Endologix, Inc. (ELGX), a global company that markets medical devices for the treatment of abdominal aortic aneurysms yesterday announced that the company met with the FDA about its Nellix Endovascular Aneurysm Sealing System.

The company announced it will seek US approval of Nellix, as it’s already being sold in Europe and other international markets. Endologix will work with the FDA and expects to get patent approval by the fourth quarter and PMA approval by 2020.

Endologix, Inc. CEO’s  Comments

John McDermott, Chief Executive Officer of Endologix, Inc., commented, “While the timeline has shifted from our projections, we appreciate the FDA’s collaboration as Nellix® EVAS proceeds in the regulatory process. We have evidence that our previously updated Nellix® IFU provides excellent patient outcomes and look forward to starting the confirmatory clinical study with our Gen2 device. We appreciate the support of our physicians worldwide and their continued collaboration in developing new technologies and conducting clinical studies to provide the best outcomes for patients with abdominal aortic aneurysms.”  Business Wire

ELGX Technical Analysis

(Click on image to enlarge)

Endologix Chart

ELGX opened trading yesterday at $6.69 which was down from the previous day’s trading close of $6.80. Shares closed trading yesterday at $6.73 and spiked down after the market closed to $5.50, equivalent to an 18% decrease from the closing price. Taking a look at the daily chart we can see the last time ELGX traded below these levels we have to go back to December 28th, 2016 when it traded at highs of $5.33, which is the price I like to trade for penny stocks.

Taking a closer look at the daily chart we can see that before the spike down ELGX had already been in an overall downward trend dating back to October 10th, 2016 when it traded at $13.21. ELGX has a float of 69.06 million shares and traded below the normal daily trading volume on Wednesday.