Sientra plummets on U.K. breast implant halt

Shares of breast implant maker Sientra (NSDQ:SIEN) plummeted some 53% yesterday after British medical regulators suspended sales of implants made by Sientra’s Brazilian supplier Silimed. The U.K.’s Medicines & Healthcare Products Regulatory Agency yesterday said it and other European regulators are testing Silimed’s products – which include breast, penile and testicular implants – after contamination was detected during an audit of the company’s manufacturing practices. Investors reacted by sending SIEN shares down -52.9% to a $9.70 close yesterday. The stock rebounded 14.8% in pre-market activity this morning, to $11.13 per share. Although Leerink Partners analyst Richard Newitter yesterday said the reaction by Sientra stockowners is overdone, citing differences in the way Silimed makes the Sientra implants, Leerink today suspended its coverage of Sientra, due to “uncertainty regarding the sole manufacturer of the company’s sole product.” Newitter initially more optimistic about the impact of the Silimed action on Sientra. “While SIEN’s products are manufactured at the same facility where Silimed manufactures the products in question, they follow separate protocols and thus we think it’s premature to extrapolate that the FDA will necessarily take similar action,” Newitter wrote yesterday in a note to investors. “Versus the products Silimed makes for the European market, the products Silimed manufactures f...
Source: Mass Device - Category: Medical Equipment Authors: Tags: Cosmetic/Aesthetic Regulatory/Compliance Wall Street Beat Women's Health Medicines & Healthcare products Regulatory Agency (MHRA) Sientra Silimed Source Type: news