Shares of microcap fiber optic test and measurement sensor-maker Luna Innovations (NASDAQ:LUNA) surged as much as 85% in Monday trading before finally settling down to book a 41% gain for the day. The catalyst: The company announced that it had extended its multiyear agreement to develop and supply "high-speed shape-sensing technology" to robotic surgery giant Intuitive Surgical (NASDAQ:ISRG) for use in its da Vinci surgical robots.
The agreement promises to deliver "milestone" payments to Luna as it brings new components to market and, as Luna CEO My Chung explained in a statement, "further expands our relationship with a leader in the growing field of robotically assisted surgery" -- Intuitive Surgical.
With $2.3 billion in annual revenues, Intuitive Surgical makes more money in five days than Luna (annual revenue: $30 million) makes in a year.
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