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 (NASDAQ:EYES) 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.