Boston, MA 10/08/2013 (wallstreetpr) – Atossa Genetics Inc (NASDAQ:ATOS) is a small development stage healthcare company. The company focuses of prevention of breast cancer through tests conducted by small devices approved for Food and Drug Administration. And with characteristic volatility associated with small cap company, its market cap has almost halved in a single market session because of a test kit recall related announcement by the company.
The recall of its ForeCyte Breast Health Test and Mammary Aspiration Specimen Cytology Tests has been totally voluntary on company’s part and company was not forced to withdraw these products from markets. A few months back, Atossa had received a letter from Food and Drug Administration, warning and raising concerns about both these products.
Some traders have been heard saying that it is possible that stock might be over reacting to this news flow. But it seems that there might be a very solid reason behind this massacre of company’s stock on the bourses. If grapevine is to be believed, then almost 90 percent of these two products were in possession of company’s distributors. And remaining 10 percent is supposedly in customer possession all across the country. Company alongwith a recall for both these products, has also warned customers against using both of them.
Company in its filings with the regulators has also said that as on date, it is yet to receive even a single complaint about injury caused by any of these two products. Company also said that it was unaware of any health risk or otherwise being cause by its test kits. It said that it was just because of the warning received from FDA that company had decided to withdraw these products from markets. Being a small cap company analysts community is not much impacted by this sudden fall from cliff for company’s stock and are playing a wait and watch game.
