The Allegra (ASX: AMT) share price rocketed up today on positive testing results for its revised spinal cage device. Let’s take a look.
The post Why the Allegra (ASX:AMT) share price rocketed up 137% today appeared first on The Motley Fool Australia. –
The Allegra Orthopaedics Ltd (ASX: AMT) share price shot up 137.5% today on positive test results. The company advised that testing of its revised spinal cage device showed significant improvement in strength, compared to its previous design.
The Allegra share price jumped as high as 61 cents at the news today, before retreating to close at the current price of 44 cents.
About the test results
The spinal cage device is Allegra’s flagship innovation project, a unique biodegradable cervical fusion device to be used as a human bone substitute.
The medical device company has engaged an accredited testing facility in the United States to confirm the effectiveness of a revised design to the device. Today’s results showed a significant improvement in strength. Specifically, the revised device has a compressive strength of 60kN. This is significantly above human physiological load (1.2kN), and sheep physiological load (3-4kN).
It is also double the compressive strength of the previous design, and above the 95th percentile for published data on FDA approved cages.
Allegra said the same facility conducted dynamic compressive testing to determine the fatigue life of the spinal cage. The testing passed the regulatory-required 5 million dynamic cycles without any signs of fracture or failure.
Due to these positive results, Allegra will now go ahead with the new design. The company plans to start a pilot animal study in January 2021 in Australia. This will be a confirmatory study to be followed by a large animal study, as per FDA requirements.
Today’s announcement marks one year since the company started its initial preclinical large animal study.
The Allegra share price in 2020
The Allegra share price spiked in July by as much as 500% to 53 cents after it acquired Sr-HT-Gahnite patents from the University of Sydney. This is the material used for its spinal cage device.
After today, the Allegra share price is closing in on that high, and currently commands a market cap of $21 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.