CardioGenesis Corp.'s stock was pummeled, losing 71% of its value, a day after the medical device company revealed that a federal panel failed to back its latest laser treatment for heart patients.
Shares of the Foothill Ranch company dropped $2.04 to close at 85 cents on Nasdaq. Shares fell as low as 76 cents a share.
CardioGenesis said it will continue to pursue Food and Drug Administration approval for its Percutaneous Myocardial Revascularization Laser System. The device is threaded through a blood vessel in the leg into the heart and blasts tiny holes in the heart to relieve severe chest pain, or angina.
The company said an FDA advisory panel voted 7-2 against recommending the device. The panel said the benefits of the laser don’t outweigh its risks, which include death and heart rhythm disturbances.