Biotechnology and medical device stocks are rebounding sharply today after the selloff in the last few trading sessions. While the broader market has fallen sharply, the biotech and medical devices sectors has come under pressure in particular as investors had been worried about high valuations in the sectors for a while.
Medical device stocks have been boosted by some solid earnings from major companies during the ongoing earnings season. Earlier today, Smith & Nephew Plc (NYSE: SNN) reported revenue of $4.63 billion for fiscal year 2015. Boston Scientific Corporation (NYSE:BSX), another major medical device company, reported total revenue of $1.97 billion for the fourth quarter, up 4.8% on a year-over-year basis. The company also provided guidance for 2016.
BSX expects 2016 revenue to be between $7.9 billion and $8.1 billion.
One of the biggest gainers in the medical devices space today is Frisco, Texas-based OxySure Therapeutics Inc. (OTCQB:OXYS). OXYS is a medical technology company that focuses on the design, manufacture and distribution of specialty respiratory and medical solutions. At last check, OXYS shares were trading 33.60% higher at $0.167 on volume of 272,611, which is more than double the daily average volume of 105,920.
OXYS shares are surging after the company announced that it has established a supply agreement with ORS Nasco, a division of Essendant. Essendant is a worldwide distributor of workplace essentials and has $5.4 billion in sales.
Commenting on the agreement, Julian T. Ross, CEO of OxySure Therapeutics, said that it allows the company to offer additional, complimentary offerings to its institutional customers seeking a single source solution for their medical emergency preparedness, therapeutics and medical risk management needs.
Ross said that in addition to OXYS’s OxySure Model 615 and related therapeutics and medical emergency offerings, the company’s sales teams can now offer expanded solutions for first aid safety, respiratory protection, heat stress protection and eye protection, to name just a few options.
OXYS said that it plans to develop a new, enhanced catalog of products which will be expanded to include first aid kits, antiseptics, CPR masks and eye wash solutions in the first aid safety category; disposable and escape respirators in the respiratory protection category; and hydration and cooling solutions in the heat street protection category.
Clark Hood, VP of Sales at OxySure Therapeutics, noted that the company remains committed to developing and selling innovative, patented products in the medical device and therapeutic areas.
