FDA Approvals Boost Biolase

Shares of Biolase Technology Inc. moved up Wednesday after the San Clemente company said federal regulators approved two more of its laser products for marketing.

Biolase also drew a strong speculative buy rating Wednesday from Westfalia Investments Inc., which began coverage of the company.

The stock moved up 6.6%, or 16 cents, to $2.59 a share on trading of 995,200 shares, more than 11 times heavier than average daily volume over the last three months. At one point during the session, the shares were up 13%.

Westfalia analyst Peter Cardillo, explaining the bullish rating, said Biolase “is headed toward profitability. We’re looking at a company that has had problems in the past and now we’re looking at a turnaround.”

Biolase said the Food and Drug Administration approved its TwiLite laser for performing a range of soft tissue procedures and the HyLite laser, which is designed to fight periodontal diseases.

According to a survey by First Call/Thompson Financial, analysts expect the company to lose 4 cents a share in the third quarter. Analysts expect the company to break even in the fourth quarter.

A year ago, Biolase posted a loss of $6.7 million in the third quarter on sales of $90,000. It lost $1.65 million in the fourth quarter on sales of $880,000.