Vivos Therapeutics (NASDAQ: VVOS) stock is up 830% yesterday. That’s a real price move by the way, not some nominal thing as the result of a reverse stock split or anything. The cause here is that they’ve managed to gain FDA approval for their device against sleep apnea. That probably is worth some hundreds of percent on the VVOS stock price. But whether it’s worth over 800%? Well, opinion could differ on that - as they clearly do for the stock fell back near 30% after hours.
The news itself: “Vivos Therapeutics, Inc. (NASDAQ:VVOS), a leading medical device and technology company specializing in the development and commercialization of highly effective proprietary treatments for sleep related breathing disorders, today announced that it has been granted 510(k) clearance from the U.S. Food and Drug Administration (FDA) for treating severe obstructive sleep apnea (OSA) in adults using the Vivos’ removable CARE (Complete Airway Repositioning and/or Expansion) oral appliances. Vivos’ CARE appliances include the flagship DNA oral appliance, the mRNA oral appliance and the mmRNA oral appliance.”
Or put a little more pithily: “Collectively known as the Complete Airway Repositioning and/or Expansion (CARE) devices, the mouthpieces are newly cleared to help treat severe obstructive sleep apnea, or OSA, in adults, Vivos announced Wednesday. They’d previously racked up clearances in mild-to-moderate cases of the condition.”
Vivos Therapeutics stock price from Google Finance
This is worth a rerating of Vivos stock, no doubt about that. But we’ve seen previous volatility there, as we noted in August about VVOS stock: “Vivos Therapeutics (NASDAQ: VVOS) is up 109% this morning. VVOS stock has no real reason to be doing this other than lots of people are trading in the stock. Yes, yes, we do know about momentum trades and we also generally recommend not getting involved in them.” There wasn’t any particular cause back then and the effect quickly faded.
There is a reasonable cause right now. But we’d suggest that that past volatility will continue here. As with that 28% decline after hours. Yes, FDA approval is exciting but perhaps not that, 800% and more exciting.
