Please ensure Javascript is enabled for purposes of website accessibility

Why Second Sight Medical Products, Inc. Soared Today

By Daniel Sparks – Feb 24, 2015 at 12:41PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With reimbursement from the French government for Argus II, Second Sight Medical Products will likely benefit from greater demand.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of medical manufacturer and marketer of implantable visual prosthetics Second Sight Medical Products (EYES -2.56%) rose as much as 19% today after the company announced that all three of the centers approved to implant its Argus II Retinal Prosthesis System with reimbursement from the French Government were successful in their first implants.

The Argus II treats outer retinal degenerations, providing functional vision to patients who have lost their sight due to a rare, hereditary disease called retinal pigmentosa. The device is the first approved retinal prosthesis in the world.

So what: The Argus II is essential to Second Sight's business performance since the product is the company's primary source of revenue. In 2014, the French national healthcare reimbursement program "Forfait Innovation" named the Argus II as its first ever medical device for which it would fund implementation and associated hospital fees. As an expensive operation, and with just over 100 individuals receiving implants globally so far, today's successful first implementations is excellent news for potential patients and will drive business for the company. Thirty-six retinitis pigmentosa patients in France "stand to benefit from this life-changing technology with this first step in national reiumbursement," according to the company's press release this morning.

Now what: With just $2 million in sales in the trailing twelve months and a $300 million market capitalization, Second Sight's market value already prices in significant growth, making the stock a speculative bet. And after today's nearly 20% rise, any incremental upside for Second Sight's business from today's news might have already been taken into account by the market.

Daniel Sparks has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Second Sight Medical Products, Inc. Stock Quote
Second Sight Medical Products, Inc.
EYES
$2.28 (-2.56%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.