropped from highs of $26 a share as of December 2016.
Aquadex Flex Flow In House Manufacturing
It awaits to be seen if changes in the manufacturing of the company’s lead product will help push the stock higher from the current levels. The company is transitioning manufacturing from Baxter International to its facility in Eden Prairie in Minnesota.
Sunshine Heart Inc (NASDAQ:CHFS) acquired the manufacturing assets with the acquisition of Aquadex mid last year. However, Baxter was allowed to continue manufacturing the company’s products as part of a commercial Manufacturing and Supply Agreement. Under the terms of the agreement, the company is to continue purchasing raw materials and finished goods from Baxter until February next year.
The set-up of the manufacturing assets at the new site is almost complete setting the stage for production of Aquadex FlexFlow system to begin in the fourth quarter.
“Bringing the manufacturing of the Aquadex FlexFlow system products in-house will give us greater control and flexibility in managing our operations. Over time, we expect that this will result in improved gross margins as volumes and capacity utilization increases,” said CEO John Erb.
Asia and Europe Marketing Push
In a bid to target customers in Asia and Europe, Sunshine Heart Inc (NASDAQ:CHFS) has engaged the services of Laurent Duhoux as an Independent Business Development consultant. He joins the company with over 25 years’ worth of marketing experience in medical device expertise. Laurent has previously worked at Edward Life Sciences where he successfully launched a number of products in addition to pursuing sales opportunities in Europe.
Separately, Sunshine Heart Inc (NASDAQ:CHFS) will announce its second quarter results when the market opens on August 8, 2017.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.