Sunshine Heart (SSH) had been a stock to watch anyway over the past trading week thanks to growing trading volume and increased awareness about the company's novel medical device that could make a huge impact in the future treatment of Class III heart failure. Sunshine's C-Pulse Heart Assist System, as described earlier this week, is a small device that is implanted in a patient's heart, but because it is implanted outside of the bloodstream it allows quality-of-life conveniences - such as the ability to be disconnected (for showering, for example) - that could quickly make it the market leader in meeting the unmet medical need of Class III and ambulatory Class IV heart failure.
Early studies have also shown that C-Pulse may not only be able to steady the effects of heart failure, but perhaps reverse them, as well.
The technology and potential behind this breakthrough product may finally be getting noticed, if Friday's trading is any indication. Volume had been growing for the duration of a couple of weeks now, but trading during the last two days of the week were monumentally huge, in comparison to previous trading patterns, and Friday's volume influx came with a price spike of nearly sixty percent - and higher at points during the intra-day.
With multiple catalysts pending this year, Sunshine Heart is not one to let too far out of sight. When lightly-traded companies such as this one with potentially huge technology start to move - things could materialize very quickly, as evidenced by Friday's trading.
Keep an eye on the Sunshine.
Assuming developments proceed as expected, Sunshine could register its first sales later this year, while initiating a US trial right around the same time. Both events provide significant potential catalysts for the company and its trading shares.
In accordance with the pipeline progression, the company has also received increased interest from investors and media outlets of late. Exposure on both MSN Money and Fox Business last week likely contributed to Friday's trading volume that exceeded - in just one session - the number of shares traded in the past two months COMBINED.
Trading opened light again this week, but it's become apparent that new investors may be starting to take notice of the company and its potential.
With a minimally-invasive procedure to implant the device, the technology falls well in line with today's medical trends of finding cheaper and more effective ways to treat what have been very expensive and invasive conditions. C-Pulse is also implanted outside of the bloodstream, a very key fact considering quality-of-life, because patients can disconnect for convenience - when showering, for example. Medical costs are also conserved, based on data thus far collected, due to the decreased need for hospital visits and/or extended stays.
Given the relatively modest market cap while the C-Pulse device makes its way through various regulatory processes, consideration should also be given Sunshine Heart's status as a potential takeover or merger target. The market cap is currently relative chump change for large medical device companies - whose market caps are in the billions - and its likely that, if C-Pulse continues to prove successful, one of the big players would look to acquire the technology.
Disclosure: Long SSH.
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