Echo IQ to Face Selling Pressure After U.S. Setback

Dow Jones
昨天
 

2239 GMT - Echo IQ's shares are likely to be sold off today after the U.S. Food and Drug Administration didn't give clearance to its EchoSolv HF tool for detecting heart failure, says Petra Capital. The FDA issued a Not Substantially Equivalent determination. "This is a significant and relatively uncommon setback, although not necessarily terminal," analyst Tanushree Jain says. There are examples of companies ultimately gaining FDA clearance after addressing concerns. Still, it takes extended time and cost and carries elevated risk. "In Echo IQ's case we do not believe it will be a quick or a simple resolution either," says Petra Capital, downgrading the stock to "sell," from "hold." Echo IQ ended Tuesday at A$1.28.

 

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